CNG Fuels is set to open a biomethane refuelling station for HGVs to support low-carbon deliveries in Wales and the South West.
The Avonmouth station near the M4/M5 junction will be capable of refuelling 80 HGVs an hour from 14 high speed dispensers and joins six existing refuelling stations already operational across the UK.
Philip Fjeld, CEO of CNG Fuels, said: “Avonmouth is a key site for CNG Fuels’ expansion across the UK.
“The site will allow companies to use low-carbon fuel for regular routes between London, the Midlands, South Wales, Cornwall and Devon.
“Such a strategically crucial location requires our biggest refuelling station yet. This station will enable even more fleet operators and hauliers to reduce their carbon emissions and save money.”
CNG Fuels expects to open a further 14 stations by the end of 2022 in response to growing demand from household brands.
Major brands that will use the station in Avonmouth to reduce transport emissions include Warburtons, Farm Foods, Hermes and regional water utility company, Wessex Water.
All fuel supplied by CNG Fuels is renewable and sustainable biomethane, approved under the Department for Transport’s (DfT) Renewable Transport Fuel Obligation (RTFO) scheme.
As part of the DfT's ‘Targeting net zero - Next steps for the Renewable Transport Fuels Obligation’, the Government is proposing to increase the RTFO main obligation to supply renewable fuel by 2.5% over the next 10 years.
The Gas Vehicle Network (GVN) expressed it is ‘extremely disappointed’ with plans to amend the RTFO and said the UK needs a “more ambitious” RTFO to support the opportunity that gas as a transport fuel offers.
The DfT opened its consultation on plans to amend the RTFO in April.
Last year, CNG Fuels attracted £80 million of investment from Foresight Group to help fund the creation of a UK network of 14 biomethane fuel stations for HGV customers.
Steven Gray, Warburtons national transport manager, said: “Switching our HGV fleet from diesel to biomethane will be critical for reaching our transport decarbonisation goals.
“CNG Fuels’ new low-carbon refuelling station in Avonmouth is perfectly situated for our distribution centres in the region and will extend the range of low-carbon deliveries we can make across the country.”
CNG Fuels said demand for the fuel from fleet operators is already growing at around 100% per annum, with CNG Fuels forecasting this will continue to accelerate, and that by 2025 around 10% of the UK’s high-mileage HGV fleet will be running on Bio-CNG.
CNG Fuels said from next year, it will dispense fully carbon neutral fuel by sourcing biomethane from manure. The gas is currently sourced from waste feedstocks, such as food waste.
Construction has begun on the Avonmouth station and is set to open by the end of the year.