CNG Fuels acquires stake in Renewable Transport Fuel Services
Renewable biomethane supplier for heavy freight, CNG Fuels, has acquired a majority stake in Renewable Transport Fuel Services (RTFS).
The deal sees the firm buying a stake in what it claims is the largest renewable biomethane sourcing company for UK transport. A new holding company, ReFuels, has been established to reflect the growing scope of the business. ReFuels combines CNG Fuels’ UK network of public access Bio-CNG refuelling stations with RTFS’s upstream biomethane sourcing activities to create a fully integrated renewable biomethane suppliers for heavy transport, it said.
ReFuels will keep the CNG Fuels brand name for its Bio-CNG refuelling station network with the company serving more than 80 individual customer fleets, including Amazon, Royal Mail, Aldi, Waitrose , Warburtons and EVRi. Around 1,300 HGVS refuel at its stations daily with more than 2,000 trucks by 2024, based on confirmed orders.
CNG Fuels currently has ten stations in operation, enabling low carbon deliveries from Inverness to Cornwall, with three further sites in construction and four more by Q3 2023. Most sites are owned in its 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.
Speaking about the deal, 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”.
Image courtesy of CNG Fuels