The Renewing Power of Progress in Renewable Power: Shell Acquires Nature Energy in $2B RNG Deal

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November 30, 2022

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by Jim Lane (Biofuels Digest) News arrives from Europe that Shell plc has agreed to acquire 100% of Nature Energy for nearly USD $2 billion (€ 1.9 billion) from Davidson Kempner Capital Management LP, Pioneer Point Partners and Sampension. The acquisition will be absorbed within Shell’s current capital range, which remains unchanged.

The transaction is subject to regulatory approvals and is expected to close in Q1 2023. Nature Energy is cash generative, and the acquisition is expected to be both accretive to Shell’s earnings from completion and deliver double digit returns.

The Nature Energy backstory

Based in 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 mln MMBtu/yr (3,000 boe/d1).

The company also has a pipeline of around 30 new plant projects in Europe and North America. More than a third of these projects are in medium to late development stage in Denmark, the Netherlands and France and could deliver up to 9.2 mln MMBtu/yr (4,400 boe/d) by 2030, subject to future final investment decisions and relevant regulatory approvals.

Nature Energy and its 420 employees located in Europe and North America will operate as a wholly owned subsidiary of Shell, initially under its existing brand.

The Shell RNG backstory

Shell has an existing RNG production business in North America, with one operational site and four under construction. Shell is a trader of RNG and has a wide range of RNG and bioLNG customers, including large corporate, road haulers and marine customers. READ MORE

Shell to acquire renewable natural gas producer Nature Energy (Shell)

Shell to acquire European RNG producer for $2 billion (Biomass Magazine/Shell)

Shell buys Danish biogas producer Nature Energy for $2bn in green push — The deal will make Shell the largest renewable natural gas producer in Europe (Bloomberg)

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