A True Alternative Fuel Company

Clean Energy Fuels (CLNE), according to the company's website, is "the largest provider of Natural Gas for transportation in North America with a broad customer base in the refuse, transit, shuttle, taxi, police, intrastate and interstate trucking, airport, and municipal fleet markets." CLNE serves approximately 200 fleet customers who operate approximately 13,000 Natural Gas vehicles in various markets, including public transit, refuse hauling, airports, taxis, and regional trucking. Moreover, the company owns, operates, and supplies 168 Natural Gas fueling stations as well as sell and lease Natural Gas fueling stations to third parties.

Moreover, the United States Government is currently subsidizing a significant percentage of the upfront costs incurred by customers as they switch from Diesel or Gasoline powered vehicles to Natural Gas powered vehicles. The reasons for this are simple. First, 100% of the Natural Gas used in the U.S. is currently produced by North American countries meaning, unlike oil, U.S. dollars are not flowing into the hands of unfriendly nations or violent extremists intent on harming U.S. interests. Second, Natural Gas is far cleaner than any other alternative fuel with the exception of Hydrogen, which is, at best, decades away from mass use. Moreover, producing Natural gas does not take up any valuable cropland away from food production. Natural Gas vehicles produce 95% less pollution than Gasoline or Diesel ones. Third, natural gas is far cheaper than Petroleum meaning substantial savings in the long run for Natural Gas operators. Fourth, Natural Gas is currently viewed by industry experts, including Spencer Abraham, the former head of the Department of Energy, as the most efficient feedstock to produce Hydrogen. Furthermore, much of the infrastructure built to support fleets of Natural Gas powered vehicles can be easily converted to distribute Hydrogen instead of natural gas when comes to do so. It is even possible to produce Hydrogen-Natural Gas blended fuels, which make good economic and environmental sense.

According to Jon D. Markman of the Street.com the potential for the Natural Gas fuel market in the U.S. alone is $21 billion, of which, a large portion will likely go to CLNE. Moreover, according to Mr. Markman the company is likely to earn between $0.60 and $0.84 per share in 2009. This is a 1900% to 2700% increase over this years projected earnings of $0.03 per share. Moreover, the company, which has almost no debt is only priced at roughly 71 times next years projected earnings and 27.5 times 2009 projected earnings, assuming the company only makes $0.60 per share in earnings. In short, this company is a buy and, for purposes of disclosure, I have recently acquired shares.