FGEN has announced a strategic merger of its renewable biomethane (Bio-CNG) refuelling station investments with ReFuels N.V., a leading European Bio-CNG supplier.

Currently, FGEN and another Foresight-managed fund own a majority stake in CNG Foresight, which operates 15 public Bio-CNG refuelling stations. ReFuels owns CNG Fuels Ltd, which develops and operates these stations, and holds a 79.2% stake in Renewable Transport Fuel Services Ltd (RTFS), a biomethane sourcing company.

Under the agreement, CNG Foresight and RTFS will merge into CNG Fuels. The Foresight Funds will acquire 60% of CNG Fuels’ ordinary shares, including FGEN’s 15% stake, along with £150.15 million in 10% preferred return instruments (£37.5 million allocated to FGEN). ReFuels will hold the remaining 40% equity and £15.95 million in preferred return instruments, with a potential increase in its share based on future valuations.

The merger creates a fully integrated Bio-CNG business, reinforcing its position as a market leader. The combined network currently serves 10,000 HGVs daily and can dispense over 310 million kg of Bio-CNG annually to major clients like Amazon, DHL, and Marks & Spencer. Future expansion includes nine additional public Bio-CNG stations by 2028.

The transaction is expected to complete in April 2025.

Chris Tanner, Foresight investment manager for FGEN, said:

“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”.

News in full

We interviewed the investment team behind the trust, who outlined the financial and operational highlights from the most recent financial results, but also reaffirmed their confidence in FGEN’s investment strategy.