Renewable energy company Clean Energy Fuels has signed a four-year $150 million sustainability-linked senior secured term loan with credit investment platform Riverstone Credit Partners.
The California-based company says the term loan provides it with additional capital to implement its renewable natural gas (RNG) growth strategy as demand for the fuel rises.
Clean Energy plans to use the financing to expand its RNG projects at dairies, which capture methane and convert it into a fuel made from organic waste, reducing carbon emissions by an average of 300% compared to diesel.
RNG proponents also say it can remove methane emissions from cattle. Methane is considered multiple times worse for the atmosphere as a greenhouse gas than even CO2, according to many climate experts.
The proceeds from the term loan will also be used to fund the construction of new RNG fueling stations for transportation sector customers and the development of negative carbon intensity RNG projects. Clean Energy is working towards providing fully zero-carbon RNG by 2025.
“As we articulated at the beginning of the year, we have big plans to increase our supply of RNG from dairies because when it ends up in the tank of a heavy-duty truck or a transit bus, it is rated cleaner than any other alternative in the marketplace,” said Andrew J. Littlefair, president and CEO of Clean Energy.
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“Our joint ventures with bp and TotalEnergies are having great success. We are currently constructing multiple RNG projects at dairies around the country with a healthy pipeline of other projects. This additional financing will allow us to stay on this rapid pace of development,” Littlefair added.
According to a second party opinion obtained from Sustainable Fitch, the transaction is aligned with the five pillars of the Loan Syndications and Trading Association's Sustainability-Linked Loan Principles, Clean Energy notes.
Riverstone is an investment firm focused on executing private equity and credit investments in energy, power, decarbonization and infrastructure.
