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Investment consortium acquires Denmark-based biogas producer Nature Energy

PKBR Staff Writer Published 14 March 2018

Denmark-based biogas producer Nature Energy has been acquired by a consortium of European private equity energy investment firm Pioneer Point Partners, global investment firm Davidson Kempner, and Danish pension fund Sampension.

Nature Energy, with an enterprise value of DKK1.1bn and debt facilities from the Danish government’s Green Investment Fund and local banks, is expected to have 17 biogas plants, including two facilities which are under construction, within the next five to ten years.

Nature Energy CEO Ole Hvelplund said: “The new ownership will help us to continue to enhance our production of green gas to grid at home and begin to grow our business beyond Denmark.”

Pioneer Point Partners founding partner Sam Abboud said: “Nature Energy is a European leader in the emerging green gas to grid sector, and sits at the intersection of green energy production, the circular economy in waste management, and sustainable farming.

“Green gas injected into the European gas grid can be stored, which is critical to driving more renewable energy because it balances intermittent power sources such as wind and solar. Green gas also provides a direct path to green transport and heating using existing distribution infrastructure.”

The new owners are planning to use Nature Energy’s capital base to accelerate green gas growth to grid plant pipeline as well as to develop new business activities in Europe and globally.

Abboud added: “We firmly believe that Nature Energy is the perfect platform to build a European giant in the emerging sector of grid injected waste-derived green gas, following other innovative Danish renewable energy players such as Vestas and Ørsted (formerly DONG) that have gone global.”

The sale of Nature Energy, which was privatized, is part of a wider transformation of the gas sector in the country.

As part of this effort, the government has acquired the gas grid to realize an efficiency potential for the benefit of Danish gas consumers.

According to the European Biogas Association estimates, the biomethane will grow over 15x from 1.2 billion m3 in 2015 to 18 billion m3 by 2030.

Invest in Denmark & Innovation at the Danish Ministry of Foreign Affairs director Steen Hommel said: “We clearly see this as a high value impact investment for Denmark. This will not only boost Nature Energy’s potential to export green gas to grid technology and infrastructure abroad, but also create jobs and R&D at home, allowing Nature Energy to contribute significantly to the green transition and growth of the Danish economy.”