LOS ANGELES Oct 21 Shares of Clean Energy Fuels
Corp rose 4.5 percent on Monday after the company said
it had struck a deal with GE Capital that will help
companies finance purchases and leases of pricey natural
Clean Energy, which provides natural gas fuels for
transportation, said that under the terms of the agreement,
truck fleet operators must clinch natural gas fueling contracts
with Clean Energy and then will be able to apply for loans and
leases from GE Capital.
Newport Beach, California-based Clean Energy then said it
will help offset the monthly cost of a natural gas truck to make
it comparable to the cost of a diesel truck.
Natural gas costs about $1.50 less per gallon than diesel or
gasoline, according to T. Boone Pickens-backed Clean Energy.
Greenhouse gas emissions from natural gas trucks are about
20 percent lower than those of diesel trucks. But truck
companies must fork over an extra $40,000 to $80,000 per natural
gas truck. A heavy-duty diesel truck starts at about $100,000.
"You've removed that upfront capital differential that still
favors diesel right now," said Ascendiant Capital analyst Carter
Driscoll, who has a "buy" rating on Clean Energy shares. "If
you've removed that upfront hurdle you are talking about pure
Almost a year ago, Clean Energy Fuels said it would buy two
small LNG plants from GE's oil and gas unit. GE will provide up
to $200 million in financing for those plants. GE Capital is a
unit of General Electric Co.
Clean Energy shares were up 52 cents, or 4.5 percent, at $12
in afternoon trading on the Nasdaq.