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Shell to acquire renewable natural gas producer

Shell

Based in Denmark, Nature Energy is a producer of Renewable Energy, focus on Renewable Natural Gas (RNG) from agricultural, industrial, and household wastes.

Natural Gas producer

Firstly, by purchasing the shares in Nature Energy, Shell will acquire the largest RNG producer in Europe.

Secondly, the acquisition includes its portfolio of cash generative operating plants, associated feedstock supply and infrastructure. It also includes its pipeline of growth projects and its in-house expertise in the design, construction, and operation of innovative and differentiated RNG plant technology.

Thirdly, this acquisition will increase Shell’s ability to work with its established customer base across multiple sectors to accelerate its transition to net-zero emissions.

Moreover, it will support Shell’s ambition to profitably grow its low carbon fuels production and customer offering in our world-leading customer-facing Marketing business.

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.

Huibert Vigeveno, Shell’s Downstream Director.

Value chain

Acquiring Nature Energy will add a European production platform and growth pipeline to Shell’s existing RNG projects in the United States. The company 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.

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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.

About Nature Energy

Nature Energy owns and operates 13 biogas plants located throughout Denmark. Also, it owns and operates one plant in the Netherlands while more projects are in the pipeline.

Finally, Nature Energy’s biogas plants will treat more than 4.4 million tonnes of biomass, waste from agriculture, industry and households, in 2022; converting it into more than 181 million m3 of green gas.

Know more about Nature Energy at this link:

https://nature-energy.com/

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