Clean Energy Fuels Corp. (NASDAQ: CLNE)

Clean Energy Fuels Corp. is a leading renewable energy company focused on the procurement and distribution of renewable natural gas (RNG) and conventional natural gas in the form of compressed natural gas (CNG) and liquefied natural gas (LNG) for the United States and Canadian transportation markets. The company specializes in transforming waste methane from sources such as dairy and livestock waste and landfills into RNG, which serves as a replacement for fossil-based transportation fuels. Clean Energy Fuels Corp. operates fueling stations, designs and builds fueling infrastructure, provides operations and maintenance services, and sells Environmental Credits generated from RNG sales.

Clean Energy Fuels Corp. generates revenue primarily through the sale of RNG and conventional natural gas as vehicle fuel in CNG and LNG forms. Additional revenue streams include the sale of Environmental Credits such as Renewable Identification Numbers (RINs) and Low Carbon Fuel Standard (LCFS) credits, operations and maintenance (O&M) services for fueling stations, station construction and engineering, and the transport and sale of CNG via virtual natural gas pipelines through its subsidiary NG Advantage, LLC. The company also serves non-vehicle customers, including marine cargo ships, aircraft, and industrial users, and leverages government tax credits, grants, and incentives to support its business model.

The company operates through the following segments: Fuel Sales, Sales of Environmental Credits, O&M Services, and Station Construction and Engineering.

• Fuel Sales: This segment involves the sale of RNG and conventional natural gas as CNG and LNG for medium and heavy-duty vehicle use. RNG is sourced from anaerobic digester gas (ADG) and landfill gas (LFG) through long-term supply offtake agreements with third-party producers, including partnerships with TotalEnergies, BP, and Maas Energy, as well as company-owned projects like South Fork. CNG is produced by compressing RNG or conventional natural gas and dispensing it at fueling stations, while LNG is created by cooling the gas to approximately negative 260 degrees Fahrenheit at liquefaction plants such as the Boron Plant in California and the Pickens Plant in Texas. These fuels are sold to fleet customers through contracts or on a per fill-up basis at public access stations.

• Sales of Environmental Credits: This segment generates revenue from the sale of RINs and LCFS credits earned when RNG is used as a transportation fuel. The company sells these credits to obligated parties under federal Renewable Fuel Standard (RFS) and state-level LCFS programs in California, Oregon, New Mexico, and Washington. Revenue from this segment fluctuates based on credit market prices, which in 2025 ranged from $2.05 to $2.50 for RINs and $40.00 to $75.50 for LCFS Credits, as well as regulatory changes and compliance verification processes.

• O&M Services: This segment provides maintenance and operational support for both company-owned and customer-owned fueling stations. Services are backed by over 200 employed technicians, a 24/7 remote monitoring center, technician training programs, and computerized maintenance management systems across the U. S. and Canada. Revenue is typically derived from fixed fees or per-gallon charges based on fuel dispensed at the station, ensuring reliable station performance and uptime for customers.

• Station Construction and Engineering: This segment encompasses the design, construction, and leasing or sale of fueling stations to customers. Since 2008, Clean Energy Fuels Corp. has served as general contractor or supervised third-party contractors to build over 470 natural gas fueling stations. Equipment installed includes compressors, storage tanks, and dispensers, with capabilities to integrate hydrogen fueling and electric vehicle charging infrastructure at station sites, although such additions may involve significant costs.

Clean Energy Fuels Corp. holds a leading position in North America’s renewable natural gas market for transportation, particularly in the volume of RNG dispensed and the number of fueling stations operated. The company estimates it provided 50% and 32% of the RNG used for transportation fuel in California and the United States, respectively, in 2025. Its competitive advantage stems from its extensive fueling infrastructure, long-standing customer relationships, and exclusive access to dispensers that enable Environmental Credit generation— a benefit it believes no other participant matches in scale. While competing with diesel, alternative fuels like renewable diesel and hydrogen, and other natural gas providers, the company leverages its first-mover status and integrated business model to maintain market leadership.

Clean Energy Fuels Corp. serves fleet vehicle operators across heavy-duty trucking, airports, refuse collection, public transit, industrial and institutional energy users, and government fleets. Notable customers include Amazon, Pepsi Frito-Lay, FedEx, Anheuser-Busch, USPS, UPS, Kroger, KeHe Distributors, Kenan Advantage Group, Estes Express, Waste Management, Republic Services, Waste Connections, GFL Environmental, Los Angeles County Metropolitan Transit Authority, New York MTA, and Phoenix Transit. The company also supplies LNG to customers in rocket propulsion, oil fields, marine, and rail applications, and provides CNG through virtual pipelines to industrial users without direct pipeline access via NG Advantage.