Clean Energy Fuels has completed the sale of $30.7 million in federal tax credits generated by seven of its renewable natural gas (RNG) production facilities. The transaction represents the company’s fourth successful monetization of tax credits associated with its RNG projects and includes a $26 million investment tax credit from its South Fork Dairy facility in Dimmit, Texas, the largest investment tax credit sale completed by the company to date.
The transaction also includes all of Clean Energy’s 2025 Section 45Z clean fuel production credits generated by its portfolio of dairy-based RNG projects. The seven facilities are located across Texas, South Dakota, Iowa, and Minnesota and include projects developed through the company’s joint ventures with bp and TotalEnergies.
Collectively, the facilities produced 2.7 million gallons of negative carbon-intensity RNG during 2025, supplying renewable transportation fuel designed to help commercial fleets reduce their greenhouse gas emissions.
The sale provides another example of Clean Energy’s strategy of monetizing federal tax incentives associated with developing and operating renewable fuel production facilities.
Clean Energy has been expanding its RNG production operations, particularly through projects that capture methane generated by dairy farms and convert it into transportation fuel.
The process involves collecting methane from organic waste, processing it to meet pipeline-quality natural gas specifications, and making the resulting renewable fuel available for use in natural gas-powered vehicles.
Capturing methane that would otherwise enter the atmosphere can substantially reduce the lifecycle carbon intensity of the resulting fuel. Certain dairy-based RNG pathways can achieve negative carbon-intensity scores because they prevent methane emissions while producing a usable transportation fuel.
Clean Energy’s RNG operations complement its established network of fueling stations across the United States and Canada, which supplies natural gas and renewable natural gas to commercial transportation customers.
The company serves thousands of vehicles across multiple transportation categories, including heavy-duty trucks, refuse collection vehicles, public transit buses, and airport shuttles.
Its production strategy is designed to increase the availability of RNG for these applications while creating additional value through environmental attributes and applicable federal tax incentives.
The largest component of the latest transaction comes from South Fork Dairy, Clean Energy’s RNG production facility in Dimmit, Texas.
The facility began producing renewable natural gas in 2025 and generated the $26 million investment tax credit included in the sale.
Investment tax credits provide qualifying renewable energy projects with federal tax benefits associated with eligible capital investments. By transferring these credits to eligible purchasers, project developers can monetize their value rather than relying exclusively on their own federal income tax liabilities.
The South Fork Dairy credit represents the largest ITC Clean Energy has sold to date, demonstrating the role federal tax incentives play in the financing and economics of the company’s RNG production infrastructure.
In addition to the South Fork Dairy credit, Clean Energy sold the 2025 Section 45Z credits generated by its dairy RNG portfolio.
Section 45Z provides federal tax incentives for qualifying clean transportation fuels, with credit eligibility and value tied to applicable production requirements and lifecycle greenhouse gas emissions.
Unlike investment tax credits, which are associated with eligible project investments, Section 45Z credits are generated through qualifying clean fuel production.
The inclusion of both types of credits allows Clean Energy to monetize federal incentives associated with different aspects of its renewable fuel operations.
The transaction covers projects in which Clean Energy participates directly and through its joint ventures with bp and TotalEnergies, reflecting its broader strategy of developing RNG production infrastructure in partnership with major energy companies.
These joint ventures support the development and operation of dairy-based renewable natural gas facilities while expanding Clean Energy’s portfolio of fuel production assets.
The company’s ability to sell credits generated by these facilities provides an additional source of cash proceeds associated with its renewable fuel business.
The latest sale is Clean Energy’s fourth completed tax credit monetization transaction involving its RNG projects. The company did not disclose the identity of the purchaser or the individual proceeds attributable to each facility.
Clean Energy continues developing its RNG business as part of its broader strategy to reduce greenhouse gas emissions from transportation.
By combining renewable fuel production with its established fueling infrastructure, the company supplies fleet operators seeking alternatives to conventional diesel and other transportation fuels.
The completion of the $30.7 million tax credit sale demonstrates how Clean Energy is using federal tax incentives to support the financial performance of its expanding RNG production portfolio.
KEY QUOTE:
“This is our largest ITC sale to date and a strong result for our RNG business. Successfully monetizing our full portfolio speaks to the value of these projects and the increasing demand for the environmental benefits they deliver.”
Will Flanagan, Vice President of Strategic Development at Clean Energy
