Clean Energy Fuels Corp. (CLNE) stock price: Is it worth it?
You might not have noticed the CLNE stock price while looking for the next investment opportunity. Renewable energy is a promising industry, but it may not boom anytime soon. Still, you may find this unusual green energy stock worth it.
Let’s start by talking about Clean Energy Fuels Corp and its renewable natural gas offerings. Then, we’ll see the likely benefits and risks from this lesser-known type of green energy. As you’ll see, you might not want to buy this stock just yet.
It would help if you always looked for new investments, especially in new or unusual places. Renewable natural gas stocks like CLNE fit this description. Unfortunately, you’ll see that it’s not enough to make it appealing to hold right now.
What is CLNE?
As the name suggests, Clean Energy Fuels Corp. (CLNE) aims for a greener planet. It wants the world to meet its energy demand while helping the environment.
Current CEO Andrew Littlefair and T. Boone Pickens shared this goal. That’s why they started Pickens Fuel Corp. in 1996. Eventually, the name changed to Clean Energy Fuels.
Right now, CLNE makes and operates vehicle refueling stations that use compressed natural gas (CNG) and liquefied natural gas (LNG).
It also manufactures CNG and LNG equipment and technologies. Out of all the kinds of green energy sources, CLNE chose renewable natural gas.
What is renewable natural gas?
Turning agricultural waste into renewable natural gas #RNG is a win-win for farms: it generates an additional source of income and also mitigates the methane emissions from livestock manure. #CowPower https://t.co/TUs4n5CpwUFEATURED STORIES
— Clean Energy (@CE_NatGas) July 20, 2021
Before we can talk about CLNE stock price, we need to learn about its main product. This will help us see if it has a chance to grow in the long run.
You may have heard of natural gas before. It’s a fossil fuel, just like crude oil. What makes it different? Meanwhile, renewable natural gas can be good for the planet.
It comes from decomposing organic stuff. The RNG may be turned into CNG and LNG that can run vehicles and make electricity. It’s also known as biogas, and here are its sources:
- Landfills – These trash locations are the 3rd largest source of human-related methane in the US. This is why the biogas it makes is called landfill gas (LFG). Around 564 LFG projects have been running in the United States since June 2020.
- Wastewater – The solids in the dirty water can turn into biogas. Wastewater RNG plants could meet roughly 12% of the US energy needs.
- Livestock operations – The manure from livestock farms makes up 27% of the methane produced in the US. If made into biogas, cars can use it as fuel.
Clean Energy Fuels Corp. uses biogas from farms. It now has over 570 fueling locations across the US. You may also find CLNE in Canada. This makes the CLNE stock price worth it.
Problems with RNG
Having a great one doesn’t mean the stock is worth it. Take Amarin stock as an example. Look beyond the CLNE stock price and focus on its product.
The company makes a drug that lowers fat levels and heart risks. That alone could turn it into a good stock to buy. Sadly, it may have a hard time getting materials due to the pandemic.
CLNE uses renewable natural gas that may help the planet while giving it energy. Does it sound like a win-win? Yet, RNG faces numerous issues such as the following:
- Lack of awareness – Few people know about this green energy type. RNG needs more people to know about it. Otherwise, it may find it hard to get more investors and upgrades.
- It’s expensive – RNG is more expensive than natural gas. Building RNG plants cost a lot. This keeps more startups from trying RNG.
- Access and quality – Many gas companies said they’re interested in RNG. Sadly, they require different gas qualities and other factors. This makes it hard for companies who want to use RNG as well.
- Feedstock supply – Farm waste management needs to change so it can provide RNG material. What’s more, only a few types of waste are used to make RNG right now.
More volatility and dips for CLNE stock price
Canada’s farms are doing well even with the pandemic. The same isn’t true for the United States. Several parts of its supply chain are still in trouble.
Several meat-processing plants shut down in response to outbreaks. Further down the chain, school cafeterias and restaurants closed down too.
You might be thinking, “Why don’t they just send their products to supermarkets?”. Well, their products were not meant for retail. Repurposing them is also complicated.
Farmers had to destroy their produce since nobody could buy and eat them. They had to throw away crops and fresh milk. They even had to euthanize their livestock.
Fewer animals mean less manure gathered from farms. If you noticed, this would pose a risk to the livestock biogas supply. As we said, the supply was already hard to come by.
Also, there’s the threat of the COVID-19 Delta variant. It may hurt the United States’ economic recovery. You may see the effects on the CLNE stock price.
The price of CLNE stock is $8.18 at the time of writing. This is a far cry from its previous $18.00 to $11.00 range in February 2021. It may have problems rising once again.
The price may go up and down more often because of the uncertainty. You may want to wait for the Clean Energy Fuels Corp. Q2 earnings report on August 5 to buy at a certain price target.
The green energy sector isn’t the only promising one. Other fields are thriving too. You may want to check those for worthwhile investments.
Be careful when investing in anything. Research and plan how you’ll build your portfolio yourself. Find out how your chosen stocks have been doing in the past.
Learn more about the CLNE stock price
What are some examples of clean energy?
The most well-known ones are solar, wind, hydroelectric, and geothermal energy. There are lesser-known types as well, such as renewable natural gas.
What does Clean Energy Fuels Corp do?
The company provides pieces of equipment that use renewable natural gas. This comes from livestock waste material. Right now, it has hundreds of vehicle refueling stations in the US.
Will CLNE stock price go up?
The price of CLNE stock may rise again, but it may take a while. The United States is still having a hard time recovering from the pandemic.
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