Energy major Shell, through its Shell Petroleum unit, has completed the acquisition of Europe’s largest renewable natural gas (RNG) producer, Nature Energy Biogas. Shell has acquired Nature Energy’s portfolio of operating plants, associated feedstock supply and infrastructure.
The agreement to acquire Nature Energy was presented by Shell at the end of November last year. The company was founded in 1979 as a distributor of natural gas. However, since establishing its first biogas plant in Denmark in 2015, the company has built a portfolio of 14 plants in operation, with production in 2022 reaching 6.5 million MMBtu per year (3,000 boe /d).
In addition, with the acquisition, Shell has gained a portfolio of growth projects as well as Nature Energy’s in-house expertise in the design, construction and operation of GRN plant technology. In return, Shell expects double-digit returns in terms of earnings from the acquired business. The growth project portfolio includes around 30 new developments in Europe and North America, with facilities in Denmark, the Netherlands and France with the potential to deliver 9.2 million MMBtu per year by 2030, Shell said .
Shell also has an existing GRN production business in North America, with one facility operating and three more under construction. In Europe, the company has a commercial portfolio and the added volume from Nature Energy will help Shell transition its current LNG customers to BioLNG, looking to supply road and marine customers as well as customers in other industries.
The acquisition, according to Shell, is also in line with the company’s ambitions to build an integrated GRN value chain on a global scale and profitably grow its low-carbon offerings to customers in various sectors. “This transaction is in line with Shell’s Powering Progress strategy to accelerate its energy transition and will be absorbed within our 2023 capital range of $23-27 billion,” the company said.
Nature Energy will operate as a wholly owned subsidiary of Shell, initially under its existing brand, according to Shell’s statement.
RNG, also known as biomethane, is chemically identical to conventional natural gas and can be used in existing transmission and distribution infrastructure. This makes it a competitive option to help decarbonise multiple hard-to-reduce sectors such as commercial road transport, marine, heating and heavy industry, Shell said.
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