bp acquires stake in biomethane provider Gasrec

bp has acquired a 28.57% stake in Gasrec, the UK’s largest dual provider of bio-LNG and bio-CNG to road transport.

Gasrec builds, owns and operates biomethane refuelling stations, providing renewable solutions to the heavy goods vehicle industry. The company opened a CNG refuelling station for online supermarket Ocado in September.

bp will supply Gasrec with renewable biomethane produced mainly from organic wastes, such as food and dairy manure. The investment will expand bp’s UK footprint in renewable gas production and distribution, adding to its market-leading position in the US.

“Bio-LNG and bio-CNG play a crucial role in the energy transition and decarbonisation of the heavy-freight industry and is another example of how we’re helping decarbonise hard-to-abate sectors,” said Carol Howle, EVP trading and shipping at bp.

“We’re excited to work with an industry leader like Gasrec to increase the supply of biomethane for HGV customers. This investment further expands bp’s global renewable gas portfolio, an area which we believe will have an increasingly important role on the path to net zero.”

Founded in 2003, Gasrec was the UK’s first supplier of biomethane to the road transport sector. Its customers include major retailers, parcel delivery companies and hauliers, such as Asda, Gregory Distribution, and Reed Boardall.

Gasrec’s network of 10 biomethane refuelling stations across the UK is capable of refuelling around 1,250 vehicles per day and includes one of Europe’s largest gas refuelling stations at Daventry International Rail Freight Terminal. The company is seeking to expand its network.

Rob Wood, CEO of Gasrec, commented: “This agreement is an important milestone for our company as we look to continue increasing our impact on the UK’s heavy goods vehicle industry.

“Building on our 18 years’ experience and leading position in the HGV gas supply industry, we are excited to be working with bp to help expand our reach.”

In the UK, road transport is said to have been responsible for 27% of total greenhouse gas emissions in 2019. HGVs represent just 5% of vehicle miles travelled, yet their associated emissions are disproportionately greater, producing around 16% of road transport emissions.

Renewable gas is a crucial part of the HGV sector’s energy transition, providing a commercially viable option for fleet owners to reduce their carbon footprint by up to 85% compared to diesel.

205 queries in 0.884 seconds.