Shell Petroleum NV, a wholly owned subsidiary of global oil, gas, and energy major Shell plc (Shell) has announced that it has reached an agreement with Davidson Kempner Capital Management LP, Pioneer Point Partners, and Sampension to acquire 100 percent shareholding of Nature Energy Biogas A/S (Nature Energy) for EUR 1.9 billion (almost US$2 billion).
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Headquartered in Odense, Denmark, Nature Energy is a producer of biomethane aka renewable natural gas (RNG) from agricultural, industrial, and household wastes.
By purchasing the shares in Nature Energy, Shell will acquire the largest RNG producer in Europe with which it already had a long-term RNG offtake agreement.
The agreement includes the portfolio of cash-generative operating plants, associated feedstock supply, and infrastructure, its pipeline of growth projects, and its in-house expertise in the design, construction, and operation of innovative and differentiated RNG plant technology.
This transaction would not be possible without the entire Nature Energy organization, our talented and dedicated employees, our industry partners, as well as our investors — who always believed in our mission and have made invaluable contributions to Nature Energy’s growth and success. We look forward to the next phase of growth, and we remain excited about our near-term prospects to help address both the current energy insecurity, as well as the longer-term potential for biomethane capacity set out in the REPowerEU plan, commented Ole Hvelplund, CEO of Nature Energy.
Accelerate the transition to net-zero emissions
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.
The transaction is subject to regulatory approvals and is expected to close in Q1 2023.
The acquisition will be absorbed within Shell’s current capital range, which remains unchanged, and will further increase Shell’s ability to work with its established customer base across multiple sectors to accelerate its transition to net-zero emissions.
Shell’s competitiveness in low-carbon fuels derives from capabilities across the value chain, combining a world-class Trading and Supply organization with access to differentiated technology and production assets, said Huibert Vigeveno, Shell’s Downstream Director.
It will also support Shell’s ambition to profitably grow its low-carbon fuel production and customer offering
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 a global scale, at a time when energy transition policies and customer preferences are signaling strong growth in demand in the years ahead, ended Huibert Vigeveno.