December 5, 2020. Foresight Group is providing an initial £80 million in funding to CNG Fuels in a partnership to build a nationwide network of refueling stations that will allow heavy goods vehicles (HGV) to run on carbon neutral fuel, the companies announced.
CNG Fuels opened its fifth filling station near Birmingham last week, and the funding will see it develop at least 14 further public access stations on major routes over the next two years, quadrupling the company’s capacity and enabling it to refuel 8,000 vehicles a day. They will make carbon neutral fuel available from Glasgow to Bristol, meeting growing demand from major brands eager to switch their high-mileage, heavily emitting HGVs away from diesel.
The company is the UK’s leading supplier of Bio-CNG (compressed natural gas), the lowest carbon, and most cost-effective alternative to diesel for HGVs. The fuel is 35%-40% cheaper than diesel and cuts vehicle greenhouse gas emissions by up to 85%. It will gradually become fully carbon neutral from 2021 as the biomethane is increasingly sourced from manure, a heavy emitter of greenhouse gas.
Foresight Inheritance Tax Fund and JLEN Environmental Assets Group Limited, Foresight Group’s listed environmental infrastructure fund, have provided the initial £80 million funding line for a joint venture with CNG Fuels. It follows the launch of the UK Government’s ten point plan for a green industrial revolution, which included the proposal of a consultation on the phase-out of new diesel HGVs to put the UK in the vanguard of zero emission freight.