Shell has announced the acquisition of Nature Energy Biogas A/S for nearly $2 billion. The acquisition will be absorbed within Shell’s current capital range, which remains unchanged. Nature Energy and its 420 employees located in Europe and North America will operate as a wholly owned subsidiary of Shell, initially under its existing brand.
“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 Vigeveno, 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 global scale, at a time when energy transition policies and customer preferences are signaling strong growth in demand in the years ahead.”
By purchasing the shares in Nature Energy, Shell will acquire the largest renewable natural gas (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 fuels production and customer offering in the world-leading customer-facing marketing business.
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.