International Paper Extends Natural Gas “Virtual Pipeline” Contract with NG Advantage for Ticonderoga, NY Mill
October 15 2015 - 6:00AM
Business Wire
NG Advantage LLC, a majority-owned subsidiary of Clean Energy
Fuels Corp. (NASDAQ: CLNE), today announced that it has signed an
eighteen month contract extension with International Paper. Under
this extension, NG Advantage will continue delivering clean-burning
compressed natural gas (CNG) to International Paper’s Ticonderoga,
NY paper mill using its virtual or mobile pipeline of
tractor-trailers that deliver 24/7. This is the largest mobile
pipeline project in the U.S. and showcases the scalability of NG
Advantage’s service to deliver natural gas as an alternative fuel
choice for even the largest industrial energy users.
“It’s a pleasure to work with the very innovative people at
International Paper and help them meet their environmental and
financial goals in a rapidly changing world,” said NG Advantage CEO
Tom Evslin. “The service to the IP mill demonstrates that our
trucked CNG platform has successfully been scaled to meet demand
which would have formerly required a special pipeline
extension.”
International Paper had long been planning a switch to natural
gas to displace much of the #6 fuel oil used at the Ticonderoga
mill in order to substantially reduce its environmental footprint
and enjoy the price stability of the domestic fuel. The mill had
originally planned to pay much of the cost of a traditional
pipeline extension from Vermont to Ticonderoga, NY, and sought bids
for trucked CNG only for interim service until the pipeline
arrived. NG Advantage, which was the first company to provide
virtual pipeline service in the U.S., received the contact for that
interim service in 2014.
A mill as large as Ticonderoga requires a customized end-to-end
energy supply chain. NG Advantage designed new hardware, developed
new procedures, and built extensions to its cloud-based SCADA
(control software). The result was deliveries beginning on schedule
in May of 2015 with NG Advantage providing the mill with
approximately eighteen trailer loads of clean, inexpensive natural
gas daily.
International Paper canceled plans for the pipeline because of
escalating delays and costs and issued an RFP for long-term virtual
pipeline service to keep natural gas in their fuel mix. After
evaluating bids, International Paper chose to extend its existing
contract with NG Advantage.
International Paper is the seventh paper mill and the
twenty-sixth location to contract with NG Advantage. Natural gas
delivered 24/7 by truck gives plants an experience much like being
on a traditional pipeline without the long term capital commitment
of a pipeline extension. Burning natural gas instead of oil
products reduces CO2 emissions by 26%; substituting natural gas for
coal reduces CO2 by about 50%. Natural gas use also eliminates
almost all Sulphur and particulate emissions and enables a
substantial reduction in nitrous oxides.
About NG Advantage LLC:
NG Advantage is a U.S.-based mid/downstream provider and the
leader in the new “virtual pipeline” industry of trucking
compressed natural gas (CNG) in the U.S. NG Advantage’s virtual
pipeline service brings the economic and environmental benefits of
North American natural gas to large institutions and industrial
customers without access to a pipeline. The Company’s current
customers include large regional hospitals, paper mills, asphalt
facilities, food processors, industrial dry cleaners, LDCs, and
manufacturing facilities. Facilitated by the purchase of a
controlling interest in the company by Clean Energy Fuels
(NASDAQ: CLNE), NG Advantage is expanding its service area
nationwide. For more information on NG Advantage, see
www.ngadvantage.com.
About Clean Energy:
Clean Energy Fuels Corp. (NASDAQ: CLNE) is the leading provider
of natural gas fuel for transportation in North America. We build
and operate compressed natural gas (CNG) and liquefied natural gas
(LNG) fueling stations; manufacture CNG and LNG equipment and
technologies for ourselves and other companies; develop renewable
natural gas (RNG) production facilities; and deliver more CNG, LNG
and Redeem RNG fuel than any other company in the U.S. For more
information, visit www.cleanenergyfuels.com. See more at:
https://www.cleanenergyfuels.com/.
About International Paper:
International Paper (NYSE: IP) is a global leader in
packaging and paper with manufacturing operations in North America,
Europe, Latin America, Russia, Asia and North Africa. Its
businesses include industrial and consumer packaging along with
uncoated papers and pulp. Headquartered in Memphis, Tenn., the
company employs approximately 58,000 people and is strategically
located in more than 24 countries serving customers worldwide.
International Paper net sales for 2014 were $24 billion. For more
information about International Paper, its products and stewardship
efforts, visit internationalpaper.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151015005392/en/
NG Advantage Media Contact:Mary
Evslin802-760-1167mevslin@ngadvantage.comorClean Energy Media
Contact:Jason
Johnston949-437-1411jason.johnston@cleanenergyfuels.comorClean
Energy Investor Contact:Tony
Kritzer949-437-1403tkritzer@cleanenergyfuels.com
Clean Energy Fuels (NASDAQ:CLNE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Clean Energy Fuels (NASDAQ:CLNE)
Historical Stock Chart
From Apr 2023 to Apr 2024