2011 may well be seen as the tipping point in Clean Energy’s history. At the beginning of the year, we were steadily building our traditional station networks in major metropolitan areas of the country, largely for the transit, refuse and airports/taxi markets. At the same time, America’s truck manufacturers were increasing their efforts to bring new CNG and LNG vehicles to the medium- and heavy-duty trucking market.
By the end of 2011, we had:
- Proposed, planned and initiated construction of America’s Natural Gas Highway™ to enable LNG truck fueling from coast-to-coast and borderto- border
- Received investment commitments for $450 million to build out the Highway as well as to continue construction of our regional and metropolitan station building projects
- Begun the build-out of an estimated 150 LNG fueling stations along major interstates to create the initial backbone of the Highway, with an estimated 70 stations scheduled for completion in 2012 and the balance in 2013
- Noted commitments by five major truck manufacturers to launch or expand their natural gas truck offerings
With these actions, we believe we are reaching the dream of using a domestic fuel vs. the current dependence on imported oil.
More customers, more volume, more revenue.
In brief, our revenues in 2011 grew 38% to $293 million, our volume of natural gas fuel delivered increased 27% to 156 million gallons and our assets expanded to $943 million. Besides the first five LNG stations completed for the Highway, we completed 63 CNG station and upgrade projects around the country. With stations open and underway, we are now operating in 33 states. For further information, please see the complete financial report for the year in our Form 10-K.
To accomplish this growth and manage it effectively, our organization and infrastructure are being prepared to scale. We added 326 employees at all levels from senior management to field technicians in 2011, and plan hiring more new employees in 2012. We are proudly creating new jobs in America to use America’s energy resources wisely.
Our subsidiaries are growing and performing well as they support our core activities.
IMW became a major supplier of compression equipment for Clean Energy’s robust CNG station-building program. It also sold equipment to other domestic customers, particularly leaders in the refuse industry, and now has installations in 26 countries. It introduced a new Mobile Fueling Station that acts as an all-in-one unit with compression, storage and dispensers onboard for use as a quick-start facility or for smaller fleet needs. IMW expanded its manufacturing facility in western Canada, doubled the size of its plant in China and opened a manufacturing/assembly facility in the state of Washington.
NorthStar was fully integrated into our engineering and construction group, adding its world-class cryogenic expertise in LNG fueling to our existing resources. NorthStar is key to our becoming the leader in LNG fueling and building the Highway. Its manufacturing facility in Wyoming was substantially expanded during the year to meet the significant increased demand for LNG equipment. NorthStar is expanding its operations with the goal of increasing its equipment manufacturing and construction capability from 10 LNG stations in all of 2010 to a rate of nearly two LNG stations per week in 2012.
BAF provided van conversions to national fleet customers and expanded to an increasing number of local and regional private and municipal fleets of vans, light-duty trucks and shuttles. It became the first CNG vehicle upfitter in the United States to be named a Ford Qualified Vehicle Modifier (QVM) for gaseous fuels. It also qualified the popular new Ford Transit Connect for sale in all 50 states, received an order for 672 van conversions from AT&T for 2012 and introduced a line of bi-fuel vehicles. In early 2012, BAF moved its headquarters and operations into a far larger, 91,000 square-foot facility in Dallas, Texas.
Clean Energy Renewable Fuels (CERF) upgraded and expanded biomethane production at its original McCommas Bluff Landfill facility in Dallas, Texas and launched construction of its second biomethane production facility in Canton, Michigan. CERF is pursuing multiple opportunities for biomethane projects. Adding to our transportation fuel portfolio, CERF also announced the availability of RNG-10 and RNG-20, renewable natural gas composed of natural gas blended with 10- or 20-percent biomethane and deliverable for fleet customers seeking fuel with even lower carbon/greenhouse gas emissions.
Among the many persons responsible for our success, I want to acknowledge the singular contributions of three members of our team. Mitch Pratt, our Chief Operating Officer, is ably managing daily operations across the country as well as overseeing the complex Highway station-building program. Jim Harger started with me as Clean Energy’s second employee and now acts as Chief Marketing Officer working with major trucking fleets and shippers to fill the Highway. Peter Grace, as Senior Vice President–Sales & Marketing, is relentless in expanding sales in our market segments of transit, refuse, local trucking and taxis/shuttles/airports.
Driving American has been long in coming, but I can truly say we have momentum now. President Barack Obama showed this when he celebrated the opening of our new LNG truck fueling station on the Highway serving UPS and other fleets in Las Vegas, Nevada in February 2012.
“... We, it turns out, are the Saudi Arabia of natural gas ... We’ve got to take advantage of this incredible natural resource. And think about what could happen if we do. Think about an America where more cars and trucks are running on domestic natural gas than on foreign oil ... let’s get more of these natural gas vehicles on the road ... let’s make sure all these new trucks that are running on natural gas have places to refuel ... We know how to make these trucks, but if they don’t have a place to pull in and fill up, they’ve got problems. So we’re going to keep working with the private sector to develop ... highways that have natural gas fueling stations between cities, just like the one that folks at UPS, South Coast Air and Clean Energy Fuels are opening today ... That’s a great start ....”
That says it all. Natural gas fuel for transportation in the United States has arrived — and Clean Energy is at the forefront.
Our achievements come from the collective strength and contributions of our employees, whom we thank and encourage, and from our Board of Directors, whose wise counsel and affirmation help guide our progress.I look forward to reporting to you next year what more we will achieve in 2012.
Andrew J. Littlefair
President and CEO
March 26, 2012