- Shell agrees to pay $ 2 billion for Nature Energy Biogas.
- Organic waste is used as a source of energy by Nature Energy.
To increase its production of low-carbon fuels, British oil and gas giant Shell Plc has agreed to pay roughly $2 billion to acquire Danish biomethane and renewable energy producer Nature Energy Biogas A/S.
“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 Shell’s downstream director Huibert Vigevano.
Organic waste is used as a source of energy by Nature Energy. It owns and runs 14 large-scale biomethane plants and has roughly 30 more in various stages of construction in Europe and North America. It can produce one hundred eighty million cubic meters yearly or 6.5 million British thermal units.
A partnership made up of Sampension, Davidson Kempner, and Pioneer Point Partners has owned the Danish company since March 2018.
The British company’s wholly-owned subsidiary Shell Petroleum NV executes the deal. It is dependent on regulatory approvals and typical closing requirements. The parties anticipate finishing in 2023’s first quarter.
According to a Bloomberg report from August, in addition to Shell, several strategic and private equity investors were said to be considering bids for the Danish company, including Swedish buyout firm EQT AB, British rival BP Plc, investment juggernaut Blackrock, each of the US private equity firms Global Infrastructure Partners (GIP) and KKR & Co, and French utility Engie.