Please ensure Javascript is enabled for purposes of website accessibility

Clean Energy Fuels and Amazon Ink Agreement for Renewable Natural Gas

By Scott Levine - Updated Apr 19, 2021 at 11:10AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

You may have renewable natural gas to thank for helping deliver your next Prime package.

Amazon (AMZN 0.73%) just passed another mile marker in its drive to achieve net zero carbon across its businesses by 2040. Clean Energy Fuels (CLNE 3.04%) announced this morning that it will provide Amazon with low- and negative-carbon renewable natural gas (RNG) at 27 of its current fueling stations. And it has another 19 fueling stations that it plans to open by the end of 2021 that will also provide Amazon with RNG. In total, Clean Energy's new and future stations will supply Amazon in 15 states.

Speaking about the agreement, Andrew Littlefair, CEO of Clean Energy Fuels, said, "If the world is really going to tackle the issue of climate change, all of us need to find solutions that work both environmentally and economically, and that is exactly what this agreement supports." The company's RNG is derived from methane produced by the breakdown of organic waste in landfills, large dairy farms, and sewage plants.

Trucks at a Clean Energy Fuels station.

Image source: Clean Energy Fuels.

In addition to the fueling agreement, Clean Energy Fuels has provided Amazon with a warrant to purchase up to 53,141,755 shares of stock. With the signing of the fuel agreement, the first 13,283,445 shares of the warrant have been vested. The remaining shares will vest over time based on discretionary fuel purchases by Amazon and its affiliates, up to a total of $500 million.

The fueling agreement with Clean Energy Fuels is a logical follow-up to Amazon's action earlier this year to reduce the carbon footprint of its delivery fleet. In February, Amazon ordered more than 1,000 vehicles sourced with engines from a joint venture with Cummins and Westport Fuel Systems.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Clean Energy Fuels Corp. Stock Quote
Clean Energy Fuels Corp.
$4.75 (3.04%) $0.14, Inc. Stock Quote, Inc.
$114.33 (0.73%) $0.83
Cummins Inc. Stock Quote
Cummins Inc.
$194.52 (0.23%) $0.44
Westport Fuel Systems Inc. Stock Quote
Westport Fuel Systems Inc.
$1.02 (0.99%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.