Shell Petroleum NV, a wholly owned subsidiary of Shell plc (Shell), has reached a deal with Davidson Kempner Capital Management LP, Pioneer Point Partners and Sampension to acquire 100% shareholding of Nature Energy Biogas A/S (Nature Energy) for nearly USD $2 billion (€ 1.9 billion). The purchase will fit into Shell’s current capital range, which is unaltered.
Nature Energy is a Danish company that creates Renewable Natural Gas (RNG) from municipal, industrial, and agricultural waste.
Shell will acquire the largest RNG producer in Europe, its portfolio of cash-generating operating plants, related feedstock supply and infrastructure, its pipeline of growth projects, and its internal know-how in the design, construction, and management of cutting-edge and distinctive RNG plant technology by purchasing the shares of Nature Energy.
With this acquisition, Shell will be able to collaborate with its current clientele in more industries and hasten the transition to net-zero emissions. Additionally, it will help Shell achieve its goal of growing its production of low carbon fuels and customer offerings profitably in our industry-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,” 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 deal is expected to finalize in Q1 2023, subject to regulatory approvals. Nature Energy generates cash, and the acquisition is anticipated to generate double-digit returns while also adding to Shell’s earnings from completion.