An Essex-based fuels, oils and lubricants provider is investing £40m in its fleet and boosting its team as part of its ambition to become one of the UK’s leading alternative fuel brokers.
New Era Energy, which was was established in 1919 as a red diesel supplier for off-road operations, has diversified over the past four years to become a major provider of hydrotreated vegetable oil (HVO), a substitute for diesel that delivers a 90% reduction in tailpipe carbon emissions..
The business said it decided to pivot after spotting a gap in the market for more sustainable products, which also aligned with its own ESG principles.
The business, headquartered in Harlow, is now investing to expand its fleet of 70 tankers and 10 fuel depots, with plans to add new trucks, another depot in the near future and explore other opportunities that would support their customers to transition to greener fuel solutions.
To help drive this growth, the business, which currently employs 169 people, is also looking to take on more than 30 extra staff by 2026 as part of its three-year growth plan.
This investment is being supported by a £40m asset-based lending (ABL) funding solution from Lloyds Bank.
The new funding injection follows a period of continuous growth for the business. It has tripled its revenue in the past three years and is currently on track to sell 250m litres of fuel this year - more than five times what it sold in 2020.
Sixty million litres of this is set to come from HVO sales, helping it cement its place as the largest HVO supplier in the country.
Alongside this, the business also ensures that all of its own vehicles are powered through HVO, with 900,000 litres of its product used on its own trucks.
In May this year, the business also launched its own fuel tank restoration service. By bringing existing tanks back up to the required quality, this saves its customers money as well avoiding the carbon footprint that would be left by constructing entirely new tanks.
The firm, which has traditionally supplied customers in the construction, demolition and plant hire sectors, is also looking to expand into different industries, such as haulage and distribution.
These plans have also been supported by a recent investment from Hanover Investors and Management, who will also partner with New Era to help it grow its operations.
James Hunt, CEO at New Era Energy said: “Our goal is to help all our customers transition to more sustainable sources for their fuel needs. But in doing this, it’s also important that we practice what we preach, which is why we’re committed to taking steps to limit our own carbon footprint.
“At the same time, it’s also vital that we grow our business. This latest investment will open doors for us to expand our team and move into new industries whilst continuing to provide the high-quality products that we’re known for.”
Matthew Durrant, relationship manager at Lloyds Bank, said: “As the country looks to make the transition to a lower carbon economy, it’s businesses like New Era Energy, who are making real efforts to help others operate more sustainably, that can make all the difference.
“I’m thrilled that we were able to support this business. Its combination of technical expertise and ambition means this is an exciting time for it, and I’m looking forward to seeing it continue to thrive as James and his team pursue their plans to grow.”
