Shell spending $2 billion to buy the largest biomethane producer in Europe

November 29, 2022, by Ajsa Habibic

Shell Petroleum, a wholly-owned subsidiary of Shell, has entered into an agreement to acquire 100% shareholding of Nature Energy Biogas, a Denmark-based producer of renewable natural gas (RNG), for nearly $2 billion.

By purchasing the shares in Nature Energy, Shell said it will acquire the largest RNG producer in Europe. The acquisition will include its portfolio of cash-generative operating plants, associated feedstock supply and infrastructure, its pipeline of growth projects and its in-house expertise in the design, construction, and operation of innovative and differentiated RNG plant technology.

It will also further increase Shell’s ability to work with its established customer base across multiple sectors to accelerate its transition to net-zero emissions.

Furthermore, the acquisition will support Shell’s ambition to profitably grow its low-carbon fuel production.

The transaction is subject to regulatory approvals and is expected to close in Q1 2023.

“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”, said Huibert Vigeveno, Shell’s Downstream Director.

Nature Energy owns and operates 14 industrial-scale RNG, also known as biomethane, plants and an international development pipeline of about 30 plants across Europe and North America.

It is currently owned by a consortium of institutional investors, including Davidson Kempner Capital Management LP, Pioneer Point Partners and Sampension.