Renewable biomethane supplier ReFuels is partnering with Foresight Group to create an integrated clean fuel company under its subsidiary CNG Fuels, which aims to double its bio-CNG refueling capacity to 20,000 HGVs a day by 2028.
The deal, which consolidates biomethane sourcing, station ownership, and Renewable Transport Fuel Certificate generation, will see Foresight’s 15 CNG stations and mobile refueling equipment merged with ReFuels’ stake in Renewable Transport Fuel Services, creating a 16-station network.
The partnership also plans to build at least nine grid-connected stations in the next three years, complemented by a fleet of additional mobile refuelling stations.
Under the agreement, Foresight will hold a 60% stake, with ReFuels retaining 40% ownership.
Philip Fjeld, ReFuels chief executive (pictured), said: “By consolidating biomethane sourcing, station ownership and certificates, we are creating a leading integrated and fully equity-funded Bio-CNG infrastructure platform.
“This opens new sources of capital to finance a doubling of our refuelling capacity supported by rapidly increasing cash flow from operations.
“A larger station portfolio will enable additional truck fleets to decarbonise, further fuelling network and scale effects.”
He added: “With the new structure, ReFuels has a clear path for growth and material value creation through a unique combination of self-funded, infrastructure-backed growth, and tangible decarbonisation of heavy-duty transport.”
Foresight partner Chris Tanner said: “CNG Fuels has an unmatched track record in developing and operating Bio-CNG infrastructure across the UK.
“Their expertise, scale and first-mover advantage puts them years ahead of the competition, uniquely positioned to deliver significant value creation as demand for low-carbon transport accelerates.
“We look forward to extending our long-standing collaboration with ReFuels through a simplified and efficient platform with a clear growth strategy.”
The current network of 15 stations in operation has the capacity to serve 10,000 HGVs per day and has an annual dispensing capacity of more than 310 million kg of biomethane to a customer base that includes Amazon, DHL and Marks & Spencer.
In 2024, 55 million kg were dispensed, reducing emissions by more than 195,000 tonnes. One more station is under construction with planned opening in 2025.
The partnership estimates that by the end of 2028, the total network could serve 20,000 HGVs a day and dispensing 780 million kg of Bio-CNG per year.
Fjeld said: “CNG Fuels has steadily solidified its market leadership, and our first-mover advantage provides a multi-year lead.
“Now we can deliver a steady station roll-out pace synchronised with Scania’s and Iveco’s production ramp-up of CNG versions of the larger and most popular articulated 6x2 truck format.
“Our extended station network and this new class of environmentally friendly and cost-efficient HGVs, Bio-CNG uptake is set to accelerate.”
Completion of the transaction is subject to approval by an extraordinary general meeting in ReFuels to be held on 7 April 2025.
