Clean Energy Fuels, a provider of clean fuel for the transportation market, entered into a four-year $150 million sustainability-linked senior secured term loan with Riverstone Credit Partners, a dedicated credit investment platform focused on energy, power, decarbonization and infrastructure managed by Riverstone Holdings.

This financing provides Clean Energy with additional capital to execute its renewable natural gas (RNG) growth strategy as demand for RNG fuel rises. Clean Energy’s growth strategy includes the development of negative carbon intensity RNG projects and construction of new RNG fueling stations for transportation sector customers. Proceeds from the term loan will be used, in part, to help fund the company’s expansion of RNG projects at dairies, which capture fugitive methane and turn it into a fuel made entirely from organic waste and reduces carbon emissions by an average of 300% versus diesel.

“As we articulated at the beginning of the year, we have big plans to increase our supply of RNG from dairies because when it ends up in the tank of a heavy-duty truck or a transit bus, it is rated cleaner than any other alternative in the marketplace,” Andrew J. Littlefair, president and CEO of Clean Energy, said. “Our joint ventures with bp and TotalEnergies are having great success. We are currently constructing multiple RNG projects at dairies around the country with a healthy pipeline of other projects. This additional financing will allow us to stay on this rapid pace of development.”

“Clean Energy pioneered RNG as a vehicle fuel and continues to be the largest provider of RNG for the transportation industry throughout North America. We are thrilled to partner with them on their quest to deliver fully zero-carbon RNG by 2025,” Daniel Flannery, managing director at Riverstone.

Clean Energy obtained a second party opinion from Sustainable Fitch that considered the transaction to be aligned with the five pillars of the loan syndications and trading association’s sustainability-linked loan principles.