Nature Energy, Shell sign biomethane deal

By Erin Voegele | July 08, 2020

Denmark-based Nature Energy on July 1 announced it has entered into a long-term agreement to sell biomethane to Shell Energy Europe Ltd. The company said the agreement demonstrates the important role biomethane can play in Europe’s transition to a lower-carbon society.

Nature Energy currently operates 12 biogas plants, 10 of which are located in Denmark. According to the company, its biogas facilities will treat more than 5 million metric tons of biomass this year, converting it into 170 million cubic meters of green gas. Nature Energy said that volume of biogas is enough to heat 72,000 homes.

“The agreement is a seal of approval of biomethane as a key driver in the energy transition globally,” said Ole Hvelplund, CEO of Nature Energy. “We are proud that a major energy player like Shell is investing in our biomethane.

“This agreement is a commercial breakthrough for biomethane,” he continued. “The size of the agreement also gives us more strength to realize new biomethane projects. We have ambitions to build several large-scale biomethane plants in Denmark, North America and other parts of Europe, and the agreement with Shell is a crucial step for both Nature Energy and the energy transition. 

“In our dialogue with Shell, we have seen how important it is for them to contribute to the energy transition,” Hvelplund said. “For this reason, we have no doubt that it is the right thing to come together in pursuit of spreading biomethane across Europe.” 

“Biomethane has an important role to play in the energy transition,” said Jonathan McCloy, general manager for gas at Shell Energy Europe. “This purchase is an important part of our work to provide a range of lower-carbon energy choices for our customers across Europe. We are pleased to strengthen our relationship with Nature Energy through this biomethane supply deal.”