SEAL BEACH, Calif. --- Clean Energy Fuels Corp. has begun construction on California's first, large-scale LNG (liquefied natural gas) production plant in the Mojave Desert, approximately 75 miles northeast of Los Angeles. The plant is scheduled to begin commercial shipments in the second half of 2008. "This plant is a major step in our preparing to fuel potentially thousands of additional buses and trucks with natural gas as a result of increasing commercial demand and of new measures instituted by the California Air Resources Board and the ports of Los Angeles and Long Beach for cleaner vehicles," said Andrew J. Littlefair, president and CEO. Natural gas is one of the cleanest burning fuels available, Littlefair noted. Natural gas vehicles emit significantly less greenhouse gas and pollution than vehicles fueled by diesel or gasoline. At the new plant, Clean Energy will liquefy pipeline gas for shipment to customers by tanker trailers. Initial production capacity is anticipated to be 160,000 LNG gallons per day, which will be delivered for use by vehicle fleets throughout California and the Southwest. The facility can be expanded to a production capacity of 240,000 gallons per day. The plant will also have LNG storage capacity of 1.5 million gallons. Clean Energy, based in Seal Beach, Calif., is a major provider of natural gas (CNG and LNG) for transportation in North America. It has a broad customer base in the refuse, transit, shuttle, taxi, intrastate and interstate trucking, airport and municipal fleet markets, fueling more than 14,000 vehicles daily.

Originally posted on Fleet Financials