(Bloomberg) -- Nature Energy, one of Europe's largest biogas producers, is considering options including a possible sale amid surging demand for alternative energy sources, people familiar with the matter said.
The company, based in the Danish city of Odense, is working with a financial adviser as it prepares to gauge interest from potential buyers, the people said. A full sale could fetch as much as $2 billion, according to the people, who asked not to be identified as the matter is private.
Nature Energy is likely to attract interest from infrastructure investors as well as large energy companies, according to the people. Deliberations are at an early stage, and details including valuation may change, the people said. Nature Energy's owners could also opt to hold the business for longer, according to the people.
The market chaos exacerbated by Russia's invasion of Ukraine has added impetus for European countries to find new sources of energy. Nature Energy plans to spend about $5.5 billion on new plants, mostly in overseas markets, to tap rising demand amid a push to reduce carbon emissions, Chief Executive Officer Ole Hvelplund said in an interview last year.
Nature Energy is owned by hedge fund manager Davidson Kempner, private equity firm Pioneer Point Partners and Danish pension fund Sampension. A spokesperson for Nature Energy declined to comment. Representatives for its investors declined to comment or referred queries to the company.
Nature Energy, which controls roughly a third of Denmark's biogas market, currently has 11 plants across the country, according to its website. Last year, its facilities were expected to treat more than 4 million tonnes of biomass -- waste from agriculture, industry and households -- and convert it into biogas.
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