Shell buys biogas producer in its greatest diversification transfer
- December 2, 2022
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Company tries to reduce dependence on fossil fuels with broader energy portfolio
Last night, Shell closed the acquisition of Nature Energy, Europe’s largest biogas producer, for 1.9 billion euros. This is the biggest move by the Anglo-Dutch oil company so far in diversifying its energy portfolio as it tries to start reducing dependence on fossil fuels, notes the Financial Times.
The acquisition of the Danish company comes after rival BP announced the purchase of Archaea Energy, a biogas producer listed on the American exchange, a month ago. BP is paying $4.1 billion in assets.
Nature Energy owns 14 operational plants and a pipeline, with about 30 new plant projects in Europe and North America, according to Dow Jones, which will form a wholly owned subsidiary of Shell.
The buyer hopes to attract investors focused on innovation and sustainability, improving its environmental reputation. Biomethane is chemically the same as natural gas, but produced from industrial, agricultural and residential waste.
Shell began investing in this segment in the US market in September, with a biomethane plant, and has another three under construction in North America. Last year, Shell produced 3.2 million barrels of oil and natural gas.
Source: Pipeline Valor