Burges Salmon advises CNG Fuels on transformative deal to create leading clean fuel infrastructure platform

We have advised CNG Fuels Ltd (CNG Fuels), a wholly owned subsidiary of ReFuels N.V (Refuels), a leading European supplier of renewable biomethane for the decarbonisation of heavy goods vehicles, on its transition into a fully integrated clean fuel company, creating a leading UK bio-CNG infrastructure platform.

The transaction was enabled by funds managed by the Foresight Group (Foresight) who will invest into CNG Fuels, transferring ownership of 15 stations to the business, with the capacity to serve 10,000 HGVs per day and an annual dispensing capacity of more than 310 million kg of biomethane to customers including Amazon, DHL and Marks & Spencer.

Led by partner Danny Lee, the multi-disciplinary Sustainable Transport team at Burges Salmon advised on the transaction, providing corporate, banking, tax, incentives, projects and employment expertise. Working with Danny to support on corporate advice were senior associate Niall Mackle, associate Claire Withers, solicitor Manahil Qadir and trainee Lui Henderson. Director Silvana Van der Velde and associate Emer O’Connell advised on tax and banking issues respectively.

Danny comments: “We are delighted to have supported CNG Fuels on its transformational transition to becoming a fully integrated clean fuel company, a move poised to make a substantial impact on the decarbonisation of heavy goods vehicles across the UK. It has been a pleasure working with CNG Fuels and its stakeholders Refuels and Foresight to facilitate a transaction that champions and advances sustainable modes of transportation.”

Philip Fjeld, CEO of ReFuels, adds: “By consolidating biomethane sourcing, station ownership and certificates, we are creating a leading integrated and fully equity-funded Bio-CNG infrastructure platform. This opens new sources of capital to finance a doubling of our refuelling capacity supported by rapidly increasing cash flow from operations. A larger station portfolio will enable additional truck fleets to decarbonise, further fuelling network and scale effects. The support from Burges Salmon, with its joined-up multi-disciplinary team and understanding of our sector, has been instrumental in facilitating this complex transaction.”

Burges Salmon’s Sustainable Transport team works across the entire transport sector including rail, highways, road transport, aviation and marine and ports. With strong expertise and insight, the firm covers all aspects of transport law; from corporate ventures, funding and operations to construction, development and disputes.