Shell Acquires Biogas Producer Nature Energy For $2B

  • Shell Petroleum NV, a wholly owned subsidiary of Shell PLC SHEL, has agreed to acquire 100% shareholding of Denmark’s Nature Energy Biogas A/S for $2 billion (€ 1.9 billion). 
  • The acquisition will be absorbed within Shell’s current capital range, which remains unchanged.
  • Nature Energy produces Renewable Natural Gas (RNG) from agricultural, industrial, and household wastes.
  • Through the deal, Shell will acquire the largest RNG producer in Europe, its portfolio of cash-generative operating plants, associated feedstock supply, and infrastructure.
  • It will also gain access to Nature Energy’s in-house expertise in the design, construction, and operation of RNG plant technology.
  • The 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.
  • Nature Energy has 14 operating plants with associated infrastructure, feedstock arrangements, and current 2022 production of around 6.5 million MMBtu/yr.
  • RNG, also known as biomethane, is chemically identical to conventional natural gas and can be used in existing transmission and distribution infrastructure. 
  • The transaction is expected to be completed in 1Q23.
  • Shell expects Nature Energy to be accretive to its earnings from completion and deliver double-digit returns. 
  • Price Action: SHEL shares are trading higher by 1.95% at $57.59 in premarket on the last check Tuesday.
  • Photo Via Company
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