The Strategist

Total to convert heavy trucks to natural gas

05/11/2018 - 09:37

Total and Clean Energy Fuels Corp have entered into a broad strategic agreement to convert heavy trucks to natural gas. Total agreed to buy 50.8 million shares of Clean Energy for 83.4 million US dollars. After the deal is concluded, Total will become the largest shareholder of Clean Energy, owning 25% of all issued shares.

Laurent Vincenti
Laurent Vincenti
This transaction received preliminary approval of the meeting of shareholders of Clean Energy, which was originally scheduled for May 30, 2018, but was postponed to June 8, 2018.

Clean Energy, with the support of Total, also plans to launch an innovative leasing program that involves sale of thousands of new heavy-duty vehicles on natural gas and development of necessary gas infrastructure at the Clean Energy refueling facilities.

It is assumed that this program will allow car fleets to start using heavy-duty vehicles with the cleanest engine in the world without increasing costs compared to the diesel alternative, while guaranteeing a discount on gas and a more favorable price for it than for diesel.

Total intends to provide credit support for the program for up to $ 100 million. The launch of the large-scale program is scheduled for the 3rd quarter of 2018.

 According to Patrick Pouyann√©, CEO of Total, customers and regulators all over the world require cleaner alternatives in the field of logistics and cargo transportation, especially in the market with heavy vehicles.

Natural gas can be the fuel that will suit everyone.

Total believes that there is a huge development potential in natural gas for the freight market, in particular in the United States. This is facilitated by large and inexpensive gas resources.

 Promoting the use of natural gas and increasing its share in total production of the company are part of Total's comprehensive strategy to expand its business with low carbon emissions.

Total has extensive experience working with natural gas on 5 continents, which makes the company the first of the world's largest leaders in the chain of increasing the cost of natural gas, including liquefied natural gas (LNG) in the US.

 Clean Energy is the leading supplier of natural gas to consumers and has 550 stations throughout North America, and also owns liquefied natural gas plants in California and Texas that produce LNG for freight and other markets.


< >

Friday, May 24th 2024 - 03:13 UK watchdogs fine Citigroup £61.6 mln

Friday, May 17th 2024 - 03:04 Walmart more than triples quarterly net profit