Total and Clean Energy Fuels Corp. have entered into a broad strategic agreement to drive deployment of new natural gas heavy-duty trucks.
Paris/France; Newport Beach/USA — The French company has agreed to purchase up to 50.8 million shares of Clean Energy’s common stock for $ 83.4 million, to become Clean Energy’s largest stockholder with ownership of 25 % of the company's outstanding shares of common stock. This transaction is subject to the approval of its stockholders’ meeting, which was originally scheduled for May 30, 2018 and which will be postponed to June 8, 2018.
The partners also plan to launch a leasing program that is intended to place thousands of new natural gas heavy-duty trucks on the road and fueling at Clean Energy stations. Total intends to provide up to $ 100 million of credit support for the program, which the companies expect to launch in Q3 2018.
As customers and regulators around the world are demanding cleaner transportation alternatives, particularly in the heavy-duty market, natural gas could become the fuel of choice, said Patrick Pouyanné, Chairman and CEO of Total. He believes in a strong development opportunity in the natural gas for transportation market in particular in the United States which would benefit from unique low-cost gas resources.
Promoting the use of natural gas and increasing its share in its overall output are part of Total’s integrated strategy to expand its low carbon businesses.