Nature Energy Biogas A/S, announced that it has entered into a definitive agreement under which Shell Petroleum NV, a wholly owned subsidiary of Shell plc (Shell) will acquire 100% of the company for a total enterprise value of nearly USD $2 billion.
Nature Energy owns and operates 14 industrial scale biomethane plants and an international development pipeline of about 30 plants across Europe and North America. The company applies a design-build-own-operate model to all its projects. Nature Energy’s leading position in biomethane production from organic waste is underpinned by three key market drivers: the reduction of greenhouse gas emissions; providing local, secure and affordable energy; and solving for the increasing amount of organic waste in a circular manner.
For Shell, the acquisition further increases the company’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 its world-leading customer-facing marketing business.
Nature Energy is currently owned by a consortium of institutional investors, including Davidson Kempner Capital Management LP, Pioneer Point Partners and Sampension (collectively, the NGF Partnership), with deep experience developing and building European market leaders in the energy transition and environmental sectors.
Over the last five years, Nature Energy has experienced a phase of intensive organic and inorganic growth through strategic investments, with the number of plants in operation increasing from 4 to 14 and its biomethane production growing from 37mm m3 (c. 1.3mm MMBtu/yr) to approximately 180mm m3 (c. 6.5mm MMBtu/yr) today. Nature Energy has developed a series of technology-led initiatives to increase the biomethane yield and monetize other output streams. The company has expanded internationally across France, the Netherlands, and North America, and employs more than 400 people worldwide, a five-fold increase over the period.
The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the first quarter of 2023.
