Shares of Clean Energy Fuels Corp (NASDAQ: CLNE) are rallying on Monday after the announcement that it has signed an agreement with Amazon (NASDAQ: AMZN) to provide low and negative carbon renewable natural gas (RNG).
CLNE said the fuel will be provided at 27 existing Clean Energy fueling stations and another 19 non-exclusive new or upgraded Clean Energy-owned stations that they expect to be constructed by the end of the year. The new and existing stations will provide RNG in 15 different states.
CLNE has also issued a warrant to Amazon to purchase up to 53.1 million shares of stock in the company.
“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 Andrew J Littlefair, CEO and president of Clean Energy.
“Clean Energy was the first to commercially make RNG available as a vehicle fuel in 2013 and now fuels tens of thousands of vehicles across the country every day,” added Littlefair.
Clean Energy Fuels share price jumped to highs of $14.09 following the announcement. They are now at $13.05, up 17.15% on the day.
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