Clean Energy Cashes In On Dairy RNG With US$30.7 Million Tax Credit Sale
Seven Projects Across Four States Generate Credits Including A US$26 Million Investment Tax Credit
Clean Energy Fuels Corp. (Clean Energy), based in Newport Beach, California, has closed a US$30.7 million sale of federal tax credits generated by its renewable natural gas (RNG) portfolio. It is the company’s fourth transaction monetizing credits from its RNG projects.
The largest component is a US$26 million investment tax credit (ITC) tied to South Fork Dairy in Dimmit, Texas, which began producing RNG in 2025. The rest of the total includes 2025 Section 45Z clean fuel production credits.
The credits come from seven dairy RNG projects in Texas, South Dakota, Iowa, and Minnesota, some of which operate through joint ventures with BP and TotalEnergies. In 2025, the projects produced 2.7 million gallons (about 10.2 million liters) of negative carbon-intensity RNG for transportation fleets.
Clean Energy captures methane from organic waste to produce RNG for vehicles ranging from airport shuttles to heavy-duty trucks, and it operates fueling station networks across North America.
“This is our largest ITC sale to date and a strong result for our RNG business. Successfully monetizing our full portfolio speaks to the value of these projects and the increasing demand for the environmental benefits they deliver,” said Will Flanagan, vice president of strategic development at Clean Energy.
