CNG Fuels, a UK supplier of biomethane compressed natural gas for HGVs, has received an £80m investment to substantially extend its refuelling network.
The private equity investment from Foresight Group will fund the acquisition of CNG Fuels’ five existing biomethane refuelling sites, while also facilitating the construction of an additional 14 stations on the UK’s primary trucking routes over the next two years. HGVs that run on biomethane produce 80 per cent fewer emissions than their diesel counterparts, and the technology is viewed by some as pivotal in helping to decarbonise heavy transport, which is resistant to electrification.
“We expect the number of CNG trucks on UK roads to double in 2021 as fleet operators take action to support the government’s Net Zero targets,” said Baden Gowrie-Smith, chief financial officer of CNG Fuels.
“This exciting partnership with Foresight demonstrates their enthusiasm for biomethane as a solution to decarbonise heavy transport at scale, and the near-term development of more stations will enable us to serve our customers even better by delivering carbon neutral Bio-CNG nationwide. We hope this will give even more brands the confidence to switch from diesel.”
According to the companies, all the biomethane supplied by CNG Fuels is approved under the Department for Transport’s Renewable Transport Fuel Obligation (RTFO) scheme as renewable and sustainable. From 2021, the fuel will start moving towards carbon neutrality as it will begin to be sourced from manure, which is itself a significant emitter of greenhouse gases. Due to the lower fuel duty that it attracts, biomethane is also claimed to be around 35-40 per cent cheaper than diesel at the pump, making it an attractive prospect for fleet operators.
“Foresight is delighted to be supporting and working with CNG Fuels,” said Matt Hammond, partner at Foresight Group.
“It is very pleasing to see attractive investment opportunities right across the sustainable infrastructure sector and that our investments have real impact in the decarbonisation of the transport sector.”