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Natural gas fired cars

December 30th, 2011 · 3 Comments

Finally lightening up in the US?

Focused on supporting natural gas fueling in North America, investors, including Boone Pickens, have invested a total of $150 million in Clean Energy Fuels Corp., North America’s leading provider of natural gas fuel for transportation.

The investments resulted from the exercise of Mr. Pickens’ warrants to purchase 15 million shares of the company’s common stock at $10 per share. Mr. Pickens purchased 1.5 million shares and transferred the balance to existing investors RRJ Capital, Seatown Holdings and Chesapeake Energy Corporation, as well as Chief Capital LP, an investment vehicle wholly owned by energy investor Trevor Rees-Jones.

These investments bring the total invested or committed to Clean Energy to $450 million during 2011,” said Andrew J. Littlefair, President and CEO of Clean Energy. “We see this as a tremendous affirmation of both Clean Energy as the leader in natural gas vehicle fueling in America and our America’s Natural Gas Highway initiative that is expanding natural gas fueling infrastructure in cities throughout the country.”

We have a significant program underway to develop CNG and LNG fueling stations serving fleets in the long-haul, regional and port trucking markets, as well as for solid waste, transit, airport and municipal transportation nationwide,” noted Littlefair.

Currently priced up to $1.50 or more per gallon lower than diesel or gasoline (depending upon local markets), the use of natural gas fuel reduces costs significantly for vehicle and fleet owners, and reduces greenhouse gas emissions up to 30% in light-duty vehicles and 23% in medium to heavy-duty vehicles. Additionally, natural gas is a secure North American energy source with 98% of the natural gas consumed produced in the U.S. and Canada.

Tags: Natural Gas

3 responses so far ↓

  • 1 ArtM72 // Dec 30, 2011 at 12:11 pm

    Just announced is a letter of intent by the governors of Oklahome, Colorado, Pennsylvania and Wyoming to purchase CNG fueled fleets…

    http://www.power-eng.com/blogs/whats-happening/2011/11/cng_is_key_for_oklah.html

  • 2 Bruce // Dec 30, 2011 at 3:34 pm

    I worked for a NG Utility and drove a K-car in the early 1990s. It was dual fuel (gasloine/CNG) and had a range of 120 miles on CNG. 10% loss of power on CNG but ran fine. High speed fill stations comprised of cascades of high pressure storage tanks and industrial sized gas compressors was too expensive to get any interest from public filling stations. Operating cost very favorable, initial investment costs for fill stations terrible. Cost to convert gasoline car to dual fuel was about $1,200 at that time. Fast fill station was over half a million.

  • 3 admin // Dec 30, 2011 at 4:44 pm

    Yes, one would say that with natural gas doing $3 per Mcf in the US, there should be a run on this. Simple cheap loans to get more filling stations, or private entrepreneurs who see the opportunity like Boone, or a combination of the two could jumpstart things. Some subsidies to remove the barrier for consumer (the installation cost) could do the rest. The savings for the US would be considerable and it would create lots of jobs in the process, even improve the environment and air quality in cities.