US-based Clean Energy Fuels Corp. and France’s Total SA Thursday signed a deal to set up a joint venture that will focus on producing renewable natural gas (RNG). Both companies will commit an initial $100-million investment for the 50:50 joint venture to build RNG production facilities. Clean Energy said the investment could be ramped up to $400 million later depending on development opportunities progress. Total will also provide credit support to build downstream infrastructure for the joint venture, including refineries and fuel stations.
RNG is produced from captured carbon emissions from dairies and can be used as an alternative transportation fuel. Major energy companies have set targets to cut greenhouse gas emissions and invest in green technology and renewable energy amid growing activists’ and investors’ pressure. In January, Total CEO Patrick Pouyanne said the company will continue investing in renewable energy investments this year as it shifts away from fossil fuels.
