Energy major, Shell, through its unit Shell Petroleum, has completed the acquisition of Europe’s largest producer of renewable natural gas (RNG), 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 unveiled by Shell at the end of November last year. The company was founded in 1979 as a natural gas distributor. However, since establishing its first biogas plant in Denmark in 2015, the company has built a portfolio of 14 operating plants, with a 2022 production reaching 6.5 mln MMBtu per year (3,000 boe/d).
Furthermore, with the acquisition, Shell has gained a pipeline of growth projects as well as Nature Energy’s in-house expertise in the design, construction and operation of the RNG plant technology. In return, Shell expects double digit returns in terms of earnings from the acquired business. The pipeline of growth projects includes around 30 new developments in Europe and North America, with facilities in Denmark, the Netherlands and France having a potential to deliver 9.2 mln MMBtu per year by 2030, Shell said.
Shell also has an existing RNG production business in North America, with one operational facility and three more under construction. In Europe the company has a trading portfolio, and the added volume from Nature Energy will help Shell transition its existing LNG customers to BioLNG, looking to supply road and marine customers as well as clients in other industries.
The acquisition, according to Shell, is also in line with the company’s ambitions to build an integrated RNG value chain at global scale and to profitably grow its low-carbon offerings to customers across multiple sectors. “This transaction fits 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, Shell’s statement reads.
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 decarbonize multiple hard to abate sectors including commercial road transport, marine, heating and heavy industry, Shell said.
