Foresight Environmental Infrastructure has announced a plan to combine its investments in renewable biomethane refuelling stations with the assets of ReFuels N.V., a leading European supplier of Bio-CNG (compressed natural gas, which is helping to decarbonise the transport industry).

The trust and one other Foresight-managed fund currently own a majority interest in a joint venture CNG Foresight that owns 15 public access Bio-CNG refuelling stations and associated mobile refuelling equipment. ReFuels currently owns CNG Fuels Ltd, a developer of Bio-CNG refuelling stations and the operator of the stations held within CNG Foresight, and 79.2% of a biomethane sourcing company, Renewable Transport Fuel Services Ltd.

CNG Foresight and Renewable Transport Fuel Services will become subsidiaries of CNG Fuels. The two Foresight funds will end up owning 60% of the ordinary share capital of CNG Fuels. The trust’s look-through interest will be 15%. The funds will also own £150.15m in 10% preferred return instruments issued by CNG Fuels, of which FGEN’s interest is £37.5m. ReFuels will hold the balance of the ordinary shares and £15.95m of the prefs. ReFuels will also have a return (ratchet) mechanism which may increase its share of value based on the exit valuation of the business.

The current network of stations in operation has the capacity to serve 10,000 HGVs per day and has an annual dispensing capacity of more than 310m kg of Bio-CNG to customers including Amazon, DHL and Marks & Spencer. The transaction provides a path to further growth via a rollout of a further nine public access Bio-CNG refuelling stations by the end of 2028.

The transaction is expected to be completed in April 2025.

FGEN : Foresight Environmental hails deal to expand its biofuels business