ReFuels and funds managed by Foresight Group today announces a transaction to create a fully integrated clean fuel company.
CNG Fuels will encompass the biomethane sourcing and Renewable Transport Fuel Certificate (RTFC) generation, with direct ownership in 16 Bio-CNG stations, large site pipeline and market leading station operating capabilities.
The combined entity has a clear path to doubling the refuelling capacity to 20,000 HGVs per day by end-2028, which includes at least nine new grid-connected stations the next three years complemented by a fleet of additional mobile refuelling stations.
“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”, said Philip Fjeld, CEO of ReFuels.
“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”, Fjeld continued.
“CNG Fuels has an unmatched track record in developing and operating Bio-CNG infrastructure across the UK. Their expertise, scale and first-mover advantage put 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”, said Chris Tanner, a Partner at Foresight.
ReFuels will own 40% of the ordinary shares of CNG Fuels and have a return (ratchet) mechanism which may increase the share of distributions up to 55% based on the valuation of the company in certain future value realisation scenarios.
