Bio-CNG supplier ReFuels expects robust growth in 2024: interview
ReFuels, a biomethane or bio-CNG supplier headquartered in the Netherlands, is poised for significant growth in 2024, according to CEO Philip Fjeld.
The company, operating 13 dispensing stations in the UK, anticipates dispensing 50% more bio-CNG volumes this year. In 2023, ReFuels dispensed 43,269 tonnes of bio-CNG, marking a 65% increase from the previous year.
“We expect to achieve a growth rate of somewhere in the range of 50% or greater in 2024,” he said.
The company, established in 2023 through the collaboration of CNG Fuels and biomethane supplier RTFS, opened its 13th refuelling station in Bangor, North Wales, in November 2023.
It dispensed 12,582 tonnes of bio-CNG across its 13 stations in the UK during the October-December quarter. An average of 1,584 vehicles refuelled at CNG Fuels' stations during the October-December quarter, representing a substantial growth from 1,092 vehicles in the corresponding period in the previous year.
Fjeld said that the increase in bio-CNG volumes would have been even higher if there were more public access stations.
“Truck fleet operators in the UK need to decarbonise their fleet operations and biomethane is the most cost-effective way of achieving this. Whilst 65% growth in 2023 is a good figure, we would likely have seen even higher growth if we had more public access stations. We are working on rolling out even more stations but building infrastructure takes time,” he said.
More stations coming up this year
In terms of future expansion, Fjeld outlined the company's plans to open two more stations in 2024 and commence construction on at least five additional bio-CNG stations. "Total investment for these seven stations would be in the range of £40-50mn,” he said.
Bio-CNG demand in the UK set to expand further
Regulatory support from the Renewable Transport Fuel Obligation (RTFO) scheme in the UK has been a factor in fostering the growth of the bio-CNG sector. Fjeld anticipates continued expansion, attributing it to the rising demand for green logistics.
“We expect bio-CNG demand to continue its rapid growth rate. A typical annualised growth rate of 50% or more should be achievable. The demand for green logistics will be driving this growth,” he said.
Furthermore, ReFuels is eyeing opportunities beyond the UK, with plans to extend its operations into other European markets.
“We have been offered opportunities to expand into other European markets, and this is something that we expect to act on in 2025 or 2026,” Fjeld said.