Essex-based fuels, oils and lubricants provider New Era Energy will invest £40m to propel its ambitions to become one of the UK’s leading sustainable fuel brokers.
The investment, an asset-based lending (ABL) solution from Lloyds Bank, will expand the company’s fleet of 70 tankers and ten fuel depots as well as take on 30 extra staff over the next few years.
“Our goal is to help all our customers transition to more sustainable sources for their fuel needs. But in doing this, it’s also important that we practice what we preach, which is why we’re committed to taking steps to limit our own carbon footprint,” said New Era Energy chief executive James Hunt.
“At the same time, it’s also vital that we grow our business. This latest investment will open doors for us to expand our team and move into new industries whilst continuing to provide the high-quality products that we’re known for.”
New Era Energy is one of the UK’s leading providers of Hydrotreated Vegetable Oil (HVO), a substitute for diesel made from 100% waste oil that delivers a 90% reduction in tailpipe carbon emissions for users. The company was originally established in 1919 as a supplier of red diesel for off-road operations.
The business, headquartered in Harlow, decided to pivot after spotting a gap in the market for more sustainable products, which also aligned with its own ESG principles. It has plans to add new trucks, another depot and will explore other opportunities that would support their customers to transition to greener fuel solutions.
Circular approach
The new funding injection follows a period of continuous growth for the business. It has tripled its revenue in the past three years and is currently on track to sell 250m litres of fuel this year – more than five times what it sold in 2020.
In May this year, the business also launched its own fuel tank restoration service. By bringing existing tanks back up to the required quality, this saves its customers money as well avoiding the carbon footprint that would be left by constructing entirely new tanks.
Lloyds Bank relationship manager Matthew Durrant said: “As the country looks to make the transition to a lower carbon economy, it’s businesses like New Era Energy, who are making real efforts to help others operate more sustainably, that can make all the difference.”
Homegrown efforts to support the energy transition contrast sharply to recent moves by the majors – earlier this year, ExxonMobil said it was on track with its UK refinery expansion just as others were shutting capacity.
The new production facility at the Fawley refinery on the south coast of England will initially be geared to production of diesel, helping to reduce imports of the fuel into the UK.
It could be reconfigured at a later point to make conventional jet fuel or sustainable aviation fuel from vegetable oils, and will also allow for more petrochemicals output.
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