Mass market adoption of electric vehicles (EV) hinges on the roll-out of accessible and affordable charging, according to the International Energy Authority’s 2024 outlook. Charging availability and speed will be crucial to spurring the energy transition, and Motor Fuel Group, the UK’s largest independent forecourt operator with around 1,200 sites, is driving the change.
Building a leading EV charging point operator
At the start of 2024, MFG announced the acquisition of 337 petrol forecourts – including fuel, convenience retail kiosk and ancillary services – from UK supermarket chain Morrisons, with a deal value of GBP2.5 billion.
The group already has over 800 ultra-rapid EV chargers across more than 200 sites and plans to leverage its forecourt network to install a further 800 ultra-rapid EV chargers over the next five years. With infrastructure often seen as a stumbling block in EV adoption, MFG will address this challenge with its 150 kW charging stations that deliver up to 100 miles in range in just 10 minutes.
Innovative approach to charging infrastructure
MFG has taken an innovative approach to developing its charging network, drawing on its set-up of petrol forecourts to roll out EV infrastructure right across the UK.
William Bannister, CEO of Motor Fuel Group, describes how the group’s network of 1,200 forecourts delivers charging to the heart of local communities: “That network offers a very viable way of getting the new power sources to where people are genuinely travelling. We are one of the largest ultra-rapid charge point operators in the UK. Retail and other businesses alongside that create hubs for local communities.”
Working with MFG and CD&R, the private equity sponsor invested in MFG, since 2015, BNP Paribas supported the company in this transaction as financial advisor.
Greg Lai, partner at private equity firm CD&R highlights the importance of a reliable banking partner: “This has been all about BNP Paribas understanding the changes that William and the team were making in the business in terms of the focus of investment, the capital intensity and therefore the liquidity requirements of the investment. And trusting the team in developing the right vision but more importantly executing on the plan.”
Consistency, insights and trusted advice
Infrastructure financing is one of the main components of BNP Paribas’ sustainable mobility focus, and this partnership offers a further example of the Bank’s strategy, delivering energy to the end customer in a differentiated approach.
Bertrand Valet, Global Head of Financial Sponsors Coverage at BNP Paribas explains: “The way we are trying to differentiate as BNP Paribas is with three things. One is consistency: we have supported MFG in every step of its expansion over the last ten years. Two, it’s actually about insights, we have dedicated teams in advisory and equity research focused on low-carbon transition. And the last thing is trusted advice.”
As the market evolves, MFG is pacing investment with the way the market is changing, supported by BNP Paribas. Bertrand Valet continues: “BNP Paribas has been supporting MFG on this journey. And the company has consistently delivered on its plans. The long-term relationship is actually quite powerful because that’s the way you build trust over time.”
William Bannister adds: “Strategically this is a very big move (…) by the same token I believe we should be big/small, which means we understand our customer, our teams are very tight, we are developing what the customer wants.”
As the company supports the transition, he concludes: “We are encouraging that change by providing the facilities that will give people confidence and that’s the exciting bit.”
