GE Capital and Clean Energy Form Strategic Alliance to Accelerate Adoption
of Natural Gas in Trucking Industry
IRVING, Texas & NEWPORT BEACH, Calif. -- October 21, 2013
GE Capital’s Transportation Finance business and Clean Energy Fuels
Corp.[NASDAQ: CLNE], the largest provider of natural gas fuel for
transportation in North America, have entered into a strategic alliance to
accelerate the conversion of heavy-duty trucking fleets from diesel to
cleaner-burning, less-expensive natural gas.
To take advantage of this opportunity, truck fleet operators will first work
with Clean Energy to develop natural gas fueling contracts, and will then
apply for loans and leases, including fair market value leases, from GE
Capital to acquire trucks from manufacturers that produce commercial natural
gas vehicles (NGVs). Clean Energy will then help offset the monthly cost of
newly-acquired NGVs to make it consistent with the cost of a diesel truck, if
the customer makes a fuel commitment.
“We think this alliance will help to open up the natural gas market for
long-haul operators,” said Dan Clark, president and general manager of GE
Capital, Transportation Finance. “The alliance will support the parties’
mutual goal of reducing the financial impact of transitioning to natural gas
and lowering the industry’s environmental footprint.”
Class 8, or heavy-duty, trucks can use both compressed natural gas (CNG) and
liquefied natural gas (LNG). Both CNG and LNG cost significantly less than
diesel — a key factor considering that fuel comprises nearly 40% of a typical
over-the-road carrier’s operational costs.
Two of the factors that had delayed the transition to natural gas in the
over-the-road trucking industry were related to technology and infrastructure.
With the ongoing refinement and expanded availability of natural gas engines
by commercial vehicle manufacturers and the 400+ natural gas fueling stations
owned, operated, maintained and/or supplied by Clean Energy throughout the
U.S. and Canada, those issues are being addressed.
“Together with GE Capital, we’re breaking down the barriers to entry that may
have prevented some fleet owners from making the transition to natural gas,”
said Andrew J. Littlefair, president and CEO of Clean Energy. “Our goal is to
work with fleet operators to achieve a one-year payback on the incremental
cost of natural gas heavy-duty trucks — and our alliance with GE Capital is
another tool in achieving this important goal.”
Today’s announcement expands the existing relationship between Clean Energy
and GE Capital by building on two previous agreements between the companies to
develop the nation’s natural gas fueling infrastructure.
About Natural Gas Vehicles
There are more than 13 million natural gas vehicles in use worldwide,
according to Clean Energy. Moreover, 25% of all new buses and 60% of refuse
trucks currently on order nationwide will be powered by natural gas.
Here are some additional facts about natural gas from Clean Energy:
*Natural gas currently costs about $1.50 less per gallon than diesel or
gasoline, depending upon local prices.
*Vehicles that run on natural gas emit up to 30% less greenhouse gas
emissions than gasoline or diesel vehicles.
*Nearly all natural gas consumed in North America is produced domestically.
*There are more than 1,100 natural gas fueling stations in the U.S. — and
about half of them are open to the public.
About Clean Energy Fuels Corp.
Clean Energy Fuels Corp. (NASDAQ: CLNE) is the largest provider of natural gas
fuel for transportation in North America. They build and operate compressed
natural gas (CNG) and liquefied natural gas (LNG) fueling stations;
manufacture CNG and LNG equipment and technologies in addition to developing
renewable natural gas (RNG) production facilities. For more information, visit
About GE Capital, Transportation Finance
Located in Irving, TX, GE Capital, Transportation Finance provides commercial
truck and trailer financing to dealers, manufacturers and end-users throughout
the U.S. It’s part of GE Capital’s Equipment Finance businesses, which also
includes Vendor Finance, Dealer Finance and Healthcare Financial
Services-Equipment Finance. For more information, visit
GE Capital offers consumers and businesses around the globe an array of
financial products and services. For more information, visit www.gecapital.com
or follow company news via Twitter (@GECapital).
GE (NYSE: GE) works on things that matter. The best people and the best
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visit the company's website at www.ge.com.
This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 that involve risks, uncertainties and assumptions,
including statements about the deployment of natural gas vehicles, the
benefits of natural gas relative to diesel fuel, and the potential payback on
the incremental cost of natural gas heavy-duty trucks. Actual results and the
timing of events could differ materially from those anticipated in these
forward-looking statements as a result of several factors, including, but not
limited to, the performance, availability and benefits of natural gas trucks
relative to diesel trucks and the price of natural gas vehicle fuel relative
to diesel fuel. The forward-looking statements made herein speak only as of
the date of this press release and, unless otherwise required by law, Clean
Energy undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances. Additionally, the
reports and other documents Clean Energy files with the SEC (available at
www.sec.gov) contain risk factors, which may cause actual results to differ
materially from the forward-looking statements contained in this news release.
Important Notice: Nothing herein shall be construed as (i) an approval or
commitment to finance or provision of other service by GE Capital to any
person; and all transactions are subject to final investment/credit approval
by GE Capital and the execution of mutually satisfactory definitive
documentation; (ii) any guarantee or promise of pricing/financing terms or
availability thereof which may fluctuate or cease to be available depending on
any change in the leasing or lending market or financial, banking or capital
markets conditions; (iii) tax, business, accounting, financial or legal
advice; or (iv) any guarantee or promise of profitability or generation of
revenue of any kind whatsoever.
Copyright © 2013 General Electric Capital Corporation. All rights reserved.
“GE,” “General Electric Company,” “General Electric,” “General Electric
Capital Corporation,” the GE Logo, and various other marks and logos used
herein are registered trademarks, trade names and service marks of General
Electric Company. You may not use, reproduce, or redistribute any trademark or
trade name without the written permission of GE.
GE Capital, Americas
Lisa Tibbitts, 203-956-4582
Patric Rayburn, 949-437-1411
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