Investment consortium acquires Denmark’s largest biogas producer

By Invest in Denmark | [email protected]

23 April 2018

Nature Energy, the largest producer of biogas in Denmark and the leading producer of green gas to grid in Europe from farm and food waste, has been acquired by a consortium comprised of European private equity energy investment specialists Pioneer Point Partners, global investment firm Davidson Kempner, and leading Danish pension fund Sampension.

The privatisation of Nature Energy – a company founded by eight local Danish municipalities in 1979 as a natural gas distributor - marks a new growth era for the company, its management and employees. With an enterprise value of DKK 1.1 billion and debt facilities available from the Danish government’s Green Investment Fund and local banks, Nature Energy is poised to grow from 5 operational plants up to 17 domestically (including 2 under construction) within the next 5-10 years and to leverage Denmark’s pioneering position in green gas to grid production by expanding internationally.

"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," tells Sam Abboud, Founding Partner Pioneer Point Partners.

Green transition can create jobs
The vision to develop and expand Nature Energy will be realised from Funen, Denmark, where Nature Energy will remain headquartered.

As the company grows into an international centre of excellence in green gas to grid from farm and food waste, the investor consortium expects that both operations and local job numbers will increase. That ambition is supported by the Danish Ministry of Foreign Affairs:

"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," explains Steen Hommel, Director Invest in Denmark, and continues:

"The sale of Nature Energy is part of a wider transformation of the Danish gas industry where the Danish government has acquired the gas grid in order to realise an efficiency potential for the benefit of Danish gas consumers."

Join the green movement in Denmark
Denmark strongly encourages the production and use of bioenergy through supportive government initiatives and ambitious political targets for renewable energy. In fact, the bioenergy industry is the largest contributor to Denmark’s green energy transition.

During the last couple of years, Denmark has invested approximately EUR 7.4 billion into a nation-wide gas grid infrastructure and over 400 000 Danish homes and business use gas for heating and industrial processes. This presents lucrative opportunities for international companies looking to invest.