Clean Energy Fuels, a provider of natural gas for vehicle fleets in the US, has signed a 15-year agreement through its subsidiary, Dallas Clean Energy, for the sale of renewable biomethane produced at the McCommas Bluff landfill in Dallas, Texas.
Beginning in April 2009, the biomethane will be sold at fixed prices that increase in 2010 and 2011 and then remain fixed over the remainder of the agreement. The price was not disclosed.
According to Clean Energy, the agreement calls for the sale of up to 4.5 billion Btus per day of biomethane from April 2009 through September 2010 and between five billion and six billion Btus per day of biomethane through March 2024.
The actual volumes sold will depend on the gas recovery rates from the landfill and successful expansion of the gas processing facilities. Shell Energy North America will act as the purchaser and supply the biomethane to the end-user. Atmos Energy will provide intrastate transportation services from the gas processing plant, said the company.
Andrew Littlefair, president and CEO of Clean Energy, said: This gas sale agreement validates selling renewable biomethane as a valuable, low carbon fuel. It provides Clean Energy with a sound, long-term revenue stream and also supports expansion of the plant’s production capacity for additional gas sales, including potential use as vehicle fuel.
