Shell Petroleum NV, a wholly owned subsidiary of Shell plc (Shell), has reached an agreement with Davidson Kempner Capital Management LP, Pioneer Point Partners, and Sampension to acquire 100% shareholding of Nature Energy Biogas A/S (Nature Energy) for nearly USD $2 billion (€ 1.9 billion). The acquisition will be absorbed within Shell’s current capital range, which remains unchanged.
Based in Denmark, Nature Energy is a producer of 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, its 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 acquisition will further increase Shell’s ability to work with its established customer base across multiple sectors to accelerate its transition to net-zero emissions. It will also support Shell’s ambition to profitably grow its low-carbon fuel production and customer offering in our world-leading customer-facing Marketing business.
“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 Vigevano, Shell’s Downstream Director. “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.”
The transaction is subject to regulatory approvals and is expected to close in Q1 2023. 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.