Clean Energy Fuels Corp. (CLNE): Business Model Canvas [11-2024 Updated]

In an era where sustainability is paramount, Clean Energy Fuels Corp. (CLNE) stands at the forefront of the renewable energy revolution with its innovative business model. By focusing on renewable natural gas (RNG) production and distribution, the company not only provides cleaner fuel alternatives but also fosters strategic partnerships and robust customer relationships. This blog post delves into the intricacies of CLNE's Business Model Canvas, exploring how its key activities, resources, and value propositions position it as a leader in the clean energy sector. Read on to discover the driving forces behind CLNE's success and its commitment to a sustainable future.

Clean Energy Fuels Corp. (CLNE) - Business Model: Key Partnerships

Collaborations with TotalEnergies and BP for RNG projects

Clean Energy Fuels Corp. maintains strategic partnerships with TotalEnergies and BP to enhance its renewable natural gas (RNG) production capabilities. Under the joint venture agreements, the company oversees day-to-day operations and receives operational and management fees. In the three months ended September 30, 2024, Clean Energy recognized management and O&M fee revenue of $0.7 million, with a total of $2.3 million for the nine months ended September 30, 2024.

As of September 30, 2024, the company had management and O&M fee receivables of $0.4 million from the joint ventures.

Partnerships with vehicle manufacturers for clean fuel adoption

Clean Energy Fuels collaborates with various vehicle manufacturers to promote the adoption of clean fuel technologies. This partnership enables the company to expand its market presence and ensure that vehicles are compatible with RNG solutions. The specific financial impacts of these partnerships are not detailed in the current reports, but they play a crucial role in the company's strategy for increasing RNG usage in transportation.

Joint ventures to enhance RNG production capacity

In 2024, Clean Energy Fuels entered a joint development agreement with Maas Energy Works, LLC, to develop RNG production projects at dairy farms. The company plans to invest up to $132 million in this initiative, which is expected to yield significant RNG output for vehicle fueling. As of September 30, 2024, Clean Energy had already invested $4.1 million into this joint venture.

Additionally, the bp joint venture has seen a capital call of $135.9 million, with both Clean Energy and BP contributing $67.95 million each. The investment in the bp joint venture as of September 30, 2024, was reported at $211.8 million.

Relationships with government agencies for environmental credits

Clean Energy Fuels actively engages with government agencies to secure environmental credits, including the Renewable Identification Numbers (RINs) and Low Carbon Fuel Standard (LCFS) credits. For the nine months ended September 30, 2024, the company reported RIN revenue of $29.4 million, an increase from $16.7 million in the same period of the previous year. The company also expects to benefit from federal tax credits as part of the Inflation Reduction Act, enhancing its financial positioning in the renewable energy market.

Partnership Type	Partner	Investment/Revenue (in millions)	Notes
Joint Venture	TotalEnergies	$2.3	Management and O&M fees for 9 months ended Sept 30, 2024
Joint Venture	BP	$67.95	Investment in bp joint venture as of Dec 31, 2023
Joint Development Agreement	Maas Energy Works	$132	Planned investment for RNG production projects
Government Agency Relationships	Various	$29.4	RIN revenue for 9 months ended Sept 30, 2024

Clean Energy Fuels Corp. (CLNE) - Business Model: Key Activities

Production and distribution of renewable natural gas (RNG)

Clean Energy Fuels Corp. is involved in the production and distribution of RNG, which is a significant part of its operations. As of September 30, 2024, the company sold approximately 174.7 million gallons of gasoline equivalent (GGEs) of RNG, up from 168.7 million GGEs in the same period of 2023. The company has invested a total of $284.9 million in developing ADG RNG production facilities, including $242.2 million contributed to joint ventures.

Construction and operation of vehicle fueling stations

Clean Energy Fuels Corp. designs, builds, and operates public and private vehicle fueling stations across the United States and Canada. For 2024, the company plans to allocate approximately $60.0 million in capital expenditures, primarily for the construction of fueling stations. The station construction sales for the nine months ended September 30, 2024, reached $19.1 million, compared to $17.5 million in the same period of 2023.

Year	Station Construction Sales (in millions)
2023	17.5
2024 (Nine Months Ended)	19.1

Selling and servicing natural gas fueling equipment

The company also sells and services natural gas fueling equipment. The service revenue for the nine months ended September 30, 2024, increased to $44.2 million, representing 14.4% of total revenue, compared to $41.6 million or 13.1% of total revenue for the same period in 2023. The service cost of sales for the same period increased to $28.5 million, which is 9.3% of total revenue.

Period	Service Revenue (in millions)	Service Cost of Sales (in millions)
2023 (Nine Months Ended)	41.6	25.2
2024 (Nine Months Ended)	44.2	28.5

Engaging in regulatory compliance and securing environmental credits

Clean Energy Fuels Corp. actively engages in regulatory compliance and secures environmental credits by selling RNG in the form of CNG and LNG. As of September 30, 2024, the company generated $29.4 million from Renewable Identification Numbers (RIN Credits) and $6.1 million from Low Carbon Fuel Standard (LCFS) Credits. The total revenue from environmental credits has shown a significant increase, reflecting the company's commitment to sustainability and compliance with environmental regulations.

Period	RIN Revenue (in millions)	LCFS Revenue (in millions)
2023 (Nine Months Ended)	16.7	7.6
2024 (Nine Months Ended)	29.4	6.1

Clean Energy Fuels Corp. (CLNE) - Business Model: Key Resources

Extensive network of fueling stations across the U.S. and Canada

As of September 30, 2024, Clean Energy Fuels Corp. operates a network of approximately 575 fueling stations, with a significant presence in both the United States and Canada, facilitating the distribution of renewable natural gas (RNG) and compressed natural gas (CNG).

Proprietary technology for RNG production

Clean Energy has invested approximately $284.9 million in the development of anaerobic digestion (ADG) RNG production facilities, with an anticipated capital expenditure of up to $65 million in 2024 for further development. This proprietary technology positions the company as a leader in the RNG market, enhancing its competitive edge.

Experienced workforce in clean energy solutions

The company employs a skilled workforce with expertise in clean energy solutions, contributing to operational efficiency and innovation. As of September 30, 2024, Clean Energy Fuels Corp. reported total employees numbering around 600, ensuring that the company can maintain high standards in service delivery and technological advancement.

Financial resources for capital expenditures and operational needs

As of September 30, 2024, Clean Energy Fuels Corp. reported total cash and cash equivalents of $243.5 million. The company has total indebtedness of approximately $303.3 million, with expected interest payments of about $29.3 million for 2024. The financial stability allows for ongoing investments in infrastructure and technology.

Key Financial Metrics	As of September 30, 2024
Total Fueling Stations	575
Investment in RNG Production Facilities	$284.9 million
2024 Anticipated Capital Expenditure	$65 million
Number of Employees	600
Cash and Cash Equivalents	$243.5 million
Total Indebtedness	$303.3 million
Expected Interest Payments for 2024	$29.3 million

Clean Energy Fuels Corp. (CLNE) - Business Model: Value Propositions

Providing cleaner fuel alternatives to reduce carbon emissions

Clean Energy Fuels Corp. focuses on offering renewable natural gas (RNG) and compressed natural gas (CNG) as cleaner alternatives to traditional fossil fuels. In the nine months ended September 30, 2024, the company generated $243.2 million from volume-related product revenue, with a notable increase attributed to rising Renewable Identification Numbers (RIN) revenue, which surged by $12.7 million compared to the previous year.

Comprehensive fueling solutions for medium and heavy-duty vehicles

CLNE provides integrated fueling solutions specifically designed for medium and heavy-duty vehicles. As of September 30, 2024, the company reported total revenue of $306.5 million, with product revenue making up approximately 85.6% of this total. The company operates over 550 fueling stations across North America, enabling significant access for fleet operators.

Revenue Source	Q3 2023 (in millions)	Q3 2024 (in millions)
Product Revenue	$81.3	$89.9
Service Revenue	$14.3	$15.0
Total Revenue	$95.6	$104.9

Ability to generate environmental credits for customers

CLNE enables its customers to earn environmental credits through the sale of RNG. In the third quarter of 2024, RIN revenue increased to $11.1 million, up from $6.8 million in the same period of 2023. This revenue stream is supported by various government programs that incentivize the use of cleaner fuel alternatives.

Commitment to sustainability and renewable energy development

Clean Energy Fuels is committed to sustainability, with plans to invest approximately $65.0 million in the development of anaerobic digestion (ADG) RNG production facilities. As of September 30, 2024, the company had invested a total of $284.9 million in RNG production facilities, demonstrating a strong alignment with renewable energy development.

Clean Energy Fuels Corp. (CLNE) - Business Model: Customer Relationships

Strong focus on service and support for fleet customers

Clean Energy Fuels Corp. emphasizes exceptional service and support for its fleet customers, which include major transportation companies that rely on natural gas as a fuel source. The company reported service revenue of $44.2 million for the nine months ended September 30, 2024, representing a 14.4% increase compared to $41.6 million in the same period in 2023.

Building long-term partnerships with vehicle operators

Clean Energy Fuels Corp. actively works to establish long-term partnerships with vehicle operators by offering tailored solutions and support. The company has invested approximately $284.9 million in the development of RNG production facilities, which will enhance its service offerings to customers.

Offering incentives and credits to encourage RNG adoption

Incentives play a crucial role in Clean Energy Fuels Corp.'s strategy to promote Renewable Natural Gas (RNG) adoption. The company generated $17.8 million in Alternative Fuel Tax Credit (AFTC) revenue for the nine months ended September 30, 2024, up from $15.0 million in the same period in 2023. Additionally, the company's joint development agreement with Maas Energy Works allows for exclusive rights to develop RNG projects, further enhancing its incentive offerings.

Engaging in educational initiatives about clean fuel benefits

Clean Energy Fuels Corp. engages in educational initiatives to inform customers about the benefits of clean fuels. This includes outreach programs and partnerships designed to increase awareness and encourage the transition to RNG. The company’s efforts are reflected in its increasing fuel volume, with RNG sales reaching 174.7 million GGEs for the nine months ended September 30, 2024, compared to 168.7 million GGEs in the same period in 2023.

Metric	2023 (Nine Months)	2024 (Nine Months)
Service Revenue	$41.6 million	$44.2 million
Alternative Fuel Tax Credit Revenue	$15.0 million	$17.8 million
RNG Sales Volume (GGEs)	168.7 million	174.7 million
Total Investment in RNG Facilities	$242.2 million	$284.9 million

Clean Energy Fuels Corp. (CLNE) - Business Model: Channels

Direct sales through owned fueling stations

As of September 30, 2024, Clean Energy Fuels Corp. reported product revenue of $89.9 million, with fuel sales contributing significantly to this figure. The company operates numerous fueling stations across North America, which serve as critical points for direct sales. This segment accounted for approximately 85.7% of total revenue for the three months ended September 30, 2024, illustrating the importance of these stations in their overall business model.

Online platforms for customer engagement and service requests

Clean Energy Fuels has enhanced its online presence to facilitate customer engagement. The company utilizes digital platforms to streamline service requests and provide information about fuel options and pricing. In the nine months ended September 30, 2024, service revenue increased to $44.2 million, representing 14.4% of total revenue, compared to $41.6 million, or 13.1%, for the same period in 2023.

Partnerships with trucking companies and fleet operators

The company has established strategic partnerships with various trucking companies and fleet operators to promote the use of renewable natural gas (RNG). These partnerships are crucial for expanding the customer base and increasing fuel sales. For instance, the company reported an increase in RIN revenue of $12.7 million for the nine months ended September 30, 2024, attributed to higher shares and average RIN prices, indicating successful collaborations in the trucking sector.

Government programs promoting renewable fuels

Clean Energy Fuels leverages government programs that incentivize the use of renewable fuels. The company benefits from various federal, state, and local tax credits, including the Alternative Fuel Tax Credit (AFTC), which amounted to $17.8 million for the nine months ended September 30, 2024. These programs not only enhance revenue but also support the broader adoption of clean energy solutions in the transportation sector.

Channel	Contribution to Revenue (2024)	Notes
Direct sales through owned fueling stations	$89.9 million (85.7% of total revenue)	Key points for customer transactions and fuel sales.
Online platforms	Service revenue: $44.2 million (14.4% of total revenue)	Facilitates customer engagement and service requests.
Partnerships with trucking companies	RIN revenue: $12.7 million increase	Expands customer base and promotes RNG usage.
Government programs	AFTC: $17.8 million	Incentivizes renewable fuel adoption.

Clean Energy Fuels Corp. (CLNE) - Business Model: Customer Segments

Medium and heavy-duty vehicle fleets in transportation sector

Clean Energy Fuels Corp. primarily serves medium and heavy-duty vehicle fleets, which are significant consumers of natural gas as an alternative fuel. The company reported that it sold approximately 174.7 million gasoline gallon equivalents (GGEs) in the nine months ended September 30, 2024, a slight increase from 168.7 million GGEs in the same period of 2023. This growth in fuel volume is critical as it reflects the company's increasing penetration in the transportation sector, where fleets are transitioning to cleaner fuel options.

Municipalities and government agencies focused on sustainability

Clean Energy Fuels Corp. actively engages with municipalities and government agencies that prioritize sustainability initiatives. The company has established contracts for the sale of renewable natural gas (RNG) and has participated in programs that support governmental goals for reducing greenhouse gas emissions. Notably, the federal Alternative Fuel Excise Tax Credit (AFTC) has been a significant incentive for these customers, with the company recognizing approximately $17.8 million in AFTC revenue for the nine months ended September 30, 2024, compared to $14.9 million in the same period of 2023.

Companies seeking to comply with environmental regulations

Companies in various sectors that need to comply with stringent environmental regulations represent a vital customer segment for Clean Energy Fuels Corp. The demand for RNG and natural gas solutions is driven by regulatory frameworks aimed at lowering carbon footprints. In the nine months ended September 30, 2024, the company reported total revenue of $306.5 million, with a substantial portion arising from customers motivated by regulatory compliance. The company's offerings, including RINs and LCFS credits, support these companies in meeting their regulatory obligations.

Industries transitioning to cleaner energy solutions

Industries undergoing a transition to cleaner energy solutions form another key customer segment. Clean Energy Fuels Corp. has seen a shift in demand from traditional fossil fuels to alternative fuels, particularly in sectors such as marine transportation and logistics. The company reported that its product revenue for the three months ended September 30, 2024, amounted to $89.9 million, an increase attributed to greater bulk fuel sales and an expansion in customer base within these transitioning industries.

Customer Segment	Key Metrics	Revenue Impact	Growth Trends
Medium and heavy-duty vehicle fleets	174.7 million GGEs sold (2024)	Part of total revenue of $306.5 million	Increased fuel volume from 168.7 million GGEs (2023)
Municipalities and government agencies	AFTC revenue: $17.8 million (2024)	Supports sustainability initiatives	Growing participation in sustainability programs
Companies complying with regulations	Part of customer base for RINs and LCFS credits	Substantial contribution to total revenue	Increased demand due to regulatory pressure
Industries transitioning to cleaner energy	Total product revenue: $89.9 million (Q3 2024)	Driven by increased bulk fuel sales	Expansion in customer base within transitioning sectors

Clean Energy Fuels Corp. (CLNE) - Business Model: Cost Structure

Significant capital expenditures for fueling station construction

Clean Energy Fuels Corp. plans to allocate approximately $60 million in capital expenditures for 2024, primarily for the construction of fueling stations, IT software, and LNG plant costs .

Operating costs related to RNG production and distribution

The company reported a product cost of sales of $184.2 million for the nine months ended September 30, 2024, which represents a decrease from $240.7 million in the same period in 2023. This cost accounted for 60.1% of total revenue for the nine months ended September 30, 2024. Additionally, the service cost of sales increased to $28.5 million for the same period.

Research and development expenses for technology improvements

Research and development expenses are included in the overall operating costs, but specific figures for R&D spending are not separately disclosed. However, the company continues to invest in technology improvements as part of its overall strategy.

Administrative and marketing expenses to support customer acquisition

For the nine months ended September 30, 2024, selling, general, and administrative expenses amounted to $83.4 million, a decrease from $87.3 million in the same period of 2023. This decrease was primarily attributed to a reduction in stock-based compensation expenses.

Cost Category	2023 Amount (in millions)	2024 Amount (in millions)	Percentage of Total Revenue (2024)
Capital Expenditures	-	60.0	-
Product Cost of Sales	240.7	184.2	60.1%
Service Cost of Sales	25.2	28.5	9.3%
Selling, General, and Administrative	87.3	83.4	-

Clean Energy Fuels Corp. (CLNE) - Business Model: Revenue Streams

Sales of renewable natural gas and conventional natural gas

For the nine months ended September 30, 2024, Clean Energy Fuels Corp. reported product revenue of $262.3 million, which represents 85.6% of total revenue. This is a decrease from $276.7 million (86.9% of total revenue) for the same period in 2023. The decline in product revenue was primarily attributed to lower average prices for fuel sold, despite an increase in total GGEs (gasoline gallon equivalents) of fuel sold.

Period	Product Revenue ($ millions)	Total Revenue ($ millions)	Percentage of Total Revenue (%)
Q3 2023	81.3	95.6	85.0
Q3 2024	89.9	104.9	85.7
9M 2023	276.7	318.3	86.9
9M 2024	262.3	306.5	85.6

Environmental credits (RINs and LCFS credits)

In the nine months ended September 30, 2024, Clean Energy Fuels Corp. recognized RIN (Renewable Identification Number) revenue of $29.4 million, compared to $16.7 million in the same period in 2023, reflecting an increase of $12.7 million. Conversely, LCFS (Low Carbon Fuel Standard) credits generated $6.1 million in revenue, down from $7.6 million in the previous year, indicating a decrease of $1.5 million.

Credit Type	9M 2023 Revenue ($ millions)	9M 2024 Revenue ($ millions)	Change ($ millions)
RIN Credits	16.7	29.4	+12.7
LCFS Credits	7.6	6.1	-1.5

Service revenue from operations and maintenance contracts

Service revenue for the nine months ended September 30, 2024, increased to $44.3 million, accounting for 14.4% of total revenue, compared to $41.7 million (13.1% of total revenue) during the same period in 2023. This growth is mainly due to an increase in GGEs serviced.

Period	Service Revenue ($ millions)	Percentage of Total Revenue (%)
Q3 2023	14.3	15.0
Q3 2024	15.0	14.3
9M 2023	41.7	13.1
9M 2024	44.3	14.4

Construction and installation services for fueling infrastructure

Revenue from station construction sales for the nine months ended September 30, 2024, amounted to $19.1 million, an increase from $17.5 million in the same period of 2023. This reflects a growing demand for infrastructure as Clean Energy Fuels Corp. expands its operations.

Period	Construction Revenue ($ millions)
9M 2023	17.5
9M 2024	19.1

Updated on 16 Nov 2024

Resources:

1. Clean Energy Fuels Corp. (CLNE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Clean Energy Fuels Corp. (CLNE)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Clean Energy Fuels Corp. (CLNE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.