Shell Petroleum NV, a wholly-owned subsidiary of Shell plc, has completed the acquisition of 100% of the shares of a Denmark-based renewable natural gas producer (RNG, also known as biomethane) Nature Energy Biogas A/S.
By purchasing the shares, Shell has acquired Nature Energy’s portfolio of 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.
According to Shell, the acquisition supports its ambitions to build an integrated RNG value chain at a global scale and to profitably grow its low-carbon offerings to customers across multiple sectors.
In addition, the acquisition is expected to be accretive to Shell’s earnings from completion and to deliver double-digit returns.
To note, in its future endeavours, Nature Energy will operate as a wholly-owned subsidiary of Shell, initially under its existing brand.
Nature Energy, founded in 1979 as a natural gas distributor, established its first biogas plant in Denmark in 2015 and now has 14 operating plants with associated infrastructure, feedstock arrangements and 2022 production of around 6.5 mln MMBtu/yr (3,000 boe/d1).
The company also has a pipeline of around 30 new plant projects in Europe and North America.
Shell said the transaction fits Shell’s Powering Progress strategy to accelerate its energy transition and will be absorbed within its 2023 capital range of $23-27 billion.
RNG is chemically identical to conventional natural gas and can be used in existing transmission and distribution infrastructure, and according to Shell, it makes it a competitive option to help decarbonise multiple hard-to-abate sectors including commercial road transport, marine, heating and heavy industry.
Shell has an existing RNG production business in North America, as well as an existing RNG trading portfolio in Europe.
Shell has a target to be a net-zero emissions energy business by 2050. .