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.
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