Shares of Clean Energy Fuels (NASDAQ:CLNE) surged more than 25% in Monday’s pre-market activity after the alternative fuel supplier signed a deal to provide low and negative carbon renewable natural gas (RNG) to Amazon (NASDAQ:AMZN).
The fuel will be provided at 27 existing Clean Energy fueling stations and another 19 non-exclusive new or upgraded Clean Energy-owned stations that the company expects to be built by the end of the year. The stations will provide RNG in 15 different states, according to a press release on Monday.
And if that supply deal wasn’t enough to get investors excited, maybe the warrant that Clean Energy issued to Amazon as part of the agreement got their attention. The fuel supplier said in an SEC filing that it issued a warrant that would enable Amazon to purchase up to an aggregate of 53,141,755 shares of CLNE stock over time, up to a total of $500 million.
CLNE Stock Gains as Endowments Focus on Green Investments
As InvestorPlace pointed out earlier this year in our pick of Best Clean Energy Stocks of 2021, these stocks are the next frontier in tech investing.
Solar, hydrogen fuel cells, biodiesels and even natural gas have soared as governments look to roll out clean energy policies worldwide. Investments in green and ethical investing stocks have piqued the interest of pension funds and institutional endowments in the past year, as fund managers come under fire for holding portfolio stakes in fossil fuel companies and other global polluters.
Inside Higher Education reported on Monday that the Yale University Board of Trustees recently approved a new set of ethical investing guidelines for the university’s $31.2 billion endowment. To remain eligible for investment by Yale, companies must avoid exploration and production of fossil fuels that generate high levels of greenhouse gas emissions relative to energy supplied as compared with feasible alternatives. Also, those investments must follow best industry practices to minimize greenhouse gas emissions in their operations.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News, McKinsey & Co. and McDonald & Company Investments.