Clean Energy Fuels Reaches Key Milestone with Texas Facility Launch

The operational landscape for Clean Energy Fuels is shifting as a major capital project transitions into an active revenue generator. The company has confirmed the commissioning and start-up of its significant renewable natural gas (RNG) production facility in Texas, marking a pivotal move from construction expenditure to commercial operation.

Located at the South Fork Dairy in Dimmitt, Texas, the newly operational plant represents a fully owned, $85 million investment by Clean Energy Fuels. This strategic ownership allows the company to capture a greater portion of the margin within the RNG value chain, reducing reliance on third-party suppliers. The facility is now injecting RNG into the national pipeline network.

The project processes an estimated 300,000 gallons of manure daily, sourced from a herd of approximately 17,500 cows. It is projected to have an annual production capacity of 2.6 million gallons of renewable natural gas.

Key Project Specifications:
* Total Capital Outlay: $85 million
* Anticipated Annual Output: 2.6 million gallons of RNG
* Daily Feedstock Processing: 300,000 gallons of manure
* Source Herd Size: ~17,500 cows

The commencement follows a construction phase that encountered delays, including a significant fire, underscoring the challenges overcome to reach this stage.

Should investors sell immediately? Or is it worth buying Clean Energy Fuels?

Regulatory Benefits and a Phased Revenue Timeline

The facility's launch brings immediate regulatory advantages. The U.S. Environmental Protection Agency (EPA) has granted approval for the generation of Renewable Identification Numbers (RINs), which are marketable credits that can be sold without delay.

However, a critical detail for investors involves the timing of additional credit revenue. While RINs are available now, the valuable Low Carbon Fuel Standard (LCFS) credits from this asset will not begin accruing until the first quarter of 2026. This staggered realization of income is a key factor for modeling the project's near-term cash flow contribution.

Operational Pivot: From Capital Deployment to Generation

With the South Fork Dairy plant now running, Clean Energy Fuels has executed a clear operational pivot. The period of substantial capital investment, totaling $85 million, is complete. Focus now turns to plant efficiency, output consistency, and the integration of this new supply into the company's fuel portfolio.

Market attention will subsequently shift to tracking the facility's actual production volumes against its stated capacity and monitoring the realized prices for its environmental credits. The addition of 2.6 million gallons in annual RNG capacity provides a tangible benchmark for evaluating the company's growth within the renewable fuels sector.