Tourmaline and Clean Energy open new CNG stations, advancing Western Canada’s first commercial-grade natural gas fueling corridor

The expanding network of fueling stations represents a significant diesel displacement opportunity by providing a reliable source of compressed natural gas (CNG) for long-haul trucks and other fleets.

Tourmaline Oil Corp. (TSX: TOU) (“Tourmaline”) and Clean Energy Fuels Corp. (NASDAQ: CLNE) (“Clean Energy”) announced today the opening of two new compressed natural gas (CNG) fueling stations in Alberta, marking a key milestone in their continuing efforts to build Western Canada’s first commercial-grade public CNG fueling network. The new locations in Calgary and Grande Prairie, along with the Edmonton station which opened in April 2023, establish a crucial transportation corridor for trucking companies converting their fleets from diesel to CNG.

Powering long-haul trucks and other fleets with CNG results in lower emissions of carbon dioxide, nitrogen oxides, sulphur dioxide and particulate matter compared to traditional diesel-powered vehicles.

“We are expanding our multi-year diesel displacement initiative by making CNG more readily available to heavy-duty trucking companies,” said Michael Rose, Chairman, President and CEO, Tourmaline. “Right here in Alberta, we have the technology, an abundance of natural gas, and now the infrastructure to help facilitate a transformative shift in the transportation sector.”

The $70 million Joint Development Agreement between Tourmaline and Clean Energy was announced in April 2023, along with their commitment to build up to 20 CNG fueling stations across Western Canada in the next five years. In just over a year, their customer base has grown to nine market-leading companies that have already collectively displaced two million litres of diesel by utilizing CNG technology.

“The adoption of CNG has continued to accelerate over the last year, as more companies recognize the benefits of displacing diesel with a reliable fuel that is easy to use and extremely cost competitive for fleets,” said Andrew Littlefair, President and CEO, Clean Energy. “The development of this critical infrastructure is perfectly timed as the important new X15N natural gas engine from Cummins is being introduced to the trucking industry to rave reviews. We expect that the combination of more fueling locations and the new engine technology, which is perfectly suited for the Canadian market, will pave the way for continued growth of CNG.”

Cummins, one of the world’s leading engine manufacturers, has recently introduced its X15N natural gas engine into the Canadian and U.S. heavy-duty truck market. Trucks with pre-production models of the X15N were tested by some of the most demanding fleets over the last year including Walmart, Werner, Knight Swift, FedEx Freight and UPS. It was found to deliver diesel-like ratings as well as durability and reliability to allow fleets to significantly reduce emissions of carbon dioxide, nitrogen oxides, sulphur dioxide and particulate matter without sacrificing capability.

Mullen Group Ltd., (Mullen Group), the first company to support the Tourmaline and Clean Energy initiative, plans to leverage the new X15N engine as it prepares to nearly double its fleet of CNG-fueled trucks.

“As one of North America’s largest logistics providers, the Mullen Group is committed to being a leader in sustainability. Today we operate one of the largest CNG-powered truck fleets in the Province of Alberta, now having 19 fully operational, with plans to deploy another 15 units as soon as they become available. Our CNG fleet continues to perform well, and now with the opening of these additional fueling stations, we can position the CNG units in additional markets, providing an ESG alternative to a broader scope of customers,” said Murray Mullen, Chair, SEO and President, Mullen Group.

“Western Canada’s first natural gas highway is taking shape right here in Alberta, driven by the innovative efforts of Tourmaline and Clean Energy,” said Alberta Premier Danielle Smith. “This collaboration showcases how industry-led initiatives can drive more efficient transportation solutions. Alberta is proud to support forward-thinking projects that will help create a more sustainable future for long-haul trucking across Canada.”

Once complete, the 20-station network could fuel up to 3,000 natural gas-powered trucks daily. Construction on the next CNG fueling station is set to begin in Kamloops, B.C., with Fort McMurray and Fort St. John to follow. The CNG stations are also equipped with the same infrastructure needed for renewable natural gas (RNG), making for a streamlined transformation when RNG becomes more readily available in Canada.