Oxford Infrastructure Limited Case Study

SERVICE: INGENIOUS INFRASTRUCTURE EIS 2015/16, 2016/17 & 2017/18

Investment strategy

To achieve attractive, risk–adjusted returns for Investors through investment in companies operating in the infrastructure sector in the UK.

Background

Oxford Infrastructure Limited partnered with the UK’s leading compressed natural gas (CNG) refuelling technology provider, CNG Fuels, to develop, construct and operate a CNG refuelling station for heavy goods vehicles (HGVs) in the UK. The UK government and transport businesses have long recognised the need to decarbonise our transport if the UK is to reach its carbon reduction goals. Whilst electrification is an obvious alternative for domestic vehicles, the large batteries required for HGVs make electrification currently unviable and so alternative low carbon solutions need to be adopted, such as CNG.

Opportunity

Oxford Infrastructure Limited deployed funds invested into the company to finance the development and construction of a CNG refuelling station just outside of Erdington, UK. The project was managed by CNG Fuels, who subsequently acquired the operational site. The site is located next to key transport links and distribution hubs, making it easily accessible for retail and haulage companies who are in the process of converting their fleets to CNG over the coming years.

Company differentiators

Oxford Infrastructure Limited and CNG Fuels, are early adopters of CNG as a transport fuel for HGVs and as such have been able to acquire the rights to key refuelling locations i.e. where motorways, gas connections/network capacity and logistics centres all overlap. As a result, the companies benefit from a strong first mover advantage and early entry into CNG refuelling.