bp has acquired a 28.57% stake in Gasrec, the UK's largest dual provider of bio-Liquified Natural Gas(LNG) and bio-Compressed Natural Gas (CNG) to road transport. The company builds, owns and operates biomethanerefueling stations, providing renewable solutions to the heavy goods vehicle ("HGV") industry.
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 gasproduction and distribution, adding to its market leading position in the US.
Carol Howle, EVPTrading and Shipping at bp, said: "Bio-LNG and bio-CNG play a crucial role in the energy transitionand decarbonization of the heavy-freight industry and is another example of how we're helping decarbonizehard-to-abate sectors. 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 some of the UK's biggest retailers, parcel delivery companies and hauliers -- Asda, Ocado, Gregory Distribution and Reed Boardall. By offering lower carbonsolutions for HGVs, Gasrec lowers the carbon emissionsassociated with the road transport supply chain and the customers who transport goods.
Gasrec's network of ten biomethane refueling stations across the UK is capable of refueling approximately 1,250 vehicles per day and includes one of Europe's largest gas refueling stations, at Daventry International Rail Freight Terminal (DIRFT). With a strong market position, refueling around 40% of the UK's gas-powered HGVs, Gasrec is seeking to expand its network of refueling stations at logistics parks.
In the UK, road transport is reported as being 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.1 Renewable gas is an important part of the energy transition for the HGV sector, providing a commercially viable option for fleet owners to reduce their carbon footprintby up to 85% in comparison to diesel.2 From producing and supplying biomethane through to building and operating the fueling stations, bp and Gasrec are well positioned to meet the increasing demand for reliable, renewable gas solutions.
Rob Wood, CEO of Gasrec, said: "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 eighteen years' experience and leading position in the HGV gas supply industry, we are excited to be working with bp to help expand our reach."
1 UK Government, Department of Transport, Transport and Environment Statistics 2021 Annual report
2 Low Carbon Vehicle Partnership, Innovate UK and Office for Low Emission Vehicles, Low Emission Freight & Logistics Trial (LEFT), Key Findings, November 2020