Shares of natural gas fuel company Clean Energy Fuels (CLNE -2.88%) jumped as much as 17.2% in trading on Wednesday after reporting fourth-quarter 2020 financial results. Shares closed the day 15.2% higher.
Revenue actually fell 37.3% to $75.0 million as revenue from tax credits for alternative fuel credits dropped. A better indicator of the business's momentum is the 7% decrease in gallons delivered to 96.0 million, which points to the continuing impact of COVID-19. Net loss for the quarter was $2.6 million, or $0.01 per share.
Overshadowing financial results was an announcement today that Clean Energy Fuels will work with BP (BP -1.25%) to "develop, own and operate new renewable natural gas facilities" at agriculture facilities around the world. BP will provide $50 million to the effort.
The last few months have been highlighted by a lot of excitement around new partnerships to bring renewable natural gas to the market. That's because renewable natural gas is being classified as a carbon-negative fuel course in California, making its value very high to the state's low-carbon fuel standard. It will take time for Clean Energy Fuels to ramp up production and generate significant revenue from credits related to the fuel, but when it does, this could be a highly profitable renewable energy stock.