MOSCOW (MRC) -- Shell Petroleum has completed the acquisition of renewable natural gas (RNG) producer Nature Energy Biogas (Nature Energy), said the company.
By purchasing all shares in Nature Energy, Shell says it has bought the largest producer of renewable natural gas (RNG) in Europe, its portfolio of operating plants, associated feedstock supply and infrastructure, pipeline of growth projects and in-house expertise in the design, construction, and operation of innovative and differentiated RNG plant technology. Shell announced the deal on November 28 last year.
This acquisition supports Shell’s ambitions to build an integrated RNG value chain at global scale and profitably grow its low-carbon offerings to customers across multiple sectors. Nature Energy will operate as a wholly owned subsidiary of Shell, initially under its existing brand.
Founded in 1979 as a natural gas distributor, the company established its first biogas plant in Denmark in 2015 and now has 14 operating plants with associated infrastructure, feedstock arrangements, and 2022 production of around 6.5MMBtu/yr (3,000 boe/d).
Last month Nature Energy’s 13th biogas plant in Denmark was inaugurated by Lars Aagaard, Minister for Climate, Energy and Utilities. The company also has a pipeline of around 30 new plant projects in Europe and North America. More than a third of these projects are in medium to late development stage in Denmark, the Netherlands and France and could deliver up to 9.2 mln MMBtu/yr (4,400 boe/d) by 2030, subject to future final investment decisions and relevant regulatory approvals.
In the coming years, around DKK 7bn will be invested in building up to 10 biomethane plants in Quebec together with Energir, Quebec’s leading gas supply company, marking Nature Energy’s largest international investment to date. Nature Energy and Energir will jointly develop, build, and operate biomethane plants that together can supply 200m m3 of biogas per year, corresponding to one third of Quebec’s target for CO2 reduction by 2030.
RNG, also known as biomethane, is chemically identical to conventional natural gas and can be used in existing transmission and distribution infrastructure.
This makes it a competitive option to help decarbonise multiple hard to abate sectors including commercial road transport, marine, heating and heavy industry. The sustainability benefits are amplified by the processing and use of methane that could otherwise be released to the atmosphere from the decomposition of organic by?products and waste.
Shell has an existing RNG production business in North America, with one operational site and three under construction. Shell also has an existing RNG trading portfolio in Europe, to which this acquisition will add new volumes and support Shell’s efforts to transition its growing European LNG customer base to BioLNG, with supply intended to span road, marine and other customers.
Shell has a target to be a Net Zero emissions energy business by 2050. It aims to reduce the carbon intensity of its products by 6-8% this year, 9-12% in 2024, 20% by 2030, 45% by 2035, and 100% by 2050.
We remind, Shell Chemical Appalachia LLC announced it has commenced operations of its Pennsylvania Chemical project, Shell Polymers Monaca (SPM). The Pennsylvania facility is the first major polyethylene manufacturing complex in the Northeastern United States and has a designed output of 1.6 MMt annually.