Main menu

Pages

Biogas company Nature Energy attracts acquisition interest from Shell and BlackRock

featured image

The sale of green energy producer Nature Energy is the first to draw interest from energy giants such as BP Plc and Shell Plc, according to people familiar with the matter.

Article content

(Bloomberg) — The sale of green energy producer Nature Energy is drawing initial interest from energy giants including BP Plc and Shell Plc, according to people familiar with the matter.

BlackRock Inc., Global Infrastructure Partners and EQT AB are also considering potential offers for the Danish company amid surging demand for alternative fuel sources, the people said. French utility Engie and private equity firm KKR&Co are separately considering the ventures, said the people, who asked not to be identified because the information is private.

advertising 2

Article content

Nature Energy is valued at more than $2 billion in a single sale, and a first round of bidding is expected in the coming weeks, said the people, who asked not to be identified because the information is private. is planned.

Deliberations are ongoing and there is no certainty that any of the suitors will decide to proceed with the proposal, according to people familiar with the matter. Nature Energy will decide not to sell if valuation expectations are not met It is possible, they said.

Representatives for BlackRock, BP, EQT, KKR and Shell declined to comment, while spokespeople for Engie, GIP and Nature Energy did not immediately comment.

in demand

Renewable energy companies are in high demand as the global drive to reduce carbon emissions increases. This change was accelerated this year by Russia’s war in Ukraine. This has led to shortages of traditional gas and electricity, increasing the need to find alternatives.

advertising 3

Article content

Based in the Danish city of Odense, Nature Energy’s facility will process biomass (waste from agriculture, industry and households) and convert it into biogas. The company plans to spend about $5.5 billion on new plants, primarily in overseas markets, to capture growing demand.

Such businesses are attractive to large oil companies looking to become greener through acquisitions, as well as investors looking to add green assets to their portfolios. BlackRock last month agreed to acquire US-based renewable gas producer Vanguard Renewables.

Bloomberg News reported this week that Montauk Renewables, which produces energy from methane recovered from landfills, is also exploring a potential sale.

Nature Energy is owned by hedge fund manager Davidson Kempner Capital Management, private equity firm Pioneer Point Partners and Danish pension fund Sampension.

advertisement

comment

Postmedia is committed to maintaining an active yet respectful forum for discussion and encourages all readers to share their opinions on our articles. It may take up to an hour to moderate your comments before they appear on the site. Please keep your comments relevant and respectful. You have enabled email notifications. You will now receive an email when you receive a reply to a comment, when a comment thread you are following is updated, or when someone is following your comment. For more information and details on how to adjust your email preferences, please see our Community Guidelines.

Comments