LNG

Danish companies Makeen Energy and BB Bioenergi have signed an agreement on building a new liquefaction plant to make liquefied biogas from waste as Northeast Europe leads biogas developments that have attracted takeovers by energy majors.

Makeen and BB Bioenergi plan to construct the biogas liquefaction facility in North Denmark.

The facility will be added to BB Bioenergi’s existing biogas plant to convert the biogas to liquid form and to sell as fuel.

Denmark-based engineering company Makeen Energy will cooperate with BB Bioenergi to produce liquefied biogas for trucking transportation and industry.

Biogas technology

“By integrating Makeen Energy’s technology for liquefaction of biogas into their biogas plant in North Denmark, BB Bioenergi will offer an easily transportable and CO2-reducing alternative to diesel and other fossil fuels to its customers,” the companies explained.

“BB Bioenergi’s ambition is to create the biogas plant of the future in which the liquefaction process is partly powered by energy that the plant itself generates from waste materials from the production of biogas by putting it through a pyrolysis facility on-site,” they added.

Aside from the liquefaction of biogas, BB Bioenergi also aims to collect and liquefy the carbon-dioxide from the biogas plant.

They stated that the goal of the collaboration was to create a “visionary biogas plant” that can show the way forward for biogas production in Denmark.

“We wanted a local partner and not just a supplier - someone with expertise within the field who understands our needs and can assist us in both current and future challenges in our sector,” said Daniel Overgaard Pedersen, Chief Executive of BB Bioenergi.

“I am happy to have found that in Makeen Energy and I really look forward to working together,” the CEO added.

Frej Olsen, Head of the Cryo division at Makeen, said that when he heard BB Bioenergi explaining its vision he felt it was a project that made sense.

Future demand

“The fact that they chose our technology for their new plant makes us very proud, and it shows how valuable solutions of this kind are in accommodating the energy demands of the future,” Olsen added.

Analysts note the energy majors have been targeting European biogas companies producing fuel from agricultural, industrial and household waste with Denmark being one of the main biogas development areas in Northwest Europe.

A Shell subsidiary in February 2023 completed the $2 billion acquisition of Europe’s largest renewable natural gas (RNG) company, Nature Energy Biogas of Denmark.

Nature Energy established its first biogas plant in Denmark in 2015 and at the time of the takeover had 14 operating plants with associated infrastructure, feedstock arrangements and production of around 6.5 million MMBtu per annum.

Shell Petroleum NV, a wholly owned subsidiary of Shell plc, has completed the $2 billion acquisition of Europe’s largest renewable natural gas (RNG) company, Nature Energy Biogas.

Based in Denmark, Nature Energy is a producer of RNG from agricultural, industrial and household waste.

Shell has now completed the takeover from the previous owners who were three equity and pension funds, Davidson Kempner Capital Management LP, Pioneer Point Partners and Sampension.

“By purchasing the shares in Nature Energy, Shell has acquired the largest producer of RNG in Europe, its portfolio of operating plants, associated feedstock supply and infrastructure,” said Shell.

“We also acquire its pipeline of growth projects and its in-house expertise in the design, construction, and operation of innovative and differentiated RNG plant technology,” added Shell.

Value chain

Shell said the acquisition supported Shell’s ambitions to build an integrated RNG value chain at global scale and to profitably grow its low-carbon offerings to customers across multiple sectors.

Nature Energy will operate as a wholly owned subsidiary of Shell, initially under its existing brand.

Shell said Nature Energy would now add a European production platform and growth pipeline to Shell’s existing RNG projects in the United States.

The Danish company will operate as a wholly owned subsidiary of Shell, initially under its existing brand.

Shell noted that Nature Energy was founded in 1979 as a natural gas distributor.

The company established its first biogas plant in Denmark in 2015 and now has 14 operating plants with associated infrastructure, feedstock arrangements and current production of around 6.5 million MMBtu per annum.

The company also has a line of around 30 new plant projects in Europe and North America.

More than a third of these projects are in medium to late development stage in Denmark, the Netherlands and France and can deliver up to 9.2M MMBtu per year.

Shell Petroleum NV, a subsidiary of Shell plc, has agreed to pay $2 billion to acquire Europe’s largest renewable natural gas (RNG) company, Nature Energy Biogas.