Denmark – Shell Petroleum has reached a deal with Davidson Kempner Capital Management, Pioneer Point Partners, and Sampension to buy 100% of Nature Energy Biogas for nearly $2 billion.
Nature Energy is a Danish company that creates Renewable Natural Gas (RNG) from municipal, industrial, and agricultural waste. Shell will acquire the largest RNG producer in Europe, its portfolio of cash-generating operating plants, related feedstock supply and infrastructure, its pipeline of growth projects, and its internal know-how in the design, construction, and management of cutting-edge and distinctive RNG plant technology by purchasing the shares of Nature Energy.
Closing in 2023
With this acquisition, Shell will be able to collaborate with its current clientele in more industries and hasten the transition to net-zero emissions. Additionally, it will help Shell achieve its goal of expanding its low-carbon fuel production and customer base profitably.
The deal is expected to finalize in Q1 2023, subject to regulatory approvals. Nature Energy generates cash, and the acquisition is anticipated to generate double-digit returns while also adding to Shell’s earnings from completion.