CNG Foresight case study

The CNG Foresight investment comprises a portfolio of biomethane refuelling stations for Compressed Natural Gas vehicles in the UK.

The transport sector is the largest source of carbon dioxide emissions in the UK, accounting for 34 per cent in 2019[1]. Within the transport sector HGVs produce 17% of road transport emissions and 4.5% of total UK greenhouse gases (“GHGs”).

Therefore, HGVs fuelled by biomethane (as generated by anaerobic digestion plants) are the only commercially available, at-scale solution to substantially reduce these emissions. HGVs fuelled with 100% biomethane offer a saving in GHG emissions of over 80% on a “well-to-wheel” basis when compared to a similar diesel vehicle. They also offer further environmental benefits such as lower noise and lower particulate emissions[2].

The take-up of CNG HGVs fuelled by biomethane, therefore offers fleet operators the opportunity to lower their emissions substantially. CNG HGVs are also cheaper to run over a typical 5-7 year duty cycle, due in part to a favourable fuel duty position compared to comparable diesel vehicles. The government has committed to maintaining a clear advantage for gas powered vehicles until 2032, as part of measures supporting the UK’s target of net zero emissions by 2050.     

Revenues are earned from sales of biomethane fuel to customers under contract, which include several of the largest fleet operators in the UK. The commodity price of gas is passed through to the customer, meaning that FGEN has no exposure to underlying merchant gas prices.

[1] BEIS “2019 UK greenhouse gas emissions, provisional figures” (26 March 2020)

[2] Source: CNG Fuels, Element Energy

 

Project Specifics

Acquisition date
December 2020

Total Investment
Up to £20 million

Investment description
A portfolio of biomethane refuelling stations for Compressed Natural Gas vehicles in the UK

CO2 Reductions

Compared to diesel*

*This comparator uses the EU data generated by EUCAR/Concawe/JRC in their report: Well-to-wheels Analysis of Future Automotive Fuels and Powertrains in the European Context – WTT APPENDIX 2 – Description and detailed energy and GHG balance of individual pathways – version 3c, July 2011