Total, Clean Energy Fuels Form US Biogas JV
France's Total has agreed to form a 50:50 joint venture with California-based Clean Energy Fuels to develop renewable natural gas (biogas) in the US, the latter company said on March 4.
The pair will initially commit $100mn to the joint venture, potentially increasing the investment to $400mn or more as development moves forward. Total will provide credit to support Clean Energy's development of the biogas value chain, including a $45mn sum for contracted fuelling infrastructure.
Clean Energy is the biggest supplier of gas as a transport fuel in the US, and the largest supplier under the California Low Carbon Fuel Standard (LCFS) programme. The gas can also be used to produce zero-carbon hydrogen and electricity, and still generate LCFS environmental credits.
"The finalisation of this JV with Total, which was originally announced in December last year, demonstrates the commitment both companies have to the growth of renewable natural gas, a fuel that can tackle serious climate issues today," Clean Energy CEO Andrew Littlefair said in a statement.
Growth in customer demand for biogas continues to accelerate, Clean Energy said. The company last month secured a multi-year contract to supply biogas to Los Angeles County Metropolitan Authority, the biggest transit bus operator in the US.
Clean Energy is already working with Total to expand biogas use in the heavy-duty truck market under its Zero Now programme, which allows fleets to purchase biogas trucks for the same price as diesel trucks.