• CNG Fuels to acquire a majority stake in Renewable Transport Fuel Services Limited to create one of Europe’s largest fully integrated renewable biomethane suppliers for heavy transport
• Acquisition will help meet the skyrocketing demand for biomethane
• New holding company, ReFuels, established to reflect the growing scope of the business

CNG Fuels (www.cngfuels.com), Europe’s leading supplier of renewable biomethane for heavy goods vehicles (HGVs), today announces it will acquire a majority stake in Renewable Transport Fuel Services Limited (RTFS), the largest renewable biomethane sourcing company for UK transport.

A new holding company, ReFuels (https://refuels.com), has been established to better reflect the growing scope of the business. ReFuels combines CNG Fuels’ rapidly growing UK network of public access Bio-CNG refuelling stations with RTFS’s upstream biomethane sourcing activities to create one of Europe’s largest fully integrated renewable biomethane suppliers for heavy transport.

Philip Fjeld, CEO of ReFuels and CNG Fuels said: “Running trucks on Bio-CNG has now become “business as usual” for fleet operators and CNG trucks are being adopted en masse UK-wide as fleet operators recognise Bio-CNG as the most cost-effective and lowest carbon alternative fuel to diesel available today. In 2022 alone, we saw dispensed volume increase by 62% compared to 2021 and we expect to surpass this growth rate in 2023.

“Acquiring a majority stake in Renewable Transport Fuel Service enables us to become a fully-integrated supplier of 100% sustainable and renewable biomethane – from the producer down to the dispenser nozzle. Under our new ReFuels structure, we are very well-positioned to accelerate our sustainable growth rate and help the sector decarbonise even faster”.

ReFuels will keep the CNG Fuels brand name for its Bio-CNG refuelling station network, to maintain its dominant UK brand profile. The company serves more than 80 individual customer fleets, including household brands such as Amazon, Royal Mail, Aldi, Waitrose , Warburtons and EVRi, amongst many others. Around 1,300 HGVS refuel at its stations daily and this number is expected to reach more than 2,000 trucks by this time next year based on confirmed orders from its customers. 

CNG Fuels currently has ten stations in operation, enabling low carbon deliveries from Inverness to Cornwall. Three further sites are in construction, with four more going into construction by the end of Q3 2023. Most sites are owned in its successful joint venture with Foresight Group, CNG Foresight. The 10 existing sites can refuel around 5,000 high mileage HGVs per day, and the new sites will increase total capacity to around 8,500 HGVs per day by the middle of 2024, enabling 5% of the UK’s heaviest truck fleet to access biomethane along the UK’s major trucking routes.

The acquisition of RTFS will further strengthen the business’s capability to meet its customers’ growing appetite for bio-CNG and will also provide significant benefits to biomethane producers who will now have long-term direct access to the downstream customer demand.

                                                                        ENDS

For more information and to arrange interviews, please contact:

Jessie Wilson                 jessie.wilson@greenhouse.agency           07763540629

Will Spragg                    will.spragg@greenhouse.agency              07528307499

NOTES TO EDITORS

About CNG Fuels

CNG Fuels was established in 2014 and is today the UK market leader for the supply of Bio-CNG (renewable and sustainable biomethane fuel) for commercial vehicles. Its gas is sourced entirely from renewable and sustainable biomethane, which is cheaper and emits less carbon well-to-wheel than any other HGV fuel. The biomethane is made from a waste feedstock, approved under the Renewable Transport Fuel Obligation RTFO), and generates Renewable Transport Fuel Certificates (RTFC).

Later this year, the company will offer carbon neutral biomethane derived from manure at the same price as the renewable biomethane fuel it currently supplies. It also consulting on how its network of refuelling stations can best accommodate low-carbon hydrogen and battery electric technologies for HGVs, so that it can support customers when these become commercially viable.

CNG Fuels is also the country’s only dedicated provider of public access Bio-CNG refuelling infrastructure. It operates the UK’s six highest capacity CNG stations, in Warrington, Northampton, Leyland (Lancashire), Crewe (Cheshire), Avonmouth, Erdington and Knowsley. The Bellshill site is the latest station to open, with the latest under construction in Avonmouth.  For more information on CNG Fuels, visit www.cngfuels.com.

The post CNG Fuels acquires largest supplier of renewable biomethane to UK transport and forms new Group to fast-track HGV decarbonisation appeared first on CNG Fuels.

CNG Fuels, Europe’s leading supplier of renewable biomethane for transport, today announces the opening of its tenth low-carbon HGV refuelling station in Castleford, as demand for the fuel takes off, with the number of bio-CNG powered trucks on the road doubling in the last year alone.

The new station means that CNG Fuels can now refuel 5000 HGVs across the UK daily, saving up to 1,600 tonnes of CO2 every day, or 584,000 tonnes of CO2 annually when compared to diesel – equivalent to powering over 113,000 homes for an entire year.

HGVs account for 4.2% of UK carbon emissions, putting the sector at the core of the UK’s goal of achieving net zero by 2050. Last year, the UK government set out plans to ban the sale of new petrol and diesel HGV from 2040 , heightening the urgency for fleets across the country to find alternative solutions to petrol and diesel HGVs.

Renewable biomethane – derived from food waste and manure by CNG Fuels – is the lowest carbon, most cost-effective alternative fuel to diesel available to HGVs today, cutting emissions by over 90% whilst providing up to a 40% lifetime fuel cost saving.

The new station in Castleford is the company’s 10th operational site, extending the range of low-carbon deliveries into North East England. The site can refuel up to 500 HGVs per day, cutting 67,500 tonnes of greenhouse gas emissions annually when fully utilised – equivalent to the annual emissions of over 40,000 cars. Most of the UK is already within a 300-mile round trip of a CNG Fuels renewable biomethane refuelling station and the site will put Leeds, Hull, and Wakefield within its range, serving local and passing fleets using the M1, A1 and M18.

Located in the Normanton Industrial Estate, CNG Fuels’ newest station will give multiple existing CNG Fuels customers, including major household brands and new local fleet operators, access to low carbon biomethane.

Philip Fjeld, CEO of CNG Fuels, said: “Fleet operators around the world are urgently seeking ways to cut emissions from their fleets. In the UK, fleet operators can do so today by adopting biomethane. Our fast-growing network of refuelling infrastructure has made biomethane more accessible than ever before, and fleets – ranging from local hauliers through to major household brands – are dramatically cutting emissions every day. Our newest station in Castleford is building on our existing network, enabling low carbon deliveries all the way from Inverness to Cornwall.”

Aldi becomes the latest major brand to adopt biomethane
Aldi, the UK’s fifth-largest supermarket, is the latest major brand to adopt bio-CNG HGVs and is among many other household brands, including Royal Mail, Waitrose, and Warburtons to use CNG Fuels’ newest site.

Liz Fox, National Corporate Responsibility Director, UK at Aldi, said: “Aldi is committed to reducing our carbon footprint, and adopting bio-CNG HGVs is another step forward in our plans to cut emissions from our UK fleets. CNG Fuels’ latest station in Castleford opens the door to major transport networks into the North East, and their growing network will only continue to extend the number of low carbon deliveries that we can make across the country every day.”

Demand for the fuel from fleet operators is growing at around 100% per annum, and CNG Fuels forecasts the demand to continue to accelerate, with around 10% of the UK’s high-mileage HGV fleet expected to run on Bio-CNG by 2025. CNG Fuels has seen rapid growth in demand since the start of 2022 as the benefits of Bio-CNG begins to reach the mass market. Orders for 6×2 Iveco trials – one of the latest CNG-ready HGVs to be launched to the market – have reached an all-time high as the market moves away from early adopting large fleets, to fleets of all sizes.

The Castleford station joins nine other refuelling stations operated by CNG Fuels across the UK, including the world’s largest public access biomethane refuelling station in Avonmouth near Bristol. The company plans to have 20 large public access stations in operation by the end of 2023, with sites in Newton Aycliffe and Corby entering the construction phase at the end of July 2022.

Last year the company announced plans to host hydrogen fuel trials across its sites to ensure stations are ready to support a multi-fuel future as different technologies develop and become commercially viable. The first hydrogen trails are due to begin this year and by 2025, CNG Fuels plans to allocate 100 acres of its land to public access hydrogen refuelling.

CNG Fuels was recently announced as the winner of the British Renewable Energy Award for Low Carbon Transport by the REA (The Association for Renewable Energy & Clean Technology), a recognition of the company’s role in enabling fleets across the UK to drastically reduce emissions from road transport.

The post CNG Fuels opens its tenth biomethane refuelling station as demand for low-carbon fuel skyrockets by 100% across the UK appeared first on CNG Fuels.

CNG Fuels, the UK’s leading provider of renewable biomethane for HGVs, today announces the opening of the world’s largest public access biomethane refuelling station in Avonmouth, near Bristol. The site will meet the growing demand from major brands to cut emissions from haulage and save money, while also supporting the decarbonisation of the UK’s road haulage sector, responsible for 18% of total UK road transport emissions¹.

Located in the heart of Avonmouth, near the M4/M5 junction just outside Bristol, the site is capable of refuelling 80 HGVs per hour from 14 high-speed dispensers, making it the largest public access biomethane refuelling station in the world. When fully utilised, the station will cut 70,000 tonnes of greenhouse gas emissions per year by taking diesel HGVs off the road. The site is part of CNG Fuels’ nationwide network of eight renewable biomethane refuelling stations which covers the length and breadth of the country, enabling low carbon deliveries from Inverness all the way down to Cornwall. The company is aiming to build 12 additional stations each year to cater for growing demand.

Demand for renewable biomethane has increased by 1,000% over the last five years as brands across the country urgently seek to cut haulage emissions in line with the UK’s net zero strategy. The demand is predicted to increase five-fold over the next five years as the UK’s 2040 ban on the sale of new diesel HGVs approaches.

The new station is closely situated to existing customers, such as Royal Mail, Warburtons and Amazon, helping major household brands to slash haulage emissions and align with the UK’s net zero targets. Lidl supermarket is the latest brand to convert its fleets to renewable biomethane.

Jason Wild, Distribution and Recycling Consultant of Lidl, said: “We are committed to reducing our environmental impact across our entire operations and switching our fleets over to renewable biomethane instead of diesel is a crucial step. CNG Fuels’ new station in Avonmouth is a key location to allow us to make low-carbon deliveries across the Southwest”

John Dinham, Owner of John Dinham Transport, said: “Running our fleets on 100% renewable biomethane is a win-win for our business and for our customers. It has been a huge selling point for us, especially amongst our bigger corporate customers who have pledged to reduce their carbon footprint. We are committed to significantly reducing emissions from our fleets and renewable biomethane is the perfect solution to enable us to do so now

We have more biomethane trucks on order and the new site in Avonmouth puts the world’s largest biomethane refuelling station on our doorstep, making it easier than ever to refuel our fleet with Bio-CNG. As our fuel supplier, CNG Fuels’ service is second to none, they have made us feel very comfortable about investing in bio-CNG technology”

100% of the fuel supplied by CNG Fuels is renewable and sustainable biomethane, sourced from food waste and approved under the Department for Transport’s Renewable Transport Fuel Obligation (RTFO) scheme. Renewable biomethane is the lowest carbon and most cost-effective alternative to diesel for HGVs, cutting greenhouse gas emissions by up to 90% and reducing lifetime vehicle costs by 30%-40%.

Philip Fjeld, CEO of CNG Fuels, said: “Brands across the country are under more and more pressure to cut emissions from fleets and renewable biomethane is the only commercially viable solution on the market today. We are continuing to see high increases in demand and with the recent news of the 2040 ban on new diesel HGV’s, we expect the pace of demand to continue.

We are rapidly expanding our nationwide network of refuelling stations, ensuring sites are strategically located across major trucking routes to make them as accessible as possible. The new site in Avonmouth is in a key location for many of our customers, allowing them to expand the reach of their low carbon deliveries into the South West and Wales. In addition to our expanding network, we are also preparing for a multiple fuel future to ensure that when new technologies emerge, the infrastructure will already be in place to cater to demand”

The site joins eight existing refuelling stations already operated by CNG Fuels, with most of the country already within a 300-mile range of a CNG Fuels refuelling station. By 2023, the company will have 20 large public access stations in operation to meet the exponential growth in demand.

Last year the company announced plans to host hydrogen fuel trials across its expanding UK-wide network to ensure stations are already to support a multi-fuel future as different technologies develop and become commercially viable. The first hydrogen trails are due to begin this year and by 2025, CNG Fuels plans to allocate 100 acres of its land to public access hydrogen refuelling.

¹ transport-and-environment-statistics-2021.pdf

The post World’s largest biomethane refuelling station opens in Avonmouth, supporting major brands to reach net zero targets and cut costs appeared first on CNG Fuels.

CNG Fuels, the UK’s largest supplier of alternative low-carbon fuels for HGVs, today announces plans to host hydrogen fuel trials across its rapidly expanding UK network of public access biomethane refuelling stations to support the future decarbonisation of HGVs.

A new branch of the company, HyFuels, has been established to identify the best hydrogen production pathways and infrastructure solutions for HGVs so it can support customers in adopting hydrogen quickly and easily when it becomes commercially viable. The first trials are due to begin in mid-2022, with the company currently in discussions with international partners and undertaking feasibility studies across its upcoming development sites. By 2025, the company plans to allocate 100 acres of its land to public access hydrogen refuelling

Philip Fjeld, CEO of CNG Fuels, said: “HGVs alone account for 5% of all UK emissions, making their decarbonisation one of the single most important things the UK can do to meet our net zero ambitions. Renewable biomethane is and will continue to be the most effective decarbonisation solution for heavy transport for many years. However, we have launched HyFuels to ensure we are ready to support our customers’ journey to a multi-fuel future as new technologies become commercially viable and the fuel readily available.”

HGV fleet operators face a significant challenge to rapidly switch to more sustainable fuel sources to meet climate targets. HGVs account for 16% of UK transport emissions, despite representing just 5% of total road miles on UK roads.[i] For high-mileage HGVs, renewable biomethane is the lowest carbon, most cost-effective alternative fuel today, cutting emissions by more than 85% and lifetime costs by 30-40% compared to diesel.

Mid-weight trucks (<26 tonnes) will be among the first to be commercially viable for new technologies such as hydrogen. The trials carried out by HyFuels will be particularly important for hauliers that operate <26 tonne trucks, helping them to navigate challenging decarbonisation targets proposed by government, including a potential ban on diesel engines by 2035.

CNG Fuels already supports major fleets with 100% renewable biomethane sourced from food waste and manure across its UK-wide network of public access refuelling stations. Major brands already on board include the John Lewis Partnership, Waitrose, Hermes, Warburtons, and Royal Mail. Demand for the fuel has been doubling every year for the last five years. CNG Fuels expects that with the rapid expansion of its UK wide network, this will continue to accelerate with around 10% of the UK’s high-mileage HGV fleet running on Bio-CNG by 2025.

However, in future, other low carbon technologies will start to become more prevalent as technology develops and costs fall. The Committee on Climate Change expects hydrogen-powered HGVs to play a major role in decarbonising freight transport from 2030 onwards and the government’s Net Zero Strategy, released earlier this month, includes a policy to expand trials for zero emissions HGV technologies.[ii]

HyFuels is already in advanced discussions with major international providers of both hydrogen infrastructure and the fuel to deploy their first trials. Among the first initiatives will be a number of hydrogen-ready mobile refuelling units that are able to quickly deliver hydrogen to refuelling sites on demand.

Findings from the trials will be used to inform government, industry, and existing customers on the effectiveness of different hydrogen solutions and outline key infrastructure considerations for a hydrogen refuelling network. The company is also planning to incorporate the findings into a wider business strategy, with a complete roadmap for companies to switch fleets from diesel to net zero fuels.

CNG Fuels currently operates seven public access bio-CNG refueling stations and plans to open at least 12 more every year from 2022. The company plans to have 60 stations in operation by 2026, supporting the mass adoption of renewable biomethane fuel by fleets across the UK.

Baden Gowrie-Smith, CFO of CNG Fuels and head of hydrogen development for HyFuels added: “We build our sites with our customers’ future needs in mind, acquiring additional space so we can expand as demand grows. This means up to 30% of our future land will be perfectly placed to deploy multi-fuel trials on some of the busiest haulage routes in the UK. As soon as these technologies are viable, we will be ready to support our customers in adopting the latest and greatest in low carbon technology. With increasingly aspirational decarbonisation targets set by government, our role is to support fleets in their journey to net zero, making it as simple and affordable as possible.”

[i] HM Government: Net Zero Strategy

[ii] Department for Transport: Transport and Environment Statistics: 2021 Annual Report

The post CNG Fuels to host hydrogen trials for HGVs to decarbonise UK fleets and prepare customers for a multi-fuel future appeared first on CNG Fuels.

Steven Gray, Warburtons National Transport Manager, said: “Switching our HGV fleet from diesel to biomethane will be critical for reaching our transport decarbonisation goals. CNG Fuels’ new low-carbon refuelling station in Avonmouth is perfectly situated for our distribution centres in the region and will extend the range of low-carbon deliveries we can make across the country”.

100% of the fuel supplied by CNG Fuels is renewable and sustainable biomethane, approved under the Department for Transport’s Renewable Transport Fuel Obligation (RTFO) scheme. Renewable biomethane is the lowest carbon, most cost-effective alternative to diesel for HGVs – it is 35%-40% cheaper and cuts greenhouse gas emissions by 85 – 90%. From next year, CNG Fuels will dispense fully carbon neutral fuel by sourcing biomethane from manure. The gas is currently sourced from waste feedstocks, such as food waste.

HGVs account for 4.2% of UK carbon emissions[1], so decarbonising the sector is essential to meet the UK’s goal of achieving net zero by 2050. Demand for the fuel from fleet operators is already growing at around 100% per annum, with CNG Fuels forecasting this will continue to accelerate, and that by 2025 around 10% of the UK’s high-mileage HGV fleet will be running on Bio-CNG.

Philip Fjeld, CEO of CNG Fuels, said: “Avonmouth is a key site for CNG Fuels’ expansion across the UK. The site will allow companies to use low-carbon fuel for regular routes between London, the Midlands, South Wales, Cornwall and Devon. Such a strategically crucial location requires our biggest refuelling station yet. This station will enable even more fleet operators and hauliers to reduce their carbon emissions and save money”.

The post World’s largest biomethane refuelling station will support low-carbon HGV deliveries in Wales and South West appeared first on CNG Fuels.

CNG Fuels has started building Scotland’s first public access renewable biomethane HGV refuelling station, which will allow fleet operators to run their vehicles on low-carbon fuel, support net zero plans and save money, the company announced today.

The station near Glasgow will refuel up to 450 lorries a day when it opens in November, enabling HGVs to make low-carbon deliveries across most of Scotland. Most of England and Wales is already within a 300-mile round trip of a biomethane refuelling station and the new facility will put Inverness and Aberdeen within this range.

Warburtons, the UK’s largest bakery brand, is the latest major name to announce it is adopting biomethane, following companies such as Hermes, John Lewis, Waitrose and Asda. Renewable biomethane, is the lowest carbon, most cost-effective alternative to diesel for HGVs — it is 35%-40% cheaper and cuts vehicle greenhouse gas emissions by up to 85%. From next year CNG Fuels will dispense fully carbon neutral fuel by sourcing biomethane from manure.

Philip Fjeld, CEO of CNG Fuels, said: “Fleet operators keen to cut carbon and save money are switching to biomethane in droves, and our first station in Scotland will play a vital part in our network, allowing gas trucks to make deliveries throughout Britain. Biomethane can play a key role in helping the country meet its net zero targets and it is fitting that the station will open just as Glasgow hosts the UN Climate Summit.”

HGVs account for 4.5% of total UK greenhouse gases – and 4.8% in Scotland – so decarbonising the sector is essential to meet the UK’s goal of achieving Net Zero emissions by 2050. Bio-CNG (compressed natural gas) is the leading commercially available solution at scale to reduce these emissions.

The new station, at the Eurocentral industrial estate off the M8 near Bellshill, is due to open in November. CNG Fuels customers with depots on or close to the estate include Warburtons and parcel delivery company Hermes, which already runs 90 gas trucks.

Steven Gray, Warburtons National Transport Manager, said: “After extensive alternative-fuel vehicle trials, Warburtons has chosen CNG technology, and specifically biomethane fuel, as our preferred strategy to decarbonise our Primary HGV fleet. CNG Fuels’ progressive Bio-CNG Station roll-out plans across the UK will allow us to begin our decarbonisation strategy and the Eurocentral refuelling facility is a key location for our fleet.”

David Landy, Head of Fleet at Hermes, said: “As one of the UK’s largest CNG vehicle operators, the announcement of a Bio-CNG Station in Scotland is welcome news for Hermes. This will allow us to run our Scottish-based fleet on 100% renewable biomethane fuel and push the range of our existing CNG-powered HGV fleet, so vehicles can travel between England and Scotland and take even more emissions off UK roads.”

CNG Fuels is the UK’s leading supplier of Bio-CNG and it has enabled fleet operators to cut emissions by more than 100,000 tonnes since it began dispensing the fuel in September 2016. Demand from customers is soaring and the company expects to sell 90% more biomethane this month than in March 2020.

It currently operates six refuelling stations in England and is rapidly building out a strategic network on major routes. Eurocentral is the first of 14 further stations that are due to be built over the next two years with £80 million of funding from a new partnership with Foresight Group, including two more in Scotland near Larkhall and Livingston.

100% of the fuel supplied by CNG Fuels is renewable and sustainable biomethane, approved under the Department for Transport’s Renewable Transport Fuel Obligation (RTFO) scheme. It is delivered to stations via the existing gas grid where it is compressed into fuel. Low processing, transportation and electricity costs make it a low-cost, clean solution.

Bio-CNG is currently sourced from food waste but CNG Fuels is securing supplies of gas derived from manure to create a fuel that will be carbon neutral overall. It expects to introduce carbon neutral biomethane across from 2022 at the same price.

Manure gives off methane, a greenhouse gas 28 times more powerful than carbon dioxide. Using methane as an HGV fuel prevents it from going into the atmosphere and reduces overall emissions. The EU’s revised Renewable Energy Directive (RED II) recognises biomethane from manure as a carbon negative fuel, and the UK is expected to adopt the same rules in 2022.

ENDs

For more information about CNG Fuels and to arrange interviews, please contact:

Toby Dye Toby.dye@greenhousepr.co.uk +44 (0)750863625

NOTES TO EDITORS

About CNG Fuels
CNG Fuels was established in 2014, and is today the UK market leader for the supply of Bio-CNG (renewable and sustainable biomethane fuel) for commercial vehicles. Its gas is sourced entirely from renewable and sustainable biomethane, which is cheaper and emits less carbon overall (well to wheel) than any other HGV fuel. The biomethane is made from a waste feedstock, approved under the Renewable Transport Fuel Obligation RTFO), and generates Renewable Transport Fuel Certificates (RTFC).

From 2022, the company will supply carbon neutral biomethane derived from manure at the same price as the renewable biomethane fuel it currently supplies. It is also consulting on how its network of refuelling stations can best accommodate low-carbon hydrogen and battery electric technologies for HGVs, so that it can support customers when these become commercially viable.

CNG Fuels is also the country’s only dedicated provider of public access Bio-CNG refuelling infrastructure. It operates the UK’s six highest capacity CNG stations, at Warrington, Northampton, Leyland (Lancashire), Crewe (Cheshire), Erdington, near Birmingham and Knowsley, near LIverpool. It is developing a nationwide refuelling network. For more information on CNG Fuels, visit www.cngfuels.com.

The post Scotland’s first biomethane refuelling station appeared first on CNG Fuels.

Foresight Group backs CNG Fuels with £80 million to build nationwide network of stations offering zero carbon fuel for HGVs
Company to develop 14 new stations as demand from major brands soars

Foresight Group is providing an initial £80 million in funding to CNG Fuels in a partnership to build a nationwide network of refuelling stations that will allow HGVs to run on carbon neutral fuel, the companies announced today.

CNG Fuels opened its fifth refuelling station near Birmingham last week, and the funding will see it develop at least 14 further public access stations on major routes over the next two years, quadrupling the company’s capacity and enabling it to refuel 8,000 vehicles a day. They will make carbon neutral fuel available from Glasgow to Bristol, meeting growing demand from major brands eager to switch their high-mileage, heavily emitting HGVs away from diesel.

The company is the UK’s leading supplier of Bio-CNG (compressed natural gas), the lowest carbon, most cost-effective alternative to diesel for HGVs. The fuel is 35%-40% cheaper than diesel and cuts vehicle greenhouse gas emissions by up to 85%. It will gradually become fully carbon neutral from 2021 as the biomethane is increasingly sourced from manure, a heavy emitter of greenhouse gas.

Richard Morse, Chairman of JLEN, Foresight Group’s listed environmental infrastructure fund, said: “We are pleased to make this investment into biomethane refuelling infrastructure, helping to decarbonise one of the most emission-intensive parts of the transport sector. We consider that the two pillars of better environmental performance and lower cost operations for customers combine to support our investment case and we look forward to supporting the growth of a national biomethane refuelling network.”

Matt Hammond, Partner at Foresight Group, said: “Foresight is delighted to be supporting and working with CNG Fuels. 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.

Foresight Inheritance Tax Fund and JLEN Environmental Assets Group Limited, Foresight Group’s listed environmental infrastructure fund, have provided the initial £80 million funding line for a joint venture with CNG Fuels. It follows the launch of the UK Government’s ten point plan for a green industrial revolution, which included the proposal of a consultation on the phase out of new diesel HGVs to put the UK in the vanguard of zero emission freight.

HGVs account for 4.5% of total UK greenhouse gases , so decarbonising the sector is essential to meet the UK’s goal of achieving Net Zero emissions by 2050. Bio-CNG is the leading commercially available solution at scale to reduce these emissions. Fuel duty on biomethane is lower than on diesel and the government has committed to maintain a clear advantage for gas-powered vehicles until 2032.

Baden Gowrie-Smith, Chief Financial Officer of CNG Fuels, said: “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. 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.”

CNG Fuels is already able to supply 2,000 vehicles a day from its five public access refuelling stations, and a sixth station at Knowsley, near Liverpool, is due to open in January. Its newest station, close to the M6 at Erdington, east of Birmingham, can refuel up to 500 HGVs a day and will support a virtual pipeline, using gas trailers to supply the John Lewis Partnership’s depot at Magna Park, near Milton Keynes.

CNG Fuels has secured a pipeline of development sites on major trucking routes to serve fleet operators throughout Great Britain. Stations due to open next year include major trucking hotspots such as Eurocentral, near Glasgow, Milton Keynes, Avonmouth and Wakefield.

100% of the fuel supplied by CNG Fuels is renewable and sustainable biomethane, approved under the Department for Transport’s Renewable Transport Fuel Obligation (RTFO) scheme. It is delivered to stations via the existing gas grid where it is compressed into fuel. Low processing, transportation and electricity costs make it a low-cost, clean solution.

Bio-CNG is currently sourced from food waste but CNG Fuels is securing supplies of gas derived from manure to create a fuel that will be carbon neutral overall. It expects to introduce carbon neutral biomethane across all sites in 2021 at the same price.

Manure gives off methane, a greenhouse gas 28 times more powerful than carbon dioxide. Using methane as an HGV fuel prevents it from going into the atmosphere and reduces overall emissions. The EU’s revised Renewable Energy Directive (RED II) recognises biomethane from manure as a carbon negative fuel, and the UK is expected to adopt it in 2021 regardless of Brexit.

Ernst & Young LLP acted as financial adviser to CNG Fuels in connection with the transaction and the structuring of the investment from Foresight.

For more information about CNG Fuels and to arrange interviews, please contact:

David Mason david.mason@greenhousepr.co.uk +44 (0)7799 072320

For more information about Foresight Group and to arrange interviews, please contact:
Patrick Evans, Citigate Dewe Rogerson patrick.evans@citigatedewerogerson.com +44 (0)20 7025 6487
Ellie Kakoulli, Foresight Group ekakoulli@foresightgroup.eu +44 (0)20 3667 8100

About CNG Fuels
CNG Fuels was established in 2014, and is today the UK market leader for the supply of Bio-CNG (renewable and sustainable biomethane fuel) for commercial vehicles. Its gas is sourced entirely from renewable and sustainable biomethane, which is cheaper and emits less carbon overall (well to wheel) than any other HGV fuel. The biomethane is made from a waste feedstock, approved under the Renewable Transport Fuel Obligation RTFO), and generates Renewable Transport Fuel Certificates (RTFC).

From late 2021, the company will increasing amounts of carbon neutral biomethane derived from manure at the same price as the renewable biomethane fuel it currently supplies. It is also consulting on how its network of refuelling stations can best accommodate low-carbon hydrogen and battery electric technologies for HGVs, so that it can support customers when these become commercially viable.

CNG Fuels is also the country’s only dedicated provider of public access Bio-CNG refuelling infrastructure. It operates the UK’s five highest capacity CNG stations, at Warrington, Northampton, Leyland (Lancashire), Crewe (Cheshire) and Erdington, near Birmingham. It is developing a nationwide refuelling network. For more information on CNG Fuels, visit www.cngfuels.com.

About Foresight Group (“Foresight”)
Foresight is a leading independent infrastructure and private equity investment manager which has been managing investment funds on behalf of institutions and retail clients for more than 36 years.
Foresight has over £6.5 billion of Assets Under Management, of which £3.8 billion relates to renewable energy infrastructure. It currently manages more than 290 renewable generation assets globally, with a total generating capacity of 2.7GW.
Foresight manages more than 160 solar plants and has more than 1.5GW of solar generation assets under management around the world. Foresight has more than 800MW of wind generation assets across the UK, France, Spain, Germany and Sweden of which 665MW are operational.
Foresight manages more than 40 bioenergy and waste projects processing some 1.8 million tonnes of waste every year, having mobilised more than £1 billion of capital investment into the sector. In addition, Foresight manages 210MW of Reserve Power assets and three utility scale Battery Storage projects providing 46MW of Enhanced Frequency Response services to National Grid.
Foresight is headquartered in London with regional offices in Manchester, Nottingham, Edinburgh, Cambridge, Milton Keynes, Leicester and Guernsey and international offices in Sydney, Rome, Madrid and Luxembourg.
www.foresightgroup.eu

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– UK needs rapid action within transport sector to help achieve net zero emissions by 2050 -the UK can’t afford to wait for the uptake of electric vehicles and hydrogen

Today, twelve companies have united to launch the Renewable Transport Fuel Association (RTFA) which will be the “go to” voice for UK renewable transport fuel producers and suppliers. The founder members comprise all the UK’s producers of liquid renewable fuels, and the majority of the green gas used in UK transport.

As the UK Government sets its sights on becoming net zero in carbon emissions by 2050, transport will be one of the hardest sectors to decarbonize – as a result of heavy road freight, rail where it cannot be electrified, shipping and aviation. For these challenging areas, the RTFA forecasts an enduring role for sustainable renewable fuels. Lighter duty vehicles will transition to electrification, but cars with internal combustion engines will be on the UK’s roads for many decades and will need to be run on renewable fuel.

Commenting on the launch of the RTFA, Gaynor Hartnell, Chief Executive, said:

“Ten years ago, carbon emissions from energy supply were twice that of transport. Now transport is the largest polluter in the economy. Switching fuels is one of the most cost-effective and fastest actions in the fight against climate change, yet the role of fuels in reducing greenhouse gas emissions is overlooked. The RTFA will be the voice of the UK companies that produce and supply these fuels that can make a difference to the environment today.”

The Chairman of the RTFA, Grant Pearson, said:

“We can’t afford to wait; action is required now to reduce transport emissions. Swift and decisive action is more politically challenging for the UK Government than setting longer-term aspirations for the environment. We of course welcome the UK’s zero carbon long-term emission targets, but the environment cannot to wait for the electrification of cars and other forms of transport. Progress needs to be made and our focus is on replacing the fossil fuels used today with greener and cleaner alternatives”.

Notes to editors

The role of the RTFA is

-to promote the benefits of rapid action to decarbonise transport through increasing the use of renewable and recycled carbon transport fuels

-to grow the market for renewable and recycled carbon fuels, and progressively replace fossil fuels used in UK transport (road, rail, maritime and aviation).

The RTFA subscribes to evidence-based policymaking, taking into account the full life cycle impacts of technology and fuel choices. It adheres to the principle of being technology/fuel neutral, encouraging long-term policy measures that focus on the objectives sought, and enabling innovation and competition.

RTFA founder members

Associated British Foods
ABF Associated British Foods owns British Sugar and Vivergo. British Sugar was the first company to manufacture bioethanol in the UK and can produce up to 64,000 tonnes (80 million liters) of bioethanol annually. Vivergo’s £350 million plant, which was one of Europe’s biggest bioethanol producers (could produce up to 420 million litres of bioethanol) and the UK’s largest single-source supplier of animal feed. The Vivergo plant ceased production in September 2018.

ABSL
ABSL is an advanced biofuel technology supplier. It aims to lead the development of advanced biofuel projects around the world as a project owner and supplier of technology to other organizations. Its RadGas technology is proven at scale to be more reliable and efficient than competing pathways that transform waste into fuels.

Alco
Alco group is one of Europe’s largest producers of ethanol for fuel and supplier of ethanol for fuel and non-fuel uses. With headquarters in Brussels and operations on several continents, Alco is one of the biggest producers and distributors of ethanol for fuel in Europe. Globally it provides ethanol to various industries: from cosmetics to pharmaceuticals, biochemistry, food and beverage.

Argent Energy
Argent Energy specialises in the supply of high grade, sustainable diesel for fleet operators, delivering to over 100 UK depots from Kent to Dundee. It produces its biodiesel from waste by-products of other industries – tallow, used cooking oil, fats oils and grease, sewer grease and high FFA products – which have few alternative uses.

Calor
Calor has been long established as a supplier of Liquefied Petroleum Gas (LPG), which is propane and butane, and more recently Liquefied Natural Gas (LNG). Calor, which is part of the European SHV group, is intent on switching to renewable sources of these fuels by 2040 and as such is investing heavily in research in the various production pathways for these advanced fuels both BioLPG and Biomethane/Synthetic Natural Gas.

CNG Fuels
CNG Fuels develops, owns, and operates CNG Refuelling infrastructure and sources 100% Renewable Biomethane or Bio-CNG for its stations. It is rolling out a UK-wide network of reliable and convenient refuelling facilities to service customers’ vehicle fleets and their off-grid energy needs.

Ensus UK Limited
Ensus UK Limited, based in Yarm, UK, operates one of the largest production plants for bioethanol in Europe, in the North East of England, with an annual capacity of 400,000 cubic metres of bioethanol and 350,000 tonnes of dried protein animal feed (DDGS). Ensus is a member of the CropEnergies Group, which is one of the leading European manufacturers of sustainably produced bioethanol for the fuel sector today.

Gasrec
Gasrec sells liquified and compressed renewable biomethane through publicly accessible refuelling stations in strategic locations or bespoke CNG and LNG refuelling facilities that it has designed and built for its customers. It supplies renewable biomethane in its own gas-powered tankers that deliver LNG direct to stations and supply CNG by grid connection or by tanker (known as L-CNG) where a grid connection is not available.

Greenergy
Greenergy is an established supplier and distributor of transportation fuels, and the UK’s largest fuel supplier. Greenergy is also Europe’s largest manufacturer of biodiesel from wastes, and has developed unique supply chains that bring waste oils, collected from restaurants and other food producers to its manufacturing facilities in the UK and the Netherlands.

Nova Pangea
Nova Pangaea’s REFNOVA® technology uses well-proven processes, which are integrated using NPT’s patented proprietary process and technologies, to provide an innovative cleantech solution for a low carbon world. REFNOVA® is a multistage, continuous thermo-chemical process that utilises pyrolysis (steam) to fractionate biomass into its constituent sugars, lignin and chemicals.

Olleco
Olleco is the UK and Ireland’s leading collector of waste oils, fats and food waste and converts organic waste into biodiesel, biomethane and biofertiliser. Olleco works with food manufacturers, retailers and the hospitality industry to provide circular solutions for their organic waste. The company collects waste oils, fats and food waste from 50,000 customer locations across the UK and the Republic of Ireland. The waste oils and fats are refined and converted into biodiesel and the food waste is converted into biomethane which can either be used as a transport fuel, converted into sustainable electricity or for heating. Olleco has won multiple awards for its innovative circular solutions and is committed to fighting the climate emergency.

Velocys
Velocys is an international UK-based sustainable fuels technology company. Velocys designed, developed and now licenses proprietary Fischer-Tropsch technology for the generation of clean, low carbon, synthetic drop-in aviation and road transport fuel from municipal solid waste and residual woody biomass plants currently in construction and development.

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Hermes statistics show that the IVECO Stralis NP reduces CO2 emissions by over 80% when running on biomethane compared with a diesel Euro 6 vehicle, resulting in a reduction in excess of 13,500 tonnes of CO2 across its 90-strong CNG fleet annually. Particulates are also reduced by 99% and NOx by 60%.

Hermes opted for CNG because it is the most environmentally friendly and cost-effective alternative to diesel for HGVs. CNG Fuels has built a Bio-CNG refuelling station next to the Hermes parcel distribution facility in Warrington, which is the largest of its kind in Europe, capable of refuelling 800 trucks a day.

“The Warrington site was developed to cater for large operators like Hermes who are switching their truck fleets to gas power based on the healthy reductions in emissions and fuel costs,”

“Our latest evaluation shows that typically a single CNG truck can achieve a fuel cost saving of between £20,000-£25,000 per annum when compared to a comparable diesel unit and has an average greenhouse gas emission reduction of around 85% when running on our 100% biomethane fuel. We are currently in the process of developing a nationwide network of Bio-CNG refueling infrastructure to support fleet operators like Hermes make the switch to this low-carbon fuel,” explained Peter Eaton, CNG Fuels’ general manager.

100% of the fuel supplied by CNG Fuels is renewable and sustainable biomethane approved under the Department for Transport’s Renewable Transport Fuel Obligation (RTFO) scheme and is currently sourced from waste feedstocks, such as food waste.

The Stralis NP is one of the most sustainable heavy trucks for 40-tonne operation with gas tanks mounted on both sides of the chassis, making it perfect for Hermes’ back-to-base trunking operation. Drivers also benefit from a quieter driving experience.

Its maintenance intervals of 75,000km and absence of EGR, SCR, Diesel Particulate Filter (DPF) or AdBlue contributes to its low-maintenance advantages for the modern-day operator looking to run a green and cost-efficient truck fleet. The IVECO Cursor 9 NP engine develops 1,700 Nm of torque at between 1,200-1,575rpm coupled to a 12-speed automated transmission, the first to be fitted to a gas-fuelled truck.

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Earlier this summer CNG Fuels opened Europe’s largest biomethane filling station in Warrington, and another superstation in Northampton.

Between them, the two sites are capable of refueling up to 1,000 vehicles a day.

Now the company is embarking on what it calls an ‘aggressive’ growth plan that will see it open at least another nine major refueling stations on major UK roads over the next two years.

This will help it keep up with demand for the fuel which, it says, has surged 800%, and wider industry adoption, which it believes will see some 60,000 biomethane fueled commercial vehicles on UK roads by 2030.

But just how big can biomethane and compressed natural gas become when other options such as electric and hydrogen are so heavily touted as the next big thing?

This week TNB spoke to Peter Eaton, General Manager of CNG Fuels, to find out more about the fast-growing company’s plans, hopes and ambitions.

What exactly is CNG?

CNG stands for Compressed Natural Gas.

Bio-CNG, or compressed biomethane differs from fossil-derived CNG or (Liquefied Natural Gas) as it’s a bi-product derived from the decomposition of organic matter, such as food and animal waste.

Once collected, biomethane is injected into the gas pipeline network from where it can be delivered to our refuelling stations for use in CNG vehicles.

CNG Fuels only supplies Renewable Transport Fuel Obligation (RTFO) approved bio-CNG, which is a 100% renewable transport fuel.

And what are the advantages of CNG vehicles?

In short, it allows fleet operators to massively reduce their carbon emissions while also saving money.

It also has the benefit of delivering this without any significant compromise to range and payload.

How do you begin working with fleets on the adoption of CNG?

The crucial part for us is building trust with fleets and developing their belief in the technology and financials.

We’re always in contact with potential customers – usually customers who know of other fleets that are seeing results or that are based around one of our refuelling stations – and our strategy is to run real world trials with them.

Usually, we’ll give them a demo vehicle to run on trial and we’ll monitor results for a three of four-week period. At the end of the trial we’ll prepare a detailed feedback presentation that will compare the CNG vehicle’s operation to that of one of their diesel units.

We then work up numbers based on annual mileage and create a payback model that shows the financial gains and reduction in GHG emissions they can make with CNG.

Typically, based on an annual mileage of 100k, that payback comes in between one and two years and the savings made over the lifetime of a vehicle can be anywhere between £75,000 and north of £100,000.

These financial savings are so significant because the cost difference between CNG and diesel is large.

What’s involved in converting a fleet?

There’s absolutely no conversion process involved. These are full production models supplied directly by OEMs, the biggest of which currently are Scania and Iveco.

There are all sorts of models out there already – everything from 3.5 tonnes up to 44 tonnes – and all of them are commercially viable.

One of the big advantages, unlike electric or hydrogen, must be that there’s no change of mindset required?

That’s right. John Lewis actually describes CNG as ‘business as usual’.

That’s because there’s been no major changes to their operation involved to change their fleet to CNG. Essentially they’re running exactly the same vehicle but with a different engine in it.

In terms of operation, there’s nothing drastically new to get to grips with.

Take refueling. You don’t have to plug in and recharge or wear all sorts of protective equipment like you do with cryogenic fuel. You just go to the refuelling station, connect up your nozzle, it fills automatically with fuel and then you drive away. The whole process is extremely simple and takes maybe a minute or two longer than filling with diesel.

Presumably you wouldn’t be investing in this infrastructure if you didn’t see a long-term future in it?

Exactly.

We believe there’s nothing around the corner that’s going to trump biomethane in the next 10-20 years and it’s only going to become more attractive to fleet operators as we move forward.

At the moment fleets are attracted by the cost savings and also by the 85% carbon reduction offered by CNG as opposed to diesel.

Next year, we will be sourcing a significant amount of our biomethane from cow manure and that will make us the first fuel to be certified as carbon negative.

That will be huge, allowing fleets to make over 100% savings in carbon. You can’t get any greener than that!

So you’re not worried about electric or hydrogen?

In our view electric for long haul HGVs is a long way away and we’re not going to get it anytime soon.

We know it’s coming for sure, but for now the batteries needed for long haul HGVs would weigh too much and would mean sacrificing too much payload for them to be viable.

Again, with hydrogen, we anticipate it’s going to be a decade or two away. For now it’s too expensive and the business case doesn’t really stack up in our opinion.

When one of these technologies comes of age, we may have to look again at our business model but for now we’re very confident that CNG and biomethane has a long future.

You’ve described your growth plans as ‘aggressive’. What’s involved?

Over the next couple of years we’re going to be expanding at a rapid rate with at least nine new refueling sites operating across the UK.

Our aim is then to get one new site up and running each month from 2022.

Our next new site will open in Erdington in October, and that will be followed by another in Knowsley in November. After that, we plan to open in Newark-on-Trent in Q1 2021, and then we’ll add sites in Avonmouth, Bellshill, Larkhall, Castleford and Corby before the end of the year.

After that we’re just going to keep building them to meet demand.

OK, so just how big do you see CNG becoming in the UK?

It’s hard to put exact numbers on it but there’s huge potential.

Our predictions suggest there could be around 60,000 units on the road by 2030 and by the end of 2021, I’d certainly envisage around 1,000 HGVs, preferably many more.

Lots of operators work beyond UK borders though. Is CNG a viable option for those travelling to mainland Europe?

Absolutely. We recently ran a trial with a fleet operating out of Avonmouth. They took the demo vehicle on one of their routes that goes through France, Germany and Belgium. They refueled several times along the way and experienced no problems. CNG is very commonly available in Europe, even if the stations aren’t necessarily HGV-specific.

Finally, what’s your message to any fleets looking into CNG/Bio-CNG?

That they’re doing the right thing.

CNG is a bit of a no brainer in our world and that is what our customers think too.

There are significant carbon savings to be had and massive fuel cost savings as well.

I know some fleets that have saved well over £100,000 over the lifetime of a vehicle versus a diesel.

We’re working flat out to grow the refuelling network on major trunking routes, so it becomes easier and easier for fleets to make the switch.

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