BP BP Plc

By Mary de Wet

Clean Energy Fuels Corp. said Wednesday that it is working with BP Products North America Inc, a unit of BP PLC, to develop and operate new renewable natural gas facilities at dairies and other agriculture facilities.

On the BP deal:

Clean Energy and BP plan to share control of the joint venture equally.

"The company will have the option to contribute up to 50% of the JV's capital and 100% of the RNG produced from the projects developed and owned by the JV will be provided to the vehicle fuels market pursuant to the existing marketing agreement between BP and the company," Clean Energy said in a filing with the Securities and Exchange Commission.

BP has advanced $50 million to Clean Energy in a loan agreement to fund capital costs and expenses incurred prior to formation of the joint venture, the company said in the filing.

"The outstanding principal amount of the loan accrues interest at the rate per annum equal to LIBOR plus 433 basis points; interest payable under the loan is essentially offset by BP's obligation to pay the company a monthly JV management fee of $200,000 pursuant to the (memorandum of understanding)," Clean Energy said.

On carbon-negative fuel:

"Carbon-negative RNG is being used today by thousands of vehicles with more and more fleets requesting it every week," Andrew Littlefair, CEO and president of Clean Energy, said in a release.

"Taking this next step allows us to expand the availability of the fuel while providing dairy owners with a way to make a significant impact on the environment and create an additional revenue stream."

Clean Energy said it is the largest provider of renewable natural gas for transportation in the U.S. and Canada, with about 550 fueling stations.

Write to Mary de Wet at mary.dewet@dowjones.com

(END) Dow Jones Newswires

March 10, 2021 07:12 ET (12:12 GMT)

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