Shell subsidiary Shell Petroleum has agreed to acquire Denmark-based renewable natural gas (RNG) producer Nature Energy Biogas for approximately $2bn.
Nature Energy will be acquired from a consortium of institutional investors comprising Pioneer Point Partners, Davidson Kempner Capital Management, and Sampension, together called NGF Partnership.
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The Danish firm is engaged in producing RNG from agricultural, household, and industrial wastes.
The firm currently owns 14 industrial-scale biomethane plants, with related infrastructure and feedstock arrangements.
In addition, Nature Energy also has a pipeline of nearly 30 plants to be launched in Europe and North America.
The firm currently has a production capacity of approximately 3,000 barrels of oil equivalent per day (boepd).
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By GlobalDataShell expects the acquisition to boost its ability to work with its customer base across various sectors to advance its shift to net-zero emissions.
Shell downstream director Huibert Vigeveno said: “Shell’s competitiveness in low-carbon fuels derives from capabilities across the value chain, combining a world-class trading and supply organisation, with access to differentiated technology and production assets.
“Acquiring Nature Energy will add a European production platform and growth pipeline to Shell’s existing RNG projects in the United States.
“We will use this acquisition to build an integrated RNG value chain at a global scale, at a time when energy transition policies and customer preferences are signalling strong growth in demand in the years ahead.”
Subject to regulatory approvals, the deal is anticipated to close in the first quarter of 2023.
Nature Energy Biogas board chair Jesper Lok said: “Under the stewardship of the NGF Partnership, Nature Energy has grown into a leading producer of biomethane from organic waste and has pioneered a standardised large-scale commercial production process in Denmark that creates higher on-farm crop yields.”
