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Nature Energy acquires Xergi

The largest producer of biogas in Denmark, NGF Nature Energy A/S, has announced that it has acquired compatriot turnkey biogas plant provider Xergi A/S from Schouw & Co. and Hedeselskabet. The move creates a single Danish company that will build, own, and operate (BOO) biogas plants in Denmark and abroad.

Denmark has unique expertise when it comes to the circular economy, and biogas production is the circular economy at its best. We’re extremely pleased that we’ve managed to conclude an agreement to incorporate Xergi’s strong competencies in Nature Energy to create one strong Danish biogas company of international class that will contribute to realising the growth potential of the circular economy, both in Denmark and abroad, said Peter Gæmelke, Chairman of the Board of Directors of Nature Energy.

Nature Energy owns and operates seven biogas plants and has in recent years acquired expertise in developing and operating large-scale biogas plants. Xergi has more than 30 years of experience in designing and constructing biogas plants around the world.

Denmark’s largest biogas plant developer and operator, NGF Nature Energy, has acquired compatriot turnkey biogas plant provider Xergi (photo courtesy NGF Nature Energy).

The possibility of combining the competences of the two companies has been the main driver for the two Xergi owners, Schouw & Co. and Hedeselskabet, in their choice of a new owner.

We entered the biogas market at a rather early stage, in the full knowledge that we were investing in a relatively immature industry. This has now changed, and we believe that Nature Energy is the perfect owner in terms of taking Xergi even further. Xergi and Nature Energy have for several years been among the driving forces behind the development of the Danish biogas sector. The two companies now merging into one strong company offers entirely new opportunities for the employees in both Xergi and Nature Energy, said Jens Bjerg Sørensen, President of Schouw & Co.

Xergi currently has a total of 80 employees in its head office in Støvring in Northern Jutland and in its sales offices in France, the United Kingdom (UK), and Japan. The 80 employees will continue to work from Støvring and the international sales offices. The company will become part of the Nature Energy group, which comprises seven biogas plants and a head office in Odense, bringing the employee total to 200.

Xergi is characterised by strong leadership and extremely skilled employees, but if the company is to really develop in the coming years, it needs to be part of something bigger. We believe that Xergi together with Nature Energy can combine their expertise to create continued growth and development, said Lars Johansson, President, and CEO of Hedeselskabet.

Export potential of DKK 16 billion

Danish exports of biogas technologies are expected to increase significantly towards 2030. According to an analysis by Damvad Analytics, up to 20 000 new jobs could be created in Denmark and an annual positive contribution of DKK 16 billion made to GDP. The acquisition of Xergi will help realise this potential.

If Denmark is to have as large a share of the European potential as possible, we need to be razor-sharp. Therefore, we are bringing together Denmark’s strongest competencies in one company to prepare for international growth. At the same time, we continue to realise our planned projects in Denmark by exploiting Xergi’s competencies. This is important as a strong domestic market is a prerequisite for international growth, said Ole Hvelplund, CEO of Nature Energy.

About Nature Energy and Xergi

Founded in 1979 under the name of Naturgas Fyn (NGF), Nature Energy is Europe’s largest producer of green biogas (biomethane) for the gas grid. The company owns and operates seven biomethane-to-grid plants and currently has a production capacity of more than 100 million Nm3 biomethane, corresponding to approximately 5 percent of the green gas in the European gas grid.

Xergi A/S designs and constructs turnkey biogas plants. Based on more than 30 years of experience, the company has developed plant concepts that are flexible, robust, reliable and easy to operate. Schouw & Co. and Hedeselskabet established Xergi in 2004 to replace Hedeselskabet’s DDH Contractors and Schouw & Co.’s Dansk Biogas. Since then, the two companies have each held a 50 percent ownership share. The company has built over 70 biogas plants in the US and Europe.

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