Clean Energy Fuels Finalizes $29.5 Million Sale of Investment Tax Credits, Strengthening Its RNG Portfolio and Market Leadership
Clean Energy Fuels Corp. (Nasdaq: CLNE), a recognized leader in renewable natural gas (RNG) solutions for the transportation industry, has announced the successful completion of a $29.5 million sale of investment tax credits (ITCs). The transaction, finalized through CE bp Renew Co, LLC — a joint venture between Clean Energy and BP Products North America Inc. — marks the third and final monetization of ITCs associated with the company’s six operational RNG projects.
This latest transaction underscores Clean Energy’s ongoing commitment to developing low-carbon, sustainable fuel infrastructure across the United States, particularly in the heavy-duty transportation sector. With the completion of this sale, the company has now fully monetized the ITCs tied to all six of its operating dairy RNG facilities — a strategic milestone in both financial and environmental terms.
Breakdown of the ITC Transaction
The $29.5 million in investment tax credits were generated by four specific RNG projects located in some of the most agriculturally productive regions of the U.S.: Ash Grove, Marshall Ridge, VF Renewables, and Tri Cross. These projects are based in Minnesota, Iowa, and South Dakota — states known for their extensive dairy farming and renewable energy initiatives.
The four facilities utilize manure from dairy operations to produce renewable natural gas through anaerobic digestion. Collectively, they have the capacity to generate an estimated 3.9 million gallons of negative carbon-intensity RNG annually. This fuel is primarily used to power commercial and municipal transportation fleets — including heavy-duty trucks and buses — that seek to meet stringent emissions regulations while lowering operational costs.
By converting dairy waste into transportation fuel, Clean Energy’s projects simultaneously address agricultural waste management, reduce methane emissions, and displace diesel fuel with a cleaner alternative. The negative carbon intensity of the RNG produced indicates that the fuel removes more greenhouse gases from the atmosphere than it emits during its lifecycle — a crucial factor in meeting U.S. and international climate goals.
Strategic Importance of the ITC Monetization
“This transaction highlights the value of our renewable natural gas development portfolio,” stated Clay Corbus, senior vice president and head of renewable fuels at Clean Energy Fuels. “As the third successful transaction to fully monetize our RNG projects, it’s a milestone which reflects market confidence and positions Clean Energy for further growth in the clean fuel sector.”
The successful monetization of the investment tax credits represents a crucial financing mechanism in the capital-intensive field of RNG development. Through federal tax incentives like the ITC, developers can recoup a portion of upfront construction and equipment costs, allowing them to redeploy capital into new projects more quickly. In Clean Energy’s case, these proceeds are expected to further enhance its financial flexibility and provide momentum for the development of additional RNG facilities and fueling infrastructure.
The deal also highlights the value of Clean Energy’s joint venture with BP Products North America, a major player in global energy markets. The CE bp Renew Co. partnership combines Clean Energy’s specialized expertise in RNG project development and operations with BP’s financial resources and market reach. This collaboration is strategically aligned to accelerate the build-out of RNG capacity across the country, ensuring that more commercial fleets can transition away from fossil fuels.
Scaling RNG Production for the Transportation Sector
As the transportation industry faces increasing pressure to decarbonize, Clean Energy is emerging as a leading provider of scalable, cost-effective RNG solutions. RNG is a drop-in replacement for conventional natural gas that can be used in existing infrastructure and vehicle engines. It offers a path toward immediate emissions reductions without requiring a complete overhaul of equipment, which is particularly important for long-haul trucking and transit agencies.
The company’s dairy-based RNG projects are part of a broader portfolio of renewable fuel initiatives aimed at reducing greenhouse gas emissions in transportation — one of the largest contributors to climate change in the United States. According to the U.S. Environmental Protection Agency (EPA), transportation accounts for nearly 30% of total greenhouse gas emissions, with heavy-duty vehicles representing a significant share.
By focusing on negative carbon-intensity RNG, Clean Energy offers a compelling solution that delivers both environmental and economic benefits. The company’s fuel not only qualifies for federal and state renewable fuel credits, including the Renewable Fuel Standard (RFS) and California’s Low Carbon Fuel Standard (LCFS), but also supports corporate sustainability goals for fleet operators.
Recent Developments and Market Outlook
This announcement comes at a time of growing momentum in the RNG space. Earlier this year, Clean Energy opened additional RNG fueling stations across the Midwest and West Coast, and it has signed long-term supply agreements with several major logistics and transportation companies. The company has also invested in digital monitoring tools to enhance operational efficiency across its RNG network.
Meanwhile, federal policy is increasingly supportive of renewable energy infrastructure, particularly through incentives in the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law. These policy developments have strengthened investor confidence in the long-term viability of RNG and related clean technologies.
Market analysts suggest that the North American RNG market is poised for significant expansion over the next decade, driven by regulatory support, corporate net-zero commitments, and advancements in production technology. Clean Energy, with its established infrastructure and growing project pipeline, is well-positioned to capture a leading share of this market growth.
