Clean Energy Takes Initial Step to Bring LNG to Florida Transportation Markets

Clean Energy Fuels Corp. announced that it has placed a purchase contract on property where it hopes to build a liquefied natural gas (LNG) fuel terminal in Jacksonville, Fla.  This would be the first LNG facility on the Eastern seaboard to specifically supply LNG for the maritime, heavy-duty trucking and rail industries.  The planned facility is the first project to be developed by Eagle LNG Partners, the recently-announced consortium of Clean Energy, GE Ventures, GE Energy Financial Services and Ferus Natural Gas Fuels, formed to jointly deliver the cleaner-burning, less-costly fuel in the United States.  

“Establishing LNG capacity in Jacksonville is a critical strategic effort to enable LNG fueling throughout the Southeast region for our various market segments,” said Brian Powers, vice president of LNG production, Clean Energy.  “This Eagle LNG Partners project could establish the Port of Jacksonville as a leader in maritime natural gas fueling and support the shipping industry as it follows other transportation segments in transitioning to natural gas.”  

Located on the St. Johns River at 1632 Zoo Pkwy., Jacksonville, FL, the facility could have the capability to produce approximately 300,000 gallons of LNG per day to support anticipated increases in maritime and rail use and bolster supply for trucking fleets operating throughout the Southeast United States. 

“The Jacksonville project is a strong first step for Eagle LNG Partners and would put the Eastern seaboard and Southeast region clearly in play for high horsepower LNG fueling applications,” said Sanjay Bishnoi, senior director, GE Ventures. 

Clean Energy has built an LNG facility in California, which has the capacity to produce 180,000 gallons of LNG per day. Clean Energy also operates an LNG facility in Willis, Texas that can produce 100,000 gallons of LNG per day. Construction of the Jacksonville facility is anticipated to begin in the second quarter of 2014 and is estimated to be completed in the fourth quarter of 2015.  Financial details of the project were not disclosed.

Jacksonville has emerged as a leading contender to facilitate LNG in maritime applications due to Jacksonville-based shipping companies increasing orders for LNG-fueled ships to service Caribbean markets such as Puerto Rico and the U.S. Virgin Islands.  LNG has become an increasingly attractive fuel choice as the shipping industry prepares for the 2015 enforcement of the North American Emission Control Area, the International Maritime Organization’s international air pollution control program which limits sulfur emissions and effectively bans the use of bunker fuel within 200 miles of the United States.    

Clean Energy is conducting an “Open Season” for customers to secure a portion of the facility’s remaining available capacity. There is anticipated to be significant interest in LNG supply from the Jacksonville area, and any interested parties can contact Greg Roche, vice president of national accounts and infrastructure, at (949) 437-1359 if they are interested in the excess supply.