Greentech Advises


Greentech Advises Clean Energy on the sale of its upstream renewable natural gas operations to BP
March 3, 2017

Greentech Capital Advisors is pleased to announce the following transaction:
Exclusive financial advisor on the sale of its upstream renewable natural gas operations to

$155,000,000March 2017

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CLIENT OVERVIEW

Clean Energy Fuels Corp. (Nasdaq: CLNE) (Clean Energy) is the leading provider of natural gas fuel for transportation in North America. Clean Energy builds and operates CNG and LNG vehicle fueling stations; manufactures CNG and LNG equipment and technologies; develops renewable natural gas (RNG) production facilities; and delivers more CNG and LNG vehicle fuel than any other company in the U.S. Clean Energy is also the largest marketer and producer of RNG in North America and sells its RNG under the Redeem™ brand. Redeem™ is the cleanest transportation fuel commercially available, reducing greenhouse gas emissions by up to 70%.

* Mandated through Greentech Capital Advisors Securities, LLC

TRANSACTION OVERVIEW

  • BP p.l.c. (NYSE: BP) and Clean Energy today announced that BP will acquire the upstream portion of Clean Energy’s renewable natural gas business and sign a long-term supply contract with Clean Energy to support the firm’s continuing downstream renewable natural gas business.
  • The deal enables both companies to accelerate the growth in renewable natural gas supply and meet the growing demand of the natural gas vehicle fuel market.
  • Under terms of the agreement, BP will pay $155 million for Clean Energy’s existing biomethane production facilities, its share of two new facilities and its existing third party supply contracts for renewable natural gas. Closing the transaction is subject to regulatory approval.
  • Clean Energy will continue to have access to a secure and expanding supply to sell to the growing customer base of its Redeem™-branded renewable natural gas fuel through a long-term supply contract with BP.
  • Clean Energy, in turn, will be able to expand its Redeem customer base at its North American network of natural gas fueling stations, allowing customers to take advantage of the ease and affordability of switching to a fuel that is both renewable and can significantly reduce greenhouse gas emissions compared with diesel.
  • Clean Energy will buy renewable natural gas fuel from BP and collect royalties on gas purchased from BP and sold as Redeem at it stations. This royalty payment is in addition to any payment under BP’s contractual obligation.

Greentech Capital Advisors served as exclusive financial advisor to Clean Energy.

“Demand for renewable natural gas is growing quickly and BP is pleased to expand our supply capability in this area,” said Alan Haywood, chief executive officer of BP’s supply and trading business. “BP is committed to supporting developments towards a lower carbon future and, working with Clean Energy, we believe we will be well-positioned to participate in the growth of this lower carbon fuel in the U.S.”

“We started our Redeem fueling business from scratch less than four years ago and have grown it into a significant enterprise,” said Andrew Littlefair, Clean Energy’s president and chief executive officer. “This transaction will help to take it to the next level. BP’s investment in and focus on renewable natural gas supply will ensure that Clean Energy can meet the growing demand of our customers for low carbon, renewable fuel.”

For additional information about this transaction, please contact:

Jeff McDermott
Managing Partner
+1 (212) 946-3940
jeff@greentechcapital.com

PJ Deschenes
Partner
+1 (212) 946-3362
pjdeschenes@greentechcapital.com

Steve Megyery
Partner
+1 (212) 946-3949
steve@greentechcapital.com

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