CNG Fuels

Natural gas fuel supplier CNG Fuels is promising to cut fleet operators running costs with the launch of its renewable biomethane fuel, which it claims is 40% cheaper than diesel and emits 70% less CO2.

The company has already signed a deal to supply the fuel to retailers Waitrose, John Lewis and Argos, as well as haulier Brit European.

CNG biomethane will retail at 65p per kg, which includes fuel duty but not VAT. The firm says the retail price is the equivalent of 49p a litre for diesel.

CNG Fuels is targeting hauliers operating HGVs travelling around 125,000 miles a year, since HGVs covering this mileage will recoup the extra cost of the more expensive CNG-powered trucks within three years .

The trucks also meet the current Euro-6 emission standard, and are claimed to be up to 50% quieter than diesel-powered units.

The renewable biomethane gas, which is harvested through the processing of waste generated by food production, is approved under the DfT’s Renewable Transport Fuel Obligation (RTFO) scheme.

Philip Fjeld, CEO of CNG Fuels, said: “Renewable and sustainably sourced biomethane is the most cost-effective and lowest-carbon alternative to diesel for HGVs, and is attracting increasing interest.

"We are expanding our refuelling infrastructure nationwide to help fleet operators save money, cut carbon and clean up our air. We are proud to be the first company in the UK to offer its customers RTFO-approved biomethane, and are pleased to be able to do so at the same price as fossil fuel gas.”

Justin Laney, general manager central transport at the John Lewis Partnership, said: “We are committed to reducing our carbon emissions and playing our part in tackling climate change.

"Renewable biomethane gives us the opportunity to make our fleet cleaner and quieter and, with significant cost savings, there is a compelling business case to switch from diesel”.