Shell to buy Danish biogas maker Nature Energy for USD 2bn

British oil and gas giant Shell Plc (LON:SHEL) has inked a deal to acquire Danish biomethane and renewable energy producer Nature Energy Biogas A/S for nearly USD 2 billion (EUR 1.92bn) in a push to expand its low carbon fuels production.

“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,” said Shell's downstream director Huibert Vigeveno.

Nature Energy produces energy from organic waste. It owns and operates 14 industrial-scale biomethane plants and an international development pipeline of about 30 plants across Europe and North America. Its current production capacity stands at about 180 million cubic metres, or about 6.5 million British thermal units per year (MMBtu/yr).

Since March 2018, the Danish firm has been owned by a consortium consisting of Davidson Kempner, Pioneer Point Partners and Sampension.

The transaction is being carried out through the British firm’s wholly-owned subsidiary Shell Petroleum NV. It hinges on regulatory approvals and standard closing conditions. The parties anticipate completion in the first quarter of 2023.

Media speculation about Nature Energy exploring strategic options, including a sale, started earlier in 2022.

In addition to Shell, various strategic and private equity investors were said to be considering bids for the Danish firm, including Swedish buyout firm EQT AB, British rival BP Plc, investment giant Blackrock, each of US private equity firms Global Infrastructure Partners (GIP) and KKR & Co, and French utility Engie, according to a Bloomberg report from August.

(USD 1 = EUR 0.962)

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