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Shell Petroleum acquires Europe’s largest RNG producer

Shell Petroleum NV, a wholly owned subsidiary of Shell plc, closed a deal to acquire Nature Energy Biogas A/S for a total enterprise value of nearly $2 billion.

By purchasing 100% of the shares in Nature Energy, Shell has acquired the largest producer of renewable natural gas (RNG) in Europe, its portfolio of operating plants, associated feedstock supply and infrastructure, as well as its pipeline of projects and in-house expertise in the design, construction, and operation of RNG plant technology, the company said in a release Feb. 20.

Nature Energy established its first biogas plant in Denmark in 2015 and now has 14 operating plants with associated infrastructure, feedstock arrangements, and 2022 production of about 3,000 boe/d.

The company also has a pipeline of around 30 new plant projects in Europe and North America. Over one-third are in medium to late development stage in Denmark, the Netherlands, and France and could deliver up to 4,400 boe/d by 2030, subject to future final investment decisions and relevant regulatory approvals, Shell said.

RNG, also known as biomethane, is chemically identical to conventional natural gas and can be used in existing transmission and distribution infrastructure, making it a competitive option to help decarbonize multiple hard to abate sectors, Shell said.

Shell has an existing RNG production business in North America, with one operational site and three under construction. Shell also has an existing RNG trading portfolio in Europe.

Nature Energy will operate as a wholly owned subsidiary of Shell, initially under its existing brand.