The transport sector is the largest source of carbon dioxide emissions in the UK, accounting for approximately 29% of total emissions. Heavy goods vehicles (HGVs) produce 17% of road transport emissions, despite representing only around 1% of the UK road transport fleet.
HGVs fuelled by biomethane generated by anaerobic digestion plants are one of the only commercially available, scalable and cost-competitive solutions capable of materially reducing emissions from long-haul road transport today.
The take-up of Compressed Natural Gas (CNG) offers fleet operators the opportunity to significantly lower their emissions, whilst also providing a cheaper whole-life alternative to comparable diesel vehicles.
About the portfolio
A UK-wide network of reliable, convenient refuelling stations for heavy duty fleets.
Investment attractions
- Revenues earned from sale of biomethane under contract
- No exposure to underlying merchant gas prices
- Government commitment to gas-powered vehicles
- Attractive combination of predictable and reliable income and potential for capital growth
First investment
2020
Potential risks
- Ramp-up risk with lower than forecast vehicle numbers
- Competition from other sources of renewable fuels
Case study spotlight: CNG Fuels
The CNG Fuels investment comprises a portfolio of 16 biomethane refuelling stations providing compressed natural gas (“CNG”) to heavy goods vehicle (“HGV”) fleet operators in the UK.
