Renegren’s share price leapt by more than 7 percent on the JSE on Monday after the emerging natural gas and helium producer announced that it had completed the commissioning of its second compressed natural gas filling station in Johannesburg. File Photo: IOL

JOHANNESBURG – Renegren’s share price leapt by more than 7 percent on the JSE on Monday after the emerging natural gas and helium producer announced that it had completed the commissioning of its second compressed natural gas (CNG) filling station in Johannesburg. 

The group said the filling station would commence supply of CNG to Black Knight Logistics for a fleet of 15 trucks, starting later this month.

Chief executive Stefano Marani said this was a positive development for Renergen as the new CNG filling station would significantly increase the current pilot phase revenues and would realise its vision of supplying clean and sustainable energy into the logistics sector through the use of technology that was readily available.

“As a logistics company, delivering on sustainability targets is now easily attainable and companies can gain the dual benefit of reducing cost and emissions. Enormous credit must be given to Black Knight, which has taken the first step of purchasing the very first commercial fleet of natural gas-powered trucks in the South African market,” Marani said. 

Renergen's share price rose to R8.99 a share in intraday trade on the JSE and later closed at this price.

In February, Tetra4, a subsidiary of Renergen, announced that it had secured an agreement with Black Knight Group for the sale of liquefied natural gas (LNG). Black Knight and Babcock Transport Solutions, the sole importer in Southern Africa for DAF Trucks, have converted the vehicles to run on a combination of CNG and diesel simultaneously known as diesel dual fuel (DDF). 

The group said DDF vehicles had reduced running costs with substantially lower greenhouse gas emissions compared to vehicles running on diesel alone.

Jacques D’ymant, chief executive of Black Knight, said it was a great opportunity for Black Knight to be part of this gas project. 

“In developing our DDF fleet, with the intention of later migrating to LNG, we will be first in the market and a step closer to a greener future. Our customers will also gain a competitive advantage in the industry by benefiting from the cost savings achieved through the use of natural gas,” D’ymant said. 

Black Knight has established the CNG filling station as part of its transition to more sustainable fuels. It said the filling station would be used to service the trucks Black Knight was converting and the filling station would operate until the Virginia Gas Project’s LNG’s facility came online in 2021. 

Earlier this year, Tetra4 received a $40 million (R590m) loan facility to develop its Virginia gas field project from Overseas Private Investment Corporation, the US government's development finance institution.

BUSINESS REPORT