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Clean Energy (CLNE) Enters an Accord With BP Affiliate

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Clean Energy Fuels Corp. (CLNE - Free Report) recently announced an accord with BP Products North America Inc, an affiliate of BP p.l.c. (BP - Free Report) .

The agreement calls for the creation of a 50/50 joint venture (“bpJV”) through which the companies will get involved in the operation and development of a new renewable natural gas (RNG) facilities at other agriculture facilities and dairies. The plan was disclosed earlier by Clean Energy. It is to be noted that per the deal it has been committed by BP and Clean Energy to provide $50 million and $30 million, respectively, to bpJV.

Importantly, through this development, the companies have decided for the production of one of the world’s cleanest fuels. From the to-be constructed renewable natural gas production facilities, the companies will be able to capture carbon emissions from dairies and will convert it to a transportation fuel. Thus, the long-term negative impact on climate change will get subsided.

As a largest provider of renewable natural gas, being used as a fuel for transportation, in the United States and Canada, Clean Energy added that there has been accelerated improvement in demand for this carbon-negative fuel over the past few years. Thus, the latest agreement will boost the companies’ bottom line in the long run.

Currently, Clean Energy carries a Zacks Rank #4 (Sell), while BP carries a Zacks Rank #2 (Buy). Meanwhile, two prospective players in the energy sector include Diamondback Energy, Inc. (FANG - Free Report) and Matador Resources Company (MTDR - Free Report) . Both the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Diamondback is likely to see earnings growth of 112.5% in 2021.

Matador is likely to see earnings growth of 300% in 2021.

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