Biomethane Refuelling
The provision of renewable gas fuel for vehicles, primarily heavy goods vehicles (HGVs), as a lower‑emissions alternative to diesel.
The UK is facing an urgent task to decarbonise the transport sector, particularly heavy goods vehicles (HGVs), in order to meet the government’s climate change commitments
Natural gas, especially biomethane, is currently considered the only technically proven and commercially viable option to achieve low emissions for HGVs, thanks to government regulatory support through the fuel duty differential and Renewable Transport Fuel Obligation ("RTFO") scheme.
In addition to a favourable fuel duty rate, natural gas as a transport fuel is also materially lower than that of diesel currently. These provide strong financial incentives to incentivise fleet operators to replace diesel by gas-powered trucks, thereby driving increasing growth of the UK gas HGV market over the past few years.
What are biomethane refuelling stations?
Biomethane refuelling stations are public access stations for refuelling heavy goods vehicles (“HGVs”) with compressed natural gas from renewable sources. The primary aim is to enable HGVs to transition from using diesel to more efficient and cleaner biomethane – an environmentally beneficial transition.
As haulage is an essential service, the stations have proven to be a robust investment and have remained fully operational with minimal impact from COVID-19. Averon Park and a listed Foresight fund have partnered with CNG Fuels to acquire and grow a network of strategic biomethane HGV refuelling stations across the UK. CNG Fuels is the UK’s dominant supplier of renewable biomethane compressed natural gas for the UK’s truck sector.
Case Study
CNG Fuels
The Averon Group owns and supports a growing network of biomethane refuelling stations across the UK in partnership with CNG Fuels, a leading supplier of renewable fuel for heavy goods vehicles ("HGVs").
The network plays an important role in the decarbonisation of road freight by replacing diesel with 100% renewable biomethane (Bio-CNG), supporting one of the most significant opportunities to reduce emissions within the UK's transport sector.
CNG Fuels is a recognised market leader, supplying more than half of the UK's biomethane demand for heavy goods vehicles through an expanding national network of refuelling stations and long-standing relationships with major logistics, distribution and retail operators. Biomethane is produced from renewable waste sources, including food and agricultural by-products, providing fleet operators with a lower-carbon and cost-effective alternative to conventional diesel.
The business has developed an integrated clean fuel platform encompassing biomethane sourcing, refuelling infrastructure and operational management. This integrated approach enables the business to expand alongside increasing demand for low-carbon transport fuels while supporting the UK's transition to a more sustainable freight network.
Through active ownership, strategic oversight and continued business development, the Averon Group is supporting the long-term growth of a business that combines essential transport infrastructure with significant environmental benefits.
