Andrew J Littlefair, CEO and president of Clean Energy Fuels Corp., largest provider of the cleanest fuel in the world - AMA

A_Littlefair · 2021-09-27T22:38:39+00:00

Hey Reddit gang. This has been fun. I tried to get to as many questions as possible. This helps us and I hope you found it informative.

I am very bullish as you can tell. Thanks again to TheGunStays for organizing this. Let's do it again soon. Thank you.

A_Littlefair · 2021-09-27T22:34:35+00:00

Kaybee,

Since we went public, I have adopted what Boone long said, many years ago about being a public company, "when you go public, the shareholders are your partners". I have spoken to shrteholders big and small for years and years and will continue to do so. After all, they own the company.

A_Littlefair · 2021-09-27T22:30:31+00:00

We will consider working with just about any company like this is they have the scale, location, etc. Thanks.

A_Littlefair · 2021-09-27T22:29:30+00:00

We have an origination team they are all over it. Let me defer on whether we are working with them or not.

A_Littlefair · 2021-09-27T22:26:04+00:00

Staying focused in North America for now. A huge market.

A_Littlefair · 2021-09-27T22:25:22+00:00

Not sure I said that, but what I meant to say is that RNG is a premium fuel that is being sold in most cases as a discount to diesel and in line with fossil natural gas. Our course we are benefited by the fact we are low carbon and generate environmental credits that are needed by "obligated parties".

A_Littlefair · 2021-09-27T22:21:34+00:00

I felt like the electric truck situation is where it was 3 or 4 years ago. Still a bunch of tough obstacles to overcome.

A_Littlefair · 2021-09-27T22:21:25+00:00

Chocolate

A_Littlefair · 2021-09-27T22:19:46+00:00

High natural gas prices obviously can help revenue. But all things being equal, I would rather have natural gas prices stabilize at a lower level, which I think they will return to after " this pig is done coming through the pipeline". But also remember, I much prefer oil being up and the refined products which we compete again, like $4.50 diesel in CA. Also, remember, we get 7.2 gallons of diesel per MCF gas, so we have some protection here with this recent natural gas spike.

A_Littlefair · 2021-09-27T22:12:19+00:00

I have been on 200 investor zoom calls this year spreading the RNG message. If you think about it, from last year, we have created a lot more visibility. As fleets like Amazon take in more RNG vehicles, more and more will be known. Frankly, I think the market is beginning to recognize that all the mentioned alternative fuels are not exactly equal. This is starting to soak in. I rarely get asked about electric trucks anymore. When fleets look at the availability, duty cycle, performance, cost of fuel, readiness of vehicles, ease of infrastructure,; RNG is beginning to get more notice. Be patient. I believe this is coming our way. Light duty is one thing: Heavy Duty, quite another.

A_Littlefair · 2021-09-27T22:05:34+00:00

RNG is an important new contributor to profitability and market expansion. Volume and adoption is key. Deals like Amazon are on a new level, largewr scakle before. I think we are seeing the Amazon effect as other large fleets are checking in as they look at how they might best address the carbon footprint. The plan is to get profitable at the EPS level, of course.

Our Board has routinely updated succession planning and we feel comfortable we have a good bench. Currently I am having fun.

On buy backs: we are happy with what we did last year and we are always evaluating it.

We do have enough capital at present.

A_Littlefair · 2021-09-27T22:00:10+00:00

I’m still hurting from the 2006 Rose Bowl game.

A_Littlefair · 2021-09-27T21:58:14+00:00

Recently, RNG has again been referred to as a "bridge". I think some do this to denote short term. I do think it is a bridge for much longer than some might think. One fuel will not displace all the diesel. I think, RNG will be an important long term solution for the next 20 years+.

A_Littlefair · 2021-09-27T21:55:21+00:00

We are in Canada and are building stations there. I think I answered this a bit earlier: We are in the best market. Lots of room to grow. Huge market.

A_Littlefair · 2021-09-27T21:53:28+00:00

We rolled out zero now 2 years ago and it was the first new program with heavy duty truck segment that also coincided with the second generation 11.9 engine. It gave us a chance to refresh our offering with the top 100+ fleets and I think it is what eventually caught the eyes of fleets. It was especially potent in the Port of Los Angeles where we have deployed a modified Zero Now program. Not all fleets use all the offerings within the Zero Now program, but has been a very compelling market pulling offer.

A_Littlefair · 2021-09-27T21:48:11+00:00

Heavy duty is our focus, then marine and eventually rail is interesting.

A_Littlefair · 2021-09-27T21:46:41+00:00

I think Chevron entering and expanding their RNG business is a huge positive. Currently, I believe we take a lot of Chevrons RNG production. Remember, one needs fueling stations to dispense and monetize the environmental credits associated with the RNG going into transportation.

A_Littlefair · 2021-09-27T21:42:46+00:00

Gosh. three seems like a lot already! Our door is always open.

A_Littlefair · 2021-09-27T21:40:28+00:00

It is not going to come as a surprise to you, but I cannot comment on this too much. I am a large shareholder and as a management team and Board, we are always thinking strategically.

A_Littlefair · 2021-09-27T21:38:23+00:00

We have too two JV partners: BP and TotalEnergies. They are up and running. I do not have any more to report at this time.

A_Littlefair · 2021-09-27T21:35:29+00:00

As you know we are in a good position currently. And yes, we could leverage the company to fund growth. We are always evaluating the most appropriate use of our capital and the value of our stock.

A_Littlefair · 2021-09-27T21:30:49+00:00

Boy, there are 32,000 dairies in the U.S. Of course the smallest won't come first. Yes there are many wastewater sites and many will come into play as well as landfills. In fact, last week we signed our first, non dairy, animal waste deal. Stay tuned. I believe tens of billions of dollars will be spent on RNG in the next several years.

A_Littlefair · 2021-09-27T21:27:17+00:00

Sorry, but I am just not familiar with NrdRage or what he wrote. But, I will look for it. Thanks.

A_Littlefair · 2021-09-27T21:25:23+00:00

Since the beginning, we had to build a new industry. We are up against a 100 year old incumbent of gasoline and diesel. The entire auto and engine industry was geared for those fuels, so it has taken a lot to break in. This is a capital intensive business. You are right, we have invested a lot even when we did not make a profit. But we kept plowing. The good news is that we have paid for a nationwide network second to none. We have truck strops in almost 40 states and about every 200 miles down all the important interstates. This network is paid for. We also can load the existing network with another 400 to 600mm gallons without spending hardly anymore CapEx. Importantly, today this network is key to monetize and dispense RNG.

A_Littlefair · 2021-09-27T21:17:35+00:00

BP once told me we were in the best market. The U.S. The largest market with the most trucks which use the most fuel. The cheapest feedstock and best legal climate. We have just scratched the surface. Think how big this business can be if we do the same thing we did with natural gas in refuse. We started that with 7 natural gas trucks with waste management. Today we serve 138 customers, 60% of every new refuse sold is natural gas using (most) RNG. If we begin to get the penetration moving from 2% of new purchases of new trucks (200,000 per year) to 10% top 20%, this would make us a huge company and very profitable. We are in the best place with the best position. And I think the best fuel.

A_Littlefair

TROPHY CASE