Transit Fleets Make the Switch to Low-carbon RNG Fuel Inking Deals With Clean Energy
New Agreements for Clean Energy: Clean Energy Fuels Corp. has secured multiple contracts with transit agencies and municipalities to supply renewable natural gas (RNG) and upgrade fueling infrastructure, aiming to help them transition to cleaner transportation options.
Impact on Transit Fleets: The agreements will support various public transportation systems across the U.S., including Los Angeles Metro and others, by providing RNG fuel for buses and vocational vehicles, thereby contributing to sustainability goals and reducing carbon footprints.
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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.





