ANNUAL SUSTAINABILITY REPORT 2023

Table of contents

INTRODUCTION

2

Letter from the CEO

4

About Clean Energy

6

About renewable natural gas (RNG)

7

Our products and services

9

Corporate governance

15

Our sustainability strategy

16

2023 HIGHLIGHTS

18

2023 Fast facts

19

Customer impacts

20

2023 Success stories

21

ENVIRONMENT: FUELING THE TRANSITION TO RENEWABLE ENERGY IN TRANSPORTATION

23

Environmental goals

24

Environmental benefits

of dairy RNG

25

Environmental benefits

of landfill RNG

26

Addressing methane leaks

27

Operational energy efficiency

28

Environmental impact and nature-related risk

29

SOCIAL: BUILDING THE WORKFORCE OF THE FUTURE

32

Social goals

33

Employee recruitment, retention, and engagement

34

Employee spotlights

35

Diversity, equity, and inclusion

36

Actions for good

37

Employee and contractor safety

38

GOVERNANCE: SMART POLICIES FOR SYSTEM TRANSITION TO RENEWABLE FUELS

40

Governance goals

41

Stakeholder engagement, advocacy, and lobbying

42

Business ethics, executive compensation, and incentives

44

2023 DATA AND ADDITIONAL INFORMATION

45

Our 2023 greenhouse-gas inventory

46

Company emissions performance

48

About this report

54

Forward-looking statements disclaimer

56

A note on materiality

56

GRI index

57

ANNUAL SUSTAINABILITY REPORT 2023

TABLE OF CONTENTS

INTRODUCTION

2023 HIGHLIGHTS

ENVIRONMENT

SOCIAL

GOVERNANCE

2023 DATA AND ADDITIONAL INFORMATION

2

INTRODUCTION

3

A letter from

Andrew J. Littlefair,

PRESIDENT AND CEO

At Clean Energy, our mission from the very beginning has been to provide a cleaner fuel for fleet vehicles that is easy to use and affordable. Today, everything we do is with the certainty that we continue to have the best option that fulfills that mission with renewable natural gas (RNG). RNG is the easiest, most readily available and affordable fuel for midsize and heavy-duty vehicles to meet their decarbonization goals.

The Clean Energy team works hard every day to bring this remarkable fuel to thousands of fleets, resulting in Clean Energy becoming the largest provider in North America. In 2023, we reached new meaningful milestones which underscored our ongoing commitment to growing Clean Energy's RNG footprint in more ways than one.

Last year, we completed multiple projects that strengthened our position for expansion and development of our business, while positioning Clean Energy to meet our own sustainability goals and helping our customers to do so as well.

First and foremost, we saw the successful operational launch of our first RNG project at Del Rio Dairy in Friona, Texas. Having broken

ground in 2021, it began producing RNG from the collected manure of 8,000 dairy cows last year. We anticipate the supply to reach around 1.1 million gasoline gallon equivalents (GGEs), which will be the first RNG supply we not only sell at our own stations, but also produce ourselves. It's a lengthy and complex undertaking getting these large facilities online, and by becoming fully operational, the Del Rio RNG site will prevent harmful methane from entering the atmosphere-a big win-win for the dairy farm, for transportation, and for the planet.

And staying on the RNG front, our efforts bore fruit with a significant increase in RNG fuel sales, climbing from 199.2 million GGEs in 2022 to 225.7 million GGEs in 2023, marking an exceptional

13.9 percent increase. That's a collective carbon emissions reduction of approximately 1,037,423 MT of CO2e by our customers, an improvement of 16 percent from the prior year just by fueling with clean-burning RNG. This is truly a testament to the growing demand and acceptance of RNG as a viable alternative.

ANNUAL SUSTAINABILITY REPORT 2023

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INTRODUCTION

2023 HIGHLIGHTS

ENVIRONMENT

SOCIAL

GOVERNANCE

2023 DATA AND ADDITIONAL INFORMATION

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Much of that demand was driven by our large customer, Amazon, which fuels thousands of heavy-duty trucks at our network of stations. In 2023, we opened eight stations as part of our agreement with Amazon, where their trucks are an anchor customer, but the stations are also well located for other fleets to take advantage of fueling with RNG.

To guarantee a steady supply for some of the country's largest fleets such as UPS and Amazon, which rely on us to provide them with clean fuel, our Renewables Distribution team successfully certified 11 and initiated a further 18 fuel-pathway projects for future dairy and landfill RNG digester projects. This assures a continuous source of government -certified fuel to meet customer demand.

While RNG is our primary solution and does wonders as a fuel, it can also be used as a feedstock for hydrogen. In 2023, we were awarded a contract to construct the first hydrogen fueling station for our customer, Foothill Transit, one of the largest transit agencies operating in Southern California. The new hydrogen station will supply liquid-hydrogen fuel that is partially produced with RNG to refuel 33 Foothill buses daily. We see potential in growing our hydrogen fueling business as more transit agencies are looking at that alternative clean-fueling option.

We also signed an agreement in 2023 with Tourmaline, Canada's largest natural-gas producer, that will significantly increase our fueling footprint in the important Canadian market. We embarked on this joint-development agreement to support the growth of lower-carbon fuels by building up to 20 new stations across western Canada. These stations will allow over 3,000 trucks to be fueled with clean-burning compressed natural gas (CNG) every day, improving air quality and potentially reducing up to 72,800 tons of CO2 each year, which is an equivalent to removing 15,690 passenger vehicles from the road.

All in all, I am incredibly proud of the progress the Clean Energy team made in 2023. It was a year where many of the pieces fell into place, which well positions us to continue to be a leader in providing cleaner solutions to customers and ultimately all of us who occupy this planet. Our dedication to providing the cleanest fuel remains steadfast and we look forward to continuing to lead the charge to decarbonize commercial transportation in 2024 and years to come.

Sincerely,

Andrew J. Littlefair

President and CEO

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About Clean Energy

Clean Energy Fuels Corp. is the country's largest provider of renewable natural gas (RNG) for the transportation market, both in number of stations and gallons delivered per year.

Our mission is to create a healthier planet by eliminating carbon emissions in the transportation and dairy industries.

RNG is a sustainable fuel made from organic waste that allows large vehicles-like heavy-duty trucks, city buses, and airport shuttles-reduce their greenhouse gas emissions.

Our vertically integrated business model begins at dairies and ends in commercial vehicles. We operate a vast network of fueling stations across North America, along with RNG production facilities at dairy farms nationwide. Our robust infrastructure ensures a quick path from pasture to pump, and it provides the widespread access that fleets need to adopt our renewable solution.

1 Updated 2023 CARB data.

HEADQUARTERS

STOCK SYMBOL

Newport Beach

CLNE

California

NASDAQ

ESTABLISHED

NUMBER OF EMPLOYEES

1997

566

26 yrs

NUMBER OF STATIONS

TOTAL FUEL VOLUME IN 2023

600+

466.2M GGE

US and Canada

CNG and LNG, including RNG

RNG SALES GROWTHRNG MARKET SHARE1

13M

225.7M

43%

56%

GGE in 2013

GGE in 2023

U.S.

California

FLEET CUSTOMERS

FUELING VEHICLES

1000+

50,000+

(as of Dec. 31, 2023)

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About renewable natural gas (RNG)

WHAT IS RNG?

Renewable natural gas (RNG) is a low-carbon transportation fuel for heavy-duty trucks, buses, refuse fleets, and other large vehicles. It's made entirely from organic waste, from sources like livestock farms, landfills, and wastewater- treatment facilities.

Unlike conventional natural gas, RNG is not a fossil fuel and does not involve drilling or fracking. But they both share the same chemical composition, which allows RNG to seamlessly drop into the existing natural-gas distribution infrastructure and into all natural-gas vehicles.

RNG is a mature and proven solution that replaces diesel and gasoline, reducing both smog-forming NOx emissions and carbon emissions. No other alternative-fuel technology comes close.

EMISSIONS-REDUCTION SOLUTION

As a society, we produce a lot of waste. This is a problem because when organic matter decomposes, it naturally releases methane, a highly potent greenhouse gas with a global- warming impact 28 times greater than that of carbon dioxide.2 By capturing waste methane from sources like dairy farms, we can achieve

a net impact that goes beyond current definitions of net-zero.

In fact, according to the California Air Resources Board (CARB), RNG surpasses even fully renewable electric options derived from solar and wind, thanks to its ability to prevent fugitive methane emissions from escaping into the atmosphere.

As a stable, domestic source of energy, unaffected by geopolitical events or price fluctuations in global markets, RNG is well suited to displace diesel and gasoline.3 But it can also be used as a decarbonizing feedstock for power generation of other clean commodities, like hydrogen, ammonia, bio-LNG, and methanol.

HOW RNG BENEFITS FLEETS

Sustainable

RNG reduces lifecycle carbon emissions by up to 300%, making it the only fuel capable of achieving negative carbon-intensity.

Cleaner

RNG-powered engines greatly reduce smog, with NOx levels 90% below current EPA standards.

Available now

A robust RNG fueling infrastructure already exists, with over 600 Clean Energy stations across North America.

Affordable

RNG is a domestic, stable-priced fuel, competitive with diesel. Grant funding and incentives are also available.

Less maintenance

Unlike diesel engines, natural gas engines do not require an active after-treatment, such as a DPF or SCR.

Quieter

Natural gas engines are considerably quieter than diesel engines, a huge benefit to both drivers and communities.

2 IPCC, 2021: Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [Masson-Delmotte, V., P. Zhai, A. Pirani, S.L. Connors, C. Péan, S. Berger, N. Caud, Y. Chen, L. Goldfarb, M.I. Gomis, M. Huang,

K. Leitzell, E. Lonnoy, J.B.R. Matthews, T.K. Maycock, T. Waterfield,

O. Yelekçi, R. Yu, and B. Zhou (eds.)]. Cambridge University Press. In Press

3Alternative Fuels Data Center: Natural Gas Benefits (energy.gov)

Efficient

Choose from either public fast-fill dispensers or private time-fill fueling solutions to fit the needs of your fleet and duty cycle.

Less odor

Drivers and mechanics never go home smelling like diesel- a substantial improvement to their quality of life.

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INTRODUCTION

2023 HIGHLIGHTS

ENVIRONMENT

SOCIAL

GOVERNANCE

2023 DATA AND ADDITIONAL INFORMATION

7

HOW RNG IS MADE

Clean Energy actively produces RNG at numerous dairy farms around the country. Here's how it works:

  • First, we collect manure and place it into a digester. By capturing the biogas as the waste decomposes, we prevent fugitive methane emissions from entering and damaging the atmosphere.
  • Next, the biogas is processed and purified until it is chemically indistinguishable from conventional natural gas.
  • Then RNG simply drops into the existing interstate pipeline system and is routed to Clean Energy fueling stations nationwide.

To learn more about RNG production benefits, see our Environmentsection.

Manure collection

Digester

Gas cleanup

Pipeline injection

CE station

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INTRODUCTION

2023 HIGHLIGHTS

ENVIRONMENT

SOCIAL

GOVERNANCE

2023 DATA AND ADDITIONAL INFORMATION

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Our products and services

CLEAN ENERGY RNG

At Clean Energy, we've made continued progress toward our goal of providing our on-road vehicle customers with 100% RNG by 2025.

In 2023, approximately 89% of the fuel we delivered to on-road vehicle customers was RNG, an increase from 80% in 2022.

We also achieved our goal of having our aggregate fuel carbon intensity at or below zero,4 five years before our initial target date of 2025.

In 2023, Clean Energy's weighted average portfolio carbon intensity for our RNG was -93.6 g CO2e/MJ.

Decreasing the carbon intensity of our RNG is more imperative than ever, considering that methane levels in the atmosphere are now more than two and a half times their preindustrial level.5 According to the Global Carbon Project's Global Carbon Budget published in December 2023 and the International Energy Agency's topic analysis on transport, 37.1 billion metric tons of carbon dioxide were emitted globally in 2022, of which 8.0 billion metric tons, or 22%, came from the transportation sector.

Today, only fuels delivered in California, Washington, and Oregon have a calculated and verified CI, based on the Low Carbon Fuel Standard and Clean Fuels Programs of these respective states. Given the significant impact of reducing carbon intensity, other States are also working

on legislation to introduce LCFS programs.

  1. This weighted average portfolio carbon intensity only accounts for fuel dispensed to on-road customers with a verified carbon-intensity value under the California Low Carbon Fuel Standard.
  2. Greenhouse gases continued to increase rapidly in 2022 | National Oceanic and Atmospheric Administration (noaa.gov)

Clean Energy understands the importance of reporting and reducing our RNG's carbon intensity across CE fueling stations in all regions. We are working on developing a solution that would provide third-party verified carbon intensity to address individual customer needs.

Negative CI RNG can be used to create byproducts to reduce their CI (e.g., hydrogen from autothermal reforming [ATR] with carbon capture and storage [CCS] produced using RNG instead of conventional natural gas).

WHAT IS CARBON INTENSITY?

Carbon intensity, or CI value, is a calculation of the total emissions generated throughout a fuel's entire lifecycle, from source, fuel production and refinement, delivery, transportation, and use in an engine.

These lifecycle emissions, which include both greenhouse gases and criteria pollutants, allow us to understand a fuel's environmental impact from "well-to-wheel."

Most fuels have a positive CI score, meaning they add carbon-dioxide-equivalent emissions to the atmosphere during their lifetime. RNG from dairy manure, on the other hand, has a deeply negative CI value due to the capture of methane emissions in digesters.

CARBON INTENSITY (gCO2e/MJ)

100

100.6

36.0

41.6

42.8

46.4

33.3

RNG

RNG

Zero

Food waste

Manure

Emissions

Gasoline/

Hydrogen

Renewable

Electric

RNG

Diesel

diesel

vehicle

Wastewater

-54.1

-100

-200

-300

-327.6 Average CI

-400

-500

-485.5

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RNG PRODUCTION

Clean Energy has traditionally obtained our fuel supply through contracts with third-party suppliers, and we're one of the major RNG offtakes in the country. We have also been working toward establishing ourselves as RNG producers by developing dairy-RNG projects in partnerships with bp and TotalEnergies.

As of 2023, we have two dairy-RNG projects in operation, with five under development.

Our partnership with bp started in 2020 and has seen $455.5 million committed for RNG project development. Currently, there are five dairy-RNG projects under construction, four of which will be completed in 2024. Drumgoon Dairy in Lake Norden, South Dakota began producing at the end of 2023, and they are estimated to supply 1.66 million GGEs of negative carbon-intensity RNG annually when at full capacity. Collectively, the six dairy-RNG projects with bp are currently estimated to produce up to 11.1 million GGEs of RNG annually.

Since 2021, our partnership with TotalEnergies has committed up to $400 million to produce negative carbon-intensity RNG and to build supporting infrastructure for the distribution value chain. The first joint venture dairy project at Del Rio Dairy

in Friona, Texas began flowing RNG in 2023. This project is estimated to produce up to 1.1 million GGEs of RNG annually, all of which will be available for sale to the vehicle fuels market.

ANNUAL SUSTAINABILITY REPORT 2023

TABLE OF CONTENTS

INTRODUCTION

2023 HIGHLIGHTS

ENVIRONMENT

SOCIAL

GOVERNANCE

2023 DATA AND ADDITIONAL INFORMATION

10

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Clean Energy Fuels Corporation published this content on November 09, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 09, 2024 at 21:20:06.572.