Clean Energy Fuels Subsidiary Inks Deal With China Gas

Clean Energy Fuels (NASDAQ: CLNE  ) announced today that its wholly owned subsidiary, IMW Industries, has struck a deal to provide China Gas with up to 416 natural gas compressors and accompanying technologies. China Gas expects to construct up to 310 compressed natural gas stations for public access. The potential value of the three-year agreement is roughly $167 million. IMW has already outfitted 124 stations in China, manufacturing all of the equipment at its facility in Suzhou-Taicang. 

China Gas has already secured financing for the deal from Export Development Canada. It expects to to draw upon that agreement as needed, and has already received $5 million to purchase 29 compressors for the company's first 19 stations.

Clean Energy CEO Andrew Littlefair is encouraged by China's willingness to embrace natural gas as a transportation fuel:

China has grasped the potential of natural gas as an alternative to gasoline and diesel fuel and is aggressively building the necessary infrastructure to realize this potential. In the coming years, China Gas and its partners plan to construct the equivalent of over half of all the public access CNG stations currently available in the United States -- significant for our companies and the future of cleaner transportation in China.

Clean Energy Fuels is the largest provider of natural gas fuel for transportation in North America, while IMW Industries is the largest sole manufacturer of non-lubricated natural gas compressors in the world.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 30, 2013, at 1:08 PM, Thinkerbus wrote:

    Can you explain why China is getting funding from the Canadian Government to purchase equipment from CLNE in the U.S.??? Not at all clear why this would be the case and exactly what it is they are buying from CLNE if they plan to manufacture the equip. in China for China--very confusing article, but $167M is a good chunk of money to CLNE, so would like clarification.

  • Report this Comment On September 02, 2013, at 2:06 PM, XMFAimeeD wrote:

    ^ It was just a news brief, but your questions are good ones.

    There is more info from the EDC side of the deal here:

    http://www.newswire.ca/en/story/1216927/edc-provides-usd-250...

    Important to note that IMW is Canadian, despite being owned by CLNE. Also, even though EDC is a crown corporation, it is financially self-sufficient, per its website "Unlike most export credit agencies that rely on governmental annual appropriations, we are financially self-sufficient and operate much like a commercial institution."

    Hope that helps,

    Aimee

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