Shell to acquire Europe’s largest RNG producer for $2B

Dive Brief:

Shell has agreed to acquire Danish renewable natural gas (RNG) producer Nature Energy Biogas — the largest RNG producer in Europe — for $2 billion, according to a Monday announcement.
The acquisition includes Nature Energy’s operating plants, feedstock supply and infrastructure, new project pipeline and the expertise the company has built up in RNG plant technology. Nature Energy and its 420 employees in Europe and North America will operate as a wholly owned subsidiary of Shell, under its existing brand for now.
The deal — Shell’s second RNG acquisition this year — moves the company toward its goal to reduce the carbon intensity of its energy products by 100% by 2050, according to the announcement.

Dive Insight:

Shell has now spent more than $3.5 billion on RNG acquisitions this year. With its latest move, the company adds a European production platform and pipeline to its existing RNG projects in the U.S., Huibert Vigeveno, Shell’s downstream director, said in the announcement. The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2023.

Shell’s RNG production business in North America includes one existing site and four under construction, according to the announcement.

“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 signaling strong growth in demand in the years ahead,” Vigeveno said.

Founded in 1979, Nature Energy established its first biogas plant in Denmark in 2015 and has grown that to 14 operating plants. The company has a pipeline of about 30 new plant projects in Europe and North America.

Shell’s acquisition of Nature Energy continues a busy year for fuel companies building their RNG capabilities. BP has already made three RNG acquisitions this year, including a $4 billion purchase of biogas producer Archaea Energy in October. Meanwhile, earlier this month, Chevron’s U.S. division agreed to acquire diversified energy solutions company Beyond6, including its 55 compressed natural gas (CNG) stations across 16 U.S. states.