CNG Fuels makes upstream biomethane acquisition

CNG Fuels has 10 Bio-CNG (compressed natural gas) stations across the UK, serving more than 80 different customer fleets and a total of around 1,300 HGVs daily. The company claims that biomethane can cut emissions compared to diesel by up to 90 per cent and is the most cost-effective way to reduce the environmental impact of HGVs today. According to CNG Fuels, RTFS is the largest renewable biomethane sourcing company for UK transport.

A new holding company, ReFuels, will now sit above CNG Fuels and RTFS, combining upstream biomethane sourcing with downstream delivery to HGVs on the roads. It’s claimed that ReFuels will be ‘one of Europe’s largest fully integrated renewable biomethane suppliers for heavy transport.’

“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,” said Philip Fjeld, ReFuels and CNG Fuels CEO.

With HGVs accounting for 4.2 per cent of UK carbon emissions, multiple technologies are competing to decarbonise the sector, including batteries and hydrogen, as well as biomethane. CNG Fuels claims demand for Bio-CNG grew by 62 per cent in 2022, with the likes of Amazon, Royal Mail, Aldi, Waitrose, Warburtons and EVRi using it in their fleets. By 2024, CNG Fuels plans to have seven more stations in operation. This will expand its network’s capacity from 5,000 to 8,500 HGVs per day, representing around 5 per cent of the total UK HGV fleet.

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