Tourmaline and Clean Energy Open New CNG Stations, Advancing Western Canada’s First Commercial-grade Natural Gas Fueling Corridor
The expanding network of fueling stations represents a significant diesel displacement opportunity by providing a reliable source of compressed natural gas (CNG) for long-haul trucks and other fleets
CALGARY, Alberta--(BUSINESS WIRE)--Tourmaline Oil Corp. (TSX: TOU) ("Tourmaline") and Clean Energy Fuels Corp. (NASDAQ: CLNE) ("Clean Energy") announced today the opening of two new compressed natural gas (CNG) fueling stations in Alberta, marking a key milestone in their continuing efforts to build Western Canada's first commercial-grade public CNG fueling network. The new locations in Calgary and Grande Prairie, along with the Edmonton station which opened in April 2023, establish a crucial transportation corridor for trucking companies converting their fleets from diesel to CNG.
Powering long-haul trucks and other fleets with CNG results in lower emissions of carbon dioxide, nitrogen oxides, sulphur dioxide and particulate matter compared to traditional diesel-powered vehicles.
“We are expanding our multi-year diesel displacement initiative by making CNG more readily available to heavy-duty trucking companies,” said Michael Rose, Chairman, President and CEO, Tourmaline. “Right here in Alberta, we have the technology, an abundance of natural gas, and now the infrastructure to help facilitate a transformative shift in the transportation sector.”
The $70 million Joint Development Agreement between Tourmaline and Clean Energy was announced in April 2023, along with their commitment to build up to 20 CNG fueling stations across Western Canada in the next five years. In just over a year, their customer base has grown to nine market-leading companies that have already collectively displaced two million litres of diesel by utilizing CNG technology.
“The adoption of CNG has continued to accelerate over the last year, as more companies recognize the benefits of displacing diesel with a reliable fuel that is easy to use and extremely cost competitive for fleets,” said Andrew Littlefair, President and CEO, Clean Energy. “The development of this critical infrastructure is perfectly timed as the important new X15N natural gas engine from Cummins is being introduced to the trucking industry to rave reviews. We expect that the combination of more fueling locations and the new engine technology, which is perfectly suited for the Canadian market, will pave the way for continued growth of CNG.”
Cummins, one of the world’s leading engine manufacturers, has recently introduced its X15N natural gas engine into the Canadian and U.S. heavy-duty truck market. Trucks with pre-production models of the X15N were tested by some of the most demanding fleets over the last year including Walmart, Werner, Knight Swift, FedEx Freight and UPS. It was found to deliver diesel-like ratings as well as durability and reliability to allow fleets to significantly reduce emissions of carbon dioxide, nitrogen oxides, sulphur dioxide and particulate matter without sacrificing capability.
Mullen Group Ltd. (Mullen Group), the first company to support the Tourmaline and Clean Energy initiative, plans to leverage the new X15N engine as it prepares to nearly double its fleet of CNG-fueled trucks.
“As one of North America's largest logistics providers, the Mullen Group is committed to being a leader in sustainability. Today we operate one of the largest CNG-powered truck fleets in the Province of Alberta, now having 19 fully operational, with plans to deploy another 15 units as soon as they become available. Our CNG fleet continues to perform well, and now with the opening of these additional fueling stations, we can position the CNG units in additional markets, providing an ESG alternative to a broader scope of customers,” said Murray Mullen, Chair, SEO and President, Mullen Group.
“Western Canada's first natural gas highway is taking shape right here in Alberta, driven by the innovative efforts of Tourmaline and Clean Energy,” said Alberta Premier Danielle Smith. “This collaboration showcases how industry-led initiatives can drive more efficient transportation solutions. Alberta is proud to support forward-thinking projects that will help create a more sustainable future for long-haul trucking across Canada.”
Once complete, the 20-station network could fuel up to 3,000 natural gas-powered trucks daily. Construction on the next CNG fueling station is set to begin in Kamloops, B.C., with Fort McMurray and Fort St. John to follow. The CNG stations are also equipped with the same infrastructure needed for renewable natural gas (RNG), making for a streamlined transformation when RNG becomes more readily available in Canada.
Visit our media kit for images, b-roll, fact sheets and videos of support from Alberta Premier Danielle Smith and Alberta Energy and Mining Minister Brian Jean.
Additional quotes:
“Having access to commercially available, compressed natural gas fueling is important to our industry and with the continued addition of accessible fueling infrastructure, we can continue to adopt natural gas fueling options across the region. At GFL, we have long recognized the benefits of utilizing this technology in our own operation and will now have the ability to replace more diesel with CNG in additional markets as infrastructure comes online.”
- Tyler Stefure, Fleet Director for Western Canada, GFL Environmental
“As a strategic supply chain partner, with more than 850 alternative-fuel vehicles globally, Martin Brower is continuing to expand our fleet of CNG-powered vehicles across Canada. Working with partners, such as Tourmaline and Clean Energy, is critical to our success in delivering on our commitment to reduce our scope 1 and 2 greenhouse gas emissions by over 50 per cent by 2030 and create a more sustainable future.”
- Amy Senter, Global Vice President of Sustainability, Martin Brower
About Tourmaline Oil Corp.
Tourmaline is Canada's largest and most active natural gas producer dedicated to producing the lowest-cost natural gas in North America. The investment-grade exploration and production company provides strong and predictable operating and financial performance through the development of three core areas in the Western Canadian Sedimentary Basin. With an existing large reserve base, decades-long drilling inventory, relentless focus on execution and cost management, and industry-leading environmental performance, Tourmaline is excited to provide shareholders with an excellent return on capital and an attractive source of income through base dividend and surplus-free cash flow distribution strategies. Visit http://www.tourmalineoil.com/ and follow @tourmalineoilcorp on LinkedIn and Facebook and @tourmalineoil on X.
About Clean Energy Fuels Corp.
Clean Energy Fuels Corp. is North America's largest provider of the cleanest fuel for the transportation market. Our mission is to reduce emissions in the transportation industry through the development and delivery of renewable natural gas (RNG), a sustainable fuel derived from organic waste. Clean Energy allows thousands of vehicles, from airport shuttles to city buses to waste and heavy-duty trucks, to reduce their amount of climate-harming greenhouse gas. We operate a vast network of fueling stations across the U.S. and Canada. Visit www.cleanenergyfuels.com and follow @ce_renewables on X.
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Currency
All amounts in this joint news release are stated in Canadian dollars unless otherwise specified.
Forward-Looking Information
This joint news release contains forward-looking information and statements (collectively, "forward-looking information") within the meaning of applicable securities laws including Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions, including without limitation information and statements about: the benefits of the joint development agreement including that the investment pursuant to the agreement will result in Western Canada’s first commercial-grade public CNG fueling network and establish a crucial transportation corridor for trucking companies converting their fleets from diesel to CNG; the number of CNG stations proposed to be constructed and the number of natural gas-powered trucks that could be fueled by such stations, the timeframe for such construction and the anticipated investment pursuant to the joint development agreement; the expectation that Mullen Group will use the network of stations to fuel its growing fleet of CNG-powered trucks; the expectations that the CNG stations will pave the way for RNG availability in the future; the timing and location for the next CNG stations that Tourmaline and Clean Energy expect to open; and the other benefits of CNG and CNG stations generally. Actual results and the timing of events could differ materially from those anticipated in the forward-looking information.
The forward-looking information made herein speak only as of the date of this joint press release and, unless otherwise required by law, neither Tourmaline nor Clean Energy undertakes any obligation to publicly update such forward-looking information to reflect subsequent events or circumstances. Additional information on these and other factors that could affect Tourmaline, or its operations or financial results, are included in Tourmaline's most recently filed Management's Discussion and Analysis (See "Forward-Looking Statements" therein), Annual Information Form (See "Risk Factors" and "Forward-Looking Statements" therein) and other reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca) or Tourmaline's website (www.tourmalineoil.com). Additionally, the reports and other documents Clean Energy files with the SEC (available at www.sec.gov) contain risk factors, which may cause actual results to differ materially from the forward-looking information contained in this joint news release.
Market, Independent Third-Party and Industry Data
Certain information contained in this joint news release relating to environmental or statistical data including the cost savings associated with fueling vehicles with CNG instead of retail diesel prices and the CO2 reduction equivalents of removing passenger vehicles from the road have been derived from market, independent third-party and industry data and is based upon, or derived from, information or estimates from government or other independent industry publications and reports. Government and industry publications and reports generally indicate that they have obtained their information from sources believed to be reliable, but neither Tourmaline nor Clean Energy has conducted its own independent verification of such information or ascertained the underlying assumptions relied upon by such sources. While Tourmaline and Clean Energy believes this data to be reliable, market and industry data is subject to variations and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any statistical survey.
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