Clean Energy Fuels launches new RNG facility in Viborg, South Dakota

Clean Energy Fuels Corp. (Nasdaq: CLNE), a leader in renewable energy solutions, has marked a significant advancement in the renewable natural gas (RNG) sector with the operational launch of its latest production facility located at Tri-Cross Dairy in Viborg, South Dakota. This state-of-the-art facility, positioned on a 5,000-cow dairy farm, is expected to produce an impressive 1 million gallons of negative carbon-intensity RNG annually, contributing significantly to the clean fuel supply chain for North America’s transportation market.

The construction of the RNG production facility, which encompassed the development of digesters and a processing plant, was completed in December 2023 with a total investment of $34 million. Shortly after its completion, the facility began injecting pipeline-quality RNG, highlighting Clean Energy’s commitment to enhancing its fueling infrastructure to meet the growing demand for low-carbon fuel alternatives in the transportation sector.

The project’s financing was secured through one of Clean Energy’s RNG production joint ventures, developed in partnership with Dynamic Renewables. This collaboration underscores a series of initiatives aimed at bolstering RNG production across the Midwest, demonstrating a concerted effort to address the critical need for sustainable fuel sources.

Agriculture contributes nearly 10 percent to the U.S. greenhouse gas (GHG) emissions, as reported by the U.S. Environmental Protection Agency. By capturing methane from farm waste, the Tri-Cross Dairy RNG facility not only reduces these emissions but also sets a new standard for clean energy production. RNG serves as a pivotal component in the transition to more sustainable energy solutions, offering a reduction in GHG emissions by an average of 300% compared to diesel. Notably, the California Air Resources Board has recognized RNG from dairy farms as significantly cleaner than electric vehicles charged with electricity from today’s grid, assigning it an average carbon-intensity score of -330.

Clay Corbus, senior vice president for renewables at Clean Energy, emphasized the strategic importance of the new facility, stating, “We anticipate 2024 to be a pivotal year in the demand for RNG fuel in the transportation market, especially with the introduction of Cummins’ X15N natural gas engine for heavy-duty trucks. The Tri-Cross Dairy facility and our expanded production capabilities are essential in supplying low-carbon RNG to our growing network of fueling stations.”

Clean Energy’s investment in RNG production exemplifies a broader commitment to environmental stewardship and innovation in the renewable energy sector. By leveraging agricultural byproducts to create clean fuel, the company is not only reducing dependency on fossil fuels but also promoting a more sustainable and circular economy.