REG - Foresight Envr - Portfolio Update - CNG Foresight

Foresight Environmental InfrastructureAnnouncement

20/03/2025 07:15

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RNS Number : 4625B  Foresight Environmental Infrastruct  20 March 2025

FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LIMITED

 

("FGEN" or the "Company")

 

Portfolio Update - CNG Foresight

 

FGEN, a leading listed investment company with a diversified portfolio of
environmental infrastructure assets across the UK and mainland Europe, is
pleased to announce a transaction to combine its investments in renewable
biomethane ("Bio-CNG") refuelling stations with the assets of ReFuels N.V.
("ReFuels"), a leading European supplier of Bio-CNG for the decarbonisation of
heavy goods vehicles.

 

FGEN, together with another Foresight-managed fund (together, the "Foresight
Funds"), 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 ("RTFS").

 

The transaction will see CNG Foresight and RTFS become subsidiaries of CNG
Fuels. On completion of the transaction, the Foresight Funds will receive 60%
of the ordinary share capital of CNG Fuels, with FGEN's look-through interest
being 15%, and £150.15 million in 10% preferred return instruments issued by
CNG Fuels, of which FGEN's interest is £37.5m. ReFuels will receive the
remaining 40% of ordinary share capital and £15.95 million in the same
preferred return instruments. ReFuels will also have a return (ratchet)
mechanism which may increase its share of value based on the exit valuation of
the business.

 

The combination will create a fully integrated biomethane sourcing, station
ownership and Renewable Transport Fuel Certificate business well-placed to
build on its market leading position. 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 310 million 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.

 

Completion of the transaction is subject to approval by an extraordinary
general meeting ("EGM") of ReFuels and certain other customary closing
conditions. The notice of the EGM will be issued shortly. The transaction is
expected to be completed 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".

 

Philip Fjeld, CEO of ReFuels, said:

 

"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 effects and scale effects".

 

 

 

For further information and enquiries, please contact:

 

 Foresight Group                                      +44(0)20 3667 8100
 Chris Tanner                                         institutionalir@foresightgroup.eu (mailto:institutionalir@foresightgroup.eu)

Edward Mountney

Wilna de Villiers
 Winterflood Securities Limited                       +44(0)20 3100 0000
 Neil Langford

 SEC Newgate                                          +44 (0)20 3757 6882
 Elisabeth Cowell                                     fgen@secnewgate.co.uk (mailto:fgen@secnewgate.co.uk)

Alice Cho

Harry Handyside
 Apex Fund and Corporate Services (Guernsey) Limited  +44 (0)20 3530 3600
 Matt Lihou                                           fgen@apexgroup.com (mailto:fgen@apexgroup.com)

 

 

About FGEN

FGEN's investment policy is to invest in a diversified portfolio of
Environmental Infrastructure. Environmental Infrastructure is defined by the
Company as infrastructure assets, projects and asset-backed businesses that
utilise natural or waste resources or support more environmentally friendly
approaches to economic activity, support the transition to a low carbon
economy or which mitigate the effects of climate change. Such investments will
typically feature one or more of the following characteristics:

 

· long-term, predictable cash flows, which may be wholly or partially
inflation-linked cash flows;

· long-term contracts or stable and well-proven regulatory and legal
frameworks; or

· well-established technologies, and demonstrable operational performance.

 

FGEN's aim is to provide investors with a sustainable, progressive dividend
per share, paid quarterly and to preserve the capital value of the portfolio
over the long term on a real basis. The target dividend for the year to 31
March 2025 is 7.80 pence per share¹.

 

FGEN is an Article 9 fund under the EU Sustainable Finance Disclosure
Regulation and has a transparent and award winning approach to ESG.

 

Further details can be found on FGEN's website www.fgen.com and LinkedIn page.

 

LEI: 213800JWJN54TFBMBI68

 

(1) These are targets only and not profit forecasts.  There can be no
assurance that these targets will be met or that the Company will make any
distributions at all.

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