- Mergers & Acquisitions
Shell acquires Nature Energy, largest RNG producer in Europe
Shell Petroleum NV, a wholly owned subsidiary of Shell plc, is acquiring Nature Energy Biogas A/S for nearly USD2 billion. Based in Denmark, Nature Energy is a producer of renewable natural gas (RNG) from agricultural, industrial, and household wastes, based in Odense, Denmark.
Nature Energy was founded in 1979 as a natural gas distributor. The company established its first biogas plant in Denmark in 2015 and now has 14 operating plants with associated infrastructure, feedstock arrangements, and current 2022 production of around 6.5 million MMBtu per year.
By purchasing the shares in Nature Energy from Davidson Kempner Capital Management LP, Pioneer Point Partners and Sampension, Shell will acquire the largest RNG producer in Europe. The purchase includes Nature Energy’s 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.
This acquisition will further increase Shell’s ability to work with its established customer base across multiple sectors to accelerate its transition to net-zero emissions. It will also support Shell’s ambition to profitably grow its low-carbon fuels production and customer offering.
“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,” said Huibert Vigeveno, Shell’s Downstream director. “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 global scale, at a time when energy transition policies and customer preferences are signalling strong growth in demand in the years ahead.”
The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2023.
The acquisition is expected to be both accretive to Shell’s earnings from completion and deliver double-digit returns.