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CNG Fuels has secured a £25m five-year debt facility to help fund the construction of three new high-capacity Bio-CNG refuelling stations, as the company ramps up its drive to double its UK-wide dispensing capacity by the end of 2028.
The new stations, which include confirmed sites at Magor in South Wales and Swindon, will increase the capacity of CNG Fuels’ network to more than 12,500 HGVs per day, which CNG Fuels said will help drive future orders from existing and new customers, including strong uptake of the new, larger 6x2 gas-powered trucks.
CNG Fuels, which is 40% owned by ReFuels, plans to build out at least nine high-capacity stations over the next three years, complemented by a fleet of additional mobile refuelling units (MRS), bringing the total capacity to more than 20,000 HGVs by the end of 2028.
The station roll-out will be fully funded through cash flow from operations and the debt facility.
Philip Fjeld, CNG Fuels chief executive and co-founder of ReFuels, said: “We are progressing the next milestones in our growth plan backed by rapidly increasing operational cash flows and the new debt facility.
“This enables us to capitalise on the fast-growing demand for Bio-CNG driven by fleet owners transitioning to 100% renewable biomethane to meet decarbonisation targets while reducing fuel costs.”
Biomethane delivers 85 - 90% lower CO₂ emissions and 25% lower costs versus diesel and up to 40% lower cost compared to HVO biodiesel, according to research.
CNG Fuels’ integrated platform combines access to renewable biomethane with ownership of a public access fuelling infrastructure. Around 2,100 HGVs currently refuel through the network, with more than 900 additional trucks expected over the next 12 months.
The company estimates it will reach an annual dispensing capacity of over 780 million kilograms of biomethane by the end of 2028, equivalent to two million tonnes of CO₂ savings per year compared to diesel.
The five-year debt facility agreement with Foresight, which has an existing shareholding in CNG Fuels, followed a competitive market process.
GNG Fuels said the debt facility was attractive due to its 9.5% fixed interest rate and flexible prepayment terms, “providing a cost-effective solution today and enabling access to lower-cost funding for future developments”.
Construction has already started on the Magor site. The new station, owned and operated by CNG Fuels, is strategically located near the M4 motorway and close to two international airports, the Port of Newport and distribution bases for major operators, including Tesco and AB InBev.
Currently 2,100 HGVs refuel daily at CNG Fuels’ 16 stations and the company said it has a fast-growing order book and rapid uptake of the new, larger 6x2 vehicles, with Bio-CNG now being “mass-adopted”.
Fjeld added: “CNG Fuels will provide biomethane to trucks travelling the M4 corridor, one of the UK’s most important freight routes, at Magor and from a planned site in Swindon.
“The new stations are part of the plan to expand our clean fuel infrastructure network, doubling the UK-wide dispensing capacity by the end of 2028 to meet increasing demand.
“This is driven by more fleets switching to 100% renewable and sustainable biomethane to reduce carbon emissions, accelerated by the rapid adoption of the new and larger 6x2 gas-powered trucks opening a much larger market segment.”
The Magor station will have the capacity to refuel 12 trucks simultaneously, enabling the refuelling of more than 800 trucks per day and the dispensing of more than 30 million kilograms of Bio-CNG annually.
