- Clean Energy Fuels shares climbed 27% during Monday’s session after reaching a renewable natural gas supply deal with Amazon.
- The company will supply Amazon’s delivery trucks with natural gas at up to 46 Clean Energy fueling stations.
- Clean Energy granted to Amazon a warrant to purchase more than 53 million of its shares.
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Clean Energy said it will provide Amazon Logistics low and negative carbon renewable natural gas at 27 of its Clean Energy fueling stations. The company will provide natural gas at another 19 non-exclusive new or upgraded stations that Clean Energy expects will be built by the end of 2021.
Shares of Clean Energy rose as much as 27% to an intraday high of $14.10 then pared the gain to 10% during the session. Volume was heavy with roughly 63 million shares trading hands, well above the average daily volume of about 7.3 million shares.
Financial terms of the agreement were not disclosed. Clean Energy also said it will provide renewable natural gas to Amazon in 15 states and that it has issued to Amazon a warrant to purchase up to 53,141,755 of its shares.
Amazon in 2020 launched a $2 billion fund to work with startups that are developing technologies to address climate change.
Clean Energy, which runs more than 530 natural gas stations in 43 states and Canada, was co-founded by oil magnate T. Boone Pickens and Andrew Littlefair, with the latter currently serving as Clean Energy’s president and CEO.
“If the world is really going to tackle the issue of climate change, all of us need to find solutions that work both environmentally and economically, and that is exactly what this agreement supports,” said Littlefair in Monday’s statement.