Landi Renzo and Clean Energy Combine Compressor Businesses
Landi Renzo and Clean Energy Fuels are combining their compressor manufacturing subsidiaries to form a new standalone company that will become one of the leading global suppliers of natural gas compressors and other related products. Landi Renzo’s SAFE, with a strong presence in Europe and Asia, and Clean Energy Compression, which is well established in the North and South America markets, will combine manufacturing and support operations and equip an international sales team with an expanded line of compressors.
Upon closing, which is anticipated before the end of the year, Landi Renzo will own 51 percent of the new company and take over operational management, while Clean Energy will retain a 49 percent ownership. Andrew J. Littlefair, President and CEO of Clean Energy, will serve as the chairman of the board. The combined company will be headquartered in San Giovanni Persiceto (BO), Italy and retain Clean Energy’s manufacturing operation in Chilliwack, British Columbia, Canada.
“The world is rapidly waking up to the harmful impact that diesel is having on air quality,” said Cristiano Musi, who is currently Group CEO of Landi Renzo and will also be the CEO of the new company. “Natural gas is an obvious alternative for vehicles because it burns much cleaner, is plentiful around the world and there is a growing engine portfolio to choose from. This newly formed compressor company will be uniquely positioned to take advantage of the trend towards natural gas with a global footprint and a great product offering.”
The new company will be able to take advantage of its global positioning, product offering and market penetration required to meet the growing demand of transportation fleets that seek solutions to replace diesel. Strict environmental policies are being adopted around the world to address air quality problems caused by polluting NOx emissions. Improved natural gas engine technology and a more abundant supply of renewable natural gas (RNG) allows some large vehicles to reduce their emissions by 90 percent and cut climate-changing greenhouse gases by 70 percent versus diesel.
The combination of SAFE and Clean Energy Compression will allow the new company to automatically achieve leading positions in Europe and North American and lay the foundation to accelerate growth in new geographies of the Middle East, Africa and Asia.