$2 billion

Shell to purchase Nature Energy from hedge fund Davidson Kempner

Shell Plc will buy Nature Energy Biogas A/S from hedge fund Davidson Kempner Capital Management for nearly $2 billion as the oil major expands its transition from fossil fuels.

The deal will make Shell the largest producer in Europe of what’s known as renewable natural gas, known as RNG, according to a statement. It taps into Shell’s plan to leverage its existing expertise producing and marketing gas for a lower-carbon economy.

Biogas is chemically the same as conventional natural gas, but is made from decomposing organic material like agricultural waste. It’s a platform primed for growth.