Energy major Shell has now formally acquired the biggest renewable natural gas (RNG) producer in Europe, Nature Energy.
Nature Energy was founded as a distributer of natural gas in 1979, but since building an initial Danish biogas plant in 2015, it has gone on to establish a total of 14 plants that were capable of producing 6.5 million MMBtu of RNG per year in 2022. The acquisition of these plants will considerably boost Shell’s RNG capacity, which currently comprises just one active facility, with a further three currently being built. The company also expects the acquired business to generate double-digit returns.
In addition to the operational facilities, Shell will also gain the expertise of Nature Energy in designing, building, and operating RNG plants, as well as a project pipeline of 30 new facilities in France, Denmark, the Netherlands and North America. According to Shell, these could be producing 9.2 million MMBtu per year of RNG by the end of the decade. This additional capacity will help Shell to supply sustainable LNG to sectors like marine and road transport.
According to Shell, which makes the Gadus grease range, the acquisition forms part of the company’s plan to establish an integrated value chain for RNG that will help it to deliver low-carbon energy on a global scale to various sectors.
Nature Energy will, despite being entirely owned by Shell, initially continue to operate under its existing branding. There is a possibility that this may change in the future.