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Shell Agrees New Biogas Supply Deal

Oil and gas company Shell has secured a deal with a Danish company for the supply of biogas, Reuters reported.

Nature Energy, which produces biomethane, has agreed to supply Shell and the gas will be supplied to the pipeline network in Europe from 1 July this year.

The size and financial details of the contract were not disclosed, although the news provider revealed that Nature Energy aims to produce 170 million cubic litres of biogas across its ten plants this year.

According to Reuters, Denmark is one of the countries that could see biogas becoming an even greater part of its energy mix. At present, this fuel accounts for around one-fifth of the nation’s entire gas consumption, but if there is continued political support this could provide 100 per cent of the country’s gas needs by 2035, Ole Hvelplund, chief executive at Nature Energy, said.

Bioenergy Insight recently reported on a letter sent to the UK government, in which several trade associations supporting the renewables industry called for politicians to put renewables front and centre of any Covid-19 recovery plan.

As the chief executive of the Anaerobic Digestion and Bioresources Association (ADBA) Charlotte Morton pointed out, the AD and biogas sector alone has the potential to reduce the UK’s greenhouse gas emissions by six per cent in the coming decade. 

She also pointed out that the sector could create 30,000 direct jobs in this period and would be particularly useful to aid the decarbonisation of sectors such as heat, agriculture and transport, which are often difficult areas to tackle.

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