Shares of Clean Energy Fuels (NASDAQ:CLNE) stock are taking off on Monday morning after the announcement of an agreement with the Los Angeles County Metropolitan Transportation Authority (Metro).
That said, this is what investors need to know about the CLNE stock deal.
- The firm said it will provide an estimated 47.5 million gallons of its renewable natural gas (RNG) “to fuel the nation’s largest transit bus fleet.”
- This move now completes the Metro’s five-year plan of moving to more low-carbon fuel sources.
- As of right now, 2,400 buses run on Clean Energy Fuel’s RNG.
- According to the release, RNG is “the first renewable and commercially available vehicle fuel made entirely from organic waste.”
- It is made from capturing methane from decomposing organic waste from places like landfills and dairies.
- Overall, “RNG reduces climate-harming greenhouse gas emissions by at least 70 percent, and even up to 300 percent depending on the source of the RNG, making it a negative carbon fuel.”
Nate Jensen, senior vice president of Clean Energy Fuels, had this to say about the CLNE stock news:
“Metro continues to lead public transportation as one of the cleanest fleets in the US, with nearly 22 million gallons of RNG delivered to Metro since 2017. With this additional commitment to fuel with Clean Energy’s RNG, Metro is accelerating its path to net zero carbon emissions through RNG and other alternative fuels.”
CLNE stock was up nearly 38% as of Monday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick Clarkson is a web editor at InvestorPlace.