Clean Energy Fuels begins production at Drumgoon Dairy RNG project

Clean Energy Fuels Corp. (Nasdaq: CLNE) has achieved a significant milestone in sustainable energy with the completion of the Drumgoon Dairy RNG project, a new renewable natural gas (RNG) production facility at Drumgoon Dairy in Lake Norden, South Dakota. This innovative project, valued at $38 million, is set to supply 1.66 million gallons of negative carbon-intensity RNG annually to the transportation market at full capacity, marking a substantial stride in environmental stewardship.

Clean Energy Fuels Corp. Unveils Innovative RNG Facility

The Drumgoon Dairy RNG project, which was completed in early December 2023, began injecting RNG into the interstate natural gas pipeline system within weeks of its completion. This RNG will be virtually stored until it receives its carbon-intensity score, expected in the first half of 2024. This project aligns with federal and state environmental credits, showcasing Clean Energy’s commitment to sustainable practices.

Clean Energy Fuels commissions the Drumgoon Dairy RNG project in Lake Norden. Photo courtesy of Business Wire.

A Pioneering Step in Greenhouse Gas Emission Control

Clay Corbus, senior vice president of renewables at Clean Energy, highlighted the significance of the project. “Completion of the RNG project at Drumgoon Dairy, along with several others that are right behind it, is already making a contribution to controlling harmful greenhouse gas emissions,” he said. The project reflects Drumgoon’s multi-generational commitment to future-focused farming practices, including the latest technology for cattle management and the transformation to antibiotic-free herds.

Strategic Partnership and Expanding Market Reach

Financed through a joint venture with bp and developed with Dynamic Renewables, the Drumgoon Dairy RNG project is one of several RNG projects partnered by these companies in the Midwest. The produced RNG will be available at Clean Energy’s fueling infrastructure, meeting the growing demand for ultra-clean fuel from major customers like UPS, Republic Services, LA Metro, Knight Swift, Amazon, and others.

Impact on U.S. Greenhouse Gas Emissions

Agriculture and transportation are significant contributors to U.S. greenhouse gas emissions, accounting for nearly 10 percent and 28 percent, respectively. The RNG production at Drumgoon Dairy, derived from captured methane from farm waste, plays a vital role in reducing these emissions. RNG used as a transportation fuel significantly lowers greenhouse gas emissions compared to diesel, contributing to its negative carbon-intensity score.