Clean Energy Fuels Q1 2025: Navigating Contradictions on Tax Credits, Production Timelines, and Strategic Growth

Impact of the 45Z Production Tax Credit, Impact of 45Z Tax Credit, RNG Facility Production and Timing, and Impact of 15-Liter Engine on Station Footprint are the key contradictions discussed in Clean Energy Fuels Corp.'s latest 2025Q1 earnings call.



Revenue Stability Despite Lower Volumes:
- Clean Energy Fuels reported revenue of $104 million for Q1 2025, similar to last year despite a loss of the Alternative Fuel Tax Credit.
- Revenue stability was driven by strong pricing and fleet volumes, despite lower RNG supply and volumes from third-party producers.

Strong RNG Demand Despite Challenges:
- The company sold 51 million gallons of RNG in Q1 2025, with fueling demand steady from refuse, transit, and trucking sectors.
- Demand resilience was due to RNG's role as a clean, low-cost fuel solution, even with supply issues impacting volumes.

Upstream Production Challenges:
- Some dairies experienced delays due to weather and operational issues, although production is expected to improve.
- Projects are expected to be at 80% of nameplate capacity by year-end, with additional projects expected to come online in 2026.

Tariffs and Economic Uncertainty:
- Tariffs were noted to potentially affect customer planning and purchases, impacting future volume growth from X15N trucks.
- The company remains optimistic about clarity on tariffs and their impact on the trucking industry's purchasing decisions.

Share Repurchase Program Resumed:
- Clean Energy Fuels resumed its share repurchase program due to the company's undervalued stock price.
- The program uses a previously approved budget of approximately $26 million, with ongoing caution regarding capital allocation.