- Shell Petroleum has struck a deal valued at US$2Bn to acquire Nature Energy Biogas, Europe’s largest producer of biogas
According to Riviera Maritime Media article published on November 30, 2022, an agreement to acquire 100% of the shares of Nature Energy was reached in November between Shell and Davidson Kempner Capital Management, Pioneer Point Partners and Sampension.
Founded in Denmark in 1979, Nature Energy produces carbon-neutral biogas — also known as renewable natural gas (RNG) and biomethane — from agricultural, industrial, and household waste streams. Once liquefied into bioLNG it can be used as fuel for commercial and residential power, heating and marine and road transport.
BioLNG is seen as an important alternative fuel for shipping, providing shipowners a pathway to reduce CO2 and greenhouse gas (GHG) emissions to meet IMO’s decarbonisation targets in 2030 and 2050.
Through the acquisition, Shell would add Nature Energy’s 14 operating biogas plants with associated infrastructure, feedstock arrangements, and current 2022 production of around 6.5M MMBtu/yr (3,000 boe/d).
Development is also underway on some 30 new plant projects in Europe and North America. More than a third of these are targeted for Denmark, the Netherlands and France, potentially delivering 9.2M MMBtu/yr (4,400 boe/d) by 2030.
One such project that has already been approved and is under construction is Nordliq, a bioLNG plant at the Port of Fredrikshavn, Denmark. Initially, the Nordliq plant will have the capacity to produce 20,000 tons of bioLNG per year, with the possibility of subsequent production reaching 120,000 tons per year.
Once the facility becomes operational, ships operating in the Baltic Sea near the port will have access to bunkering with bioLNG.
Shell’s acquisition underpins its ambition to grow its low-carbon fuels production says Shell downstream director Huibert Vigeveno. “Acquiring Nature Energy will add a European production platform and growth pipeline to Shell’s existing RNG projects in the United States,” said Mr Vigeveno. “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 transaction is subject to regulatory approvals and is expected to close in Q1 2023.
