Home Energy company Shell moves to next tender for Danish biogas producer Nature Energy – sources

Shell moves to next tender for Danish biogas producer Nature Energy – sources

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  • Shell among a number of companies in second-round talks
  • Nature Energy valued at around $2 billion – sources

LONDON, Oct 18 (Reuters) – Shell (SHEL.L) is among a number of companies joining a second tender to acquire Danish biogas producer Nature Energy, three sources familiar with the news said. dossier, as energy companies rush to boost low-carbon emissions. businesses.

The sale is expected to close by the end of this year and could value Nature Energy at around $2 billion, the sources said.

It comes amid growing interest in biogas, which is produced from agricultural waste and other biological waste and could replace some of the fossil fuels that keep the world’s major economies running.

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BP (BP.L) agreed on Monday to buy US renewable natural gas producer Archaea Energy Inc (LFG.N) for about $4.1 billion. It aims to increase its production fivefold by 2030.

Nature Energy accepted initial bids for the second round of auctions in the last week of September, two sources told Reuters.

It was unclear which other companies besides Shell made it to the second round of bidding.

Shell declined to comment. Nature Energy declined to comment.

JP Morgan is leading the sale of current owners of Nature Energy, asset manager Davidson Kempner, European private equity fund Pioneer Point Partners and Danish pension fund Sampension.

JP Morgan declined to comment.

Nature Energy operates 12 biogas plants in Denmark and one in France and has more in the pipeline, according to its website. It plans to treat 4.4 million tonnes of waste in 2022 and transform it into 181 million cubic meters of green gas, which can be used for transport or domestic heating.

BP (BP.L) and Repsol (REP.MC) also considered offers for the company, but both dropped out, two people familiar with the matter said.

Hong Kong’s CK Infrastructure Holdings (1038.HK) also worked on a bid but did not make it to the second round, two sources said.

BP, Repsol and CK Infrastructure Holdings did not immediately respond to requests for comment.

The rush for alternative fuels took on new urgency this year as Russia’s invasion of Ukraine drove up the price of natural gas and exposed import-dependent Europe’s vulnerability to supply disruptions.

Shell is already a customer of Nature Energy, having signed on in 2020 to buy some of its biomethane, a product that still depends on government support and has yet to see the breakthroughs in technology and scale seen in wind power. and solar.

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Reporting by Ron Bousso and Isla Binnie; Editing by Susan Fenton

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