Clean Energy Fuels Completes $85M RNG Facility in Texas
Clean Energy Fuels completed its renewable natural gas facility located at South Fork Dairy in Dimmitt, Texas. The facility is now producing pipeline-quality RNG and has begun injecting into the interstate natural gas pipeline. Now one of the largest RNG production plants in the country, South Fork is home to a herd of 17,500 dairy cows and has the capability to produce approximately 2.6 million gallons of low-carbon RNG annually. The facility will process up to 300,000 gallons of dairy manure each day utilizing the four anaerobic digesters on-site, along with manure processing and advanced gas conversion equipment. The RNG produced is injected directly into an on-site gas line. Financed entirely by Clean Energy, the project broke ground in July 2024 and totaled $85M. Clean Energy will receive 100 percent of the RNG fuel produced at South Fork Dairy.
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- Company Announcement: Clean Energy Fuels (CLNE) has begun injecting renewable natural gas from its new facility.
- Focus on Sustainability: This initiative highlights the company's commitment to sustainable energy solutions.
Grocery Outlet Holding Corp (GO): The stock rating increased from 40% to 70% based on its fundamentals and valuation, indicating growing interest according to Kenneth Fisher's investment strategy focused on low P/S ratios and strong profit growth.
Mayville Engineering Company Inc (MEC): Similar to Grocery Outlet, MEC's rating improved from 50% to 70%, reflecting positive changes in its underlying fundamentals and stock valuation within the Auto & Truck Parts industry.
Clean Energy Fuels Corp (CLNE): The rating for CLNE rose from 40% to 60%, suggesting a moderate level of interest based on its fundamentals and valuation in the Oil & Gas Operations sector.
About Kenneth Fisher and Validea: Kenneth Fisher, a prominent money manager and author, emphasizes the price/sales ratio for stock selection. Validea provides investment research based on strategies from renowned investors, aiming to identify stocks that outperform the market.

Contract Award: Clean Energy Fuels Corp. has been awarded a contract to design and build a hydrogen fueling station for Gold Coast Transit District (GCTD) in Ventura County, CA, which will initially support five fuel cell buses and aims to transition a fleet of 70 vehicles to zero emissions by 2040.
Funding and Support: GCTD received $12.1 million from the U.S. Department of Transportation's Federal Transit Administration to construct the hydrogen station and purchase hydrogen fuel cell electric buses, reinforcing their commitment to clean transportation.
Completion Timeline: The new hydrogen station is expected to be completed by 2027 and will be located at GCTD's Oxnard facility, enhancing the region's public transportation options.
Clean Energy's Mission: Clean Energy Fuels Corp. focuses on decarbonizing transportation through renewable natural gas (RNG) and operates a network of fueling stations across the U.S. and Canada, supporting various vehicles in reducing greenhouse gas emissions.
Earnings Performance: Clean Energy Fuels (CLNE) reported break-even earnings per share, surpassing the Zacks Consensus Estimate of a loss of $0.04, marking a 100% earnings surprise. The company has consistently exceeded EPS estimates over the last four quarters.
Revenue Growth: The company generated revenues of $106.14 million for the quarter, exceeding the Zacks Consensus Estimate by 5.77% and showing a year-over-year increase from $104.88 million.
Stock Outlook: Clean Energy Fuels shares have increased by 15.1% since the start of the year, although they have underperformed compared to the S&P 500's 16.5% gain. The stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Industry Context: The Utility - Gas Distribution industry, to which Clean Energy Fuels belongs, is ranked in the top 23% of Zacks industries, suggesting a favorable outlook. Another industry player, Northwest Natural, is expected to report a quarterly loss, highlighting varying performance within the sector.

Expansion of Hydrogen and RNG Infrastructure: Clean Energy Fuels Corp. is building a second hydrogen fueling station and starting construction on three renewable natural gas (RNG) production plants, aiming to produce 3 million gallons of RNG annually by 2026, supported by federal grants.
Investment Risks and Growth Outlook: While the expansion has positive strategic implications, investors should be cautious of execution risks related to project delays and underperformance, which could impact margins and cash flow, despite a projected revenue increase to $474.7 million by 2028.
Contract Award: Clean Energy Fuels has been awarded an $11.3 million contract to design, build, and maintain a second hydrogen fueling station for Foothill Transit in California, supporting their fleet of 357 buses.
Project Details: The new station will be located at the Arcadia bus yard, support 19 new hydrogen fuel cell buses, and is set to begin construction in mid-2026, continuing a 20-year partnership with Foothill Transit.






