-Tourmaline and Clean Energy announce a $70 million joint development agreement to build CNG stations in Western Canada
The investment will establish a commercial natural gas heavy truck fueling network throughout Western Canada
CALGARY, AB, April 18, 2023 /PRNewswire/ -- Tourmaline Oil Corp. (TSX: TOU) ("Tourmaline") and Clean Energy Fuels Corp. (NASDAQ: CLNE) ("Clean Energy") today announced a $70 million Joint Development to build and operate a network of compressed natural gas (“CNG”) stations along major highway corridors throughout Western Canada. Through this 50-50 shared investment, Tourmaline and Clean Energy expect to build and commission up to 20 CNG stations over the next five years, allowing heavy trucks and other commercial transportation fleets operating in the area to make the transition to the use of CNG, a lower carbon alternative to gasoline and diesel. Clean Energy will operate the stations. One of the largest logistics companies in North America, Mullen Group Ltd. ("MullenGroup"), has signaled its support for the initiative as an early adopter and hopes to use the network of stations to fuel its growing fleet of CNG powered trucks.
"Tourmaline is the largest natural gas producer in Canada, and innovation is at the heart of everything we do. Therefore, this partnership with Clean Energy is a natural fit," said Michael Rose, Tourmaline President and CEO. . "At all of our operations, we have achieved significant emission reductions and cost savings by replacing the highest-emitting fuels with natural gas. Through this exciting initiative, we can help the transportation industry do the same."
This initiative will develop the critical infrastructure needed to support the adoption of low carbon natural gas fuels that are commercially available today. The use of this abundantly produced and easily distributed domestic resource is expected to result in significant reductions in carbon dioxide (CO) emissions and cost savings for the transportation industry in Canada. Currently, fueling vehicles with CNG generates cost savings of up to 50% compared to retail diesel prices, on an energy equivalent basis. These CNG stations also pave the way for future renewable natural gas (RNG) availability, as the same filling station infrastructure that dispenses CNG can be used to dispense RNG.
"Clean Energy currently operates the most extensive network of natural gas fueling stations and is the largest distributor of RNG in North America. We continue to invest in upstream RNG production and the fueling infrastructure necessary to provide the industry with trucking a cleaner operating alternative," said Andrew Littlefair, Chairman and CEO of Clean Energy. "This new partnership with Tourmaline will provide Canada's trucking industry with an affordable, convenient and sustainable path to net zero and contribute to Canada's overall climate change goal.
"As one of the largest logistics providers in North America, Mullen Group is committed to being a leader in sustainability. We are excited to support this initiative. We have already made a significant investment in CNG trucks and are very confident that this Technology will play an important role in decarbonising our industry," said Murray Mullen, Mullen Group Chairman, CEO & CEO.
Based on the anticipated commissioning of up to 20 stations over the next five years, approximately 3,000 natural gas trucks could be fueled by CNG every day, resulting in a reduction of approximately 72,800 tons of CO equivalent per year. This is equivalent to removing 15,690 passenger vehicles from circulation. As future demand increases, the capacity of these stations can be expanded and new stations added, resulting in further improvement in environmental performance.
"This is an exciting development for Alberta's energy and transportation industries and a big step toward a lower emissions future for all Canadians," said Alberta Premier Danielle Smith. "As Tourmaline and Clean Energy collaborate to make CNG readily available for heavy-haul trucks, we applaud their innovative thinking and support this free-market approach to significantly reduce emissions."
The first station expected to be jointly owned under the agreement, located north of Edmonton, is operational and well positioned for heavy-haul routes with proximity to key customers and stakeholders. The next stations that Tourmaline and Clean Energy expect to commission in the first half of 2024 are anticipated to be located within the municipalities of Calgary and Grande Prairie in Alberta and Kamloops, B.C.
About Tourmaline Oil Corp.
Tourmaline is Canada's largest and most active natural gas producer dedicated to producing the lowest cost, lowest emissions 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 main areas in the sedimentary basin of western Canada. With a large existing reserve base, decades of drilling inventory, relentless focus on execution and cost management, and industry-leading environmental performance, Tourmaline is pleased to offer shareholders excellent return on capital and a attractive source of income through dividend base and surplus free cash flow distribution strategies. Visit www.tourmalineoil.com and follow @tourmalineoilcorp on Linkedin and Facebook and @tourmalineoil on Twitter.
About Clean Energy Fuels Corp.
Clean Energy Fuels Corp. is North America's largest provider of cleaner fuel to the transportation market. Our mission is to reduce emissions in the transportation industry through the development and supply of renewable natural gas (RNG), a sustainable fuel derived from organic waste. Clean Energy enables thousands of vehicles, from airport shuttles to city buses to garbage and heavy trucks, to reduce their amount of climate-damaging greenhouse gases. We operate a vast network of service stations throughout the US and Canada. Visit www.cleanenergyfuels.com and follow @ce_renewables on Twitter.
For more information, contact:
Tourmaline Oil Corp.Michael RosePresident, President and CEO(403) 266-5992
Tourmaline Oil Corp.Brian RobinsonVice President, Chief Financial Officer (403) 767-3587; firstname.lastname@example.org
Tourmaline Oil Corp.Scott KirkerDirector legal(403) 767-3593; email@example.com
Tourmaline Oil Corp. Jamie Heard Director, Capital Markets (403) 767-5942; firstname.lastname@example.org
Tourmaline Oil Corp.Suite 2900, 250 – 6th Avenue S.W.Calgary, Alberta T2P 3H7Tel.: (403) 266-5992; Facsimile: (403) 266-5952E-mail: email@example.comSitio web: www.tourmalineoil.com
For specific media inquiries about Clean Energy, please contact:
Clean Energy Fuels Corp.Raleigh GerberDirector, comunicaciones corporativas949-437-1397; firstname.lastname@example.org
Notices to the reader
All amounts in this joint press release are expressed in Canadian dollars, unless otherwise specified.
This joint press 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, but not limited to, information and statements about: the benefits of the joint development agreement, including that investment pursuant to the agreement will result in a commercial heavy truck fueling network to natural gas throughout Western Canada and the critical infrastructure necessary to support the adoption of low-carbon natural gas fuels and result in significant CO2 emission reductions and cost savings for the transportation industry in Canada, including reduction amounts and savings; the number of CNG stations proposed to be built, the timeframe for such construction, and the anticipated investment under the joint development agreement; the expectation that the Mullen Group will use the network of stations to fuel its growing fleet of CNG trucks; expectations that CNG stations will pave the way for future RNG availability; the timing and location of the next CNG stations that Tourmaline and Clean Energy hope to open; and the environmental and other benefits of CNG and CNG Stations in general. Actual results and the timing of events could differ materially from those anticipated in the forward-looking information. The forward-looking information contained herein speaks only as of the date of this joint press release and, unless otherwise required by law, neither Tourmaline nor Clean Energy undertake any obligation to publicly update such forward-looking information to reflect subsequent events or circumstances. Additional information about these and other factors that could affect Tourmaline, or its operations or financial results, is included in Tourmaline's most recently filed Management's Report and Analysis (see "Forward-Looking Statements" therein), Annual Information Form (see "Risk Factors" and "Forward-Looking Statements" therein) and other reports on file with the applicable securities regulatory authorities and can be accessed through the SEDAR website (www.sedar.com) or the website of Tourmaline (www.tourmalineoil.com). In addition, the reports and other documents that Clean Energy files with the SEC (available at www.sec.gov) contain risk factors that could 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 in this joint press release related to environmental or statistical data, including cost savings associated with fueling vehicles with CNG instead of retail diesel prices and CO2 reduction equivalents from retiring passenger vehicles of the road, is derived from market, independent third party and industry data and is based on or derived from government information or estimates or other independent industry publications and reports. Government and industry publications and reports generally state that they have obtained their information from sources believed to be reliable, but neither Tourmaline nor Clean Energy have conducted their own independent verification of such information or determined the underlying assumptions on which such information is based. sources. While Tourmaline and Clean Energy believe this data is reliable, market and industry data is subject to fluctuations and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data collection process and other limitations. and uncertainties inherent in any statistical survey.
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