The Danish biomethanization giant Nature Energy – which planned to build ten factories to supply a third of the renewable natural gas needed by Énergir – is leaving Quebec. The Quebec market is not profitable enough, believes this Shell subsidiary.
Posted at 8:37 p.m.
“The regulatory environment [et] the complexities of the raw materials supply chain” would be among the factors which explain the withdrawal from Quebec of Nature Energy, mentions in an email Stephen Doolan, spokesperson for the oil company Shell which owns the Danish multinational. The oil giant also claims “that the economic aspects […] did not meet Shell's investment requirements.
This is a 180-degree turnaround for Nature Energy, which presented its projects in the province as a gateway to the North American market. In December 2022, the company announced a major partnership with Énergir, claiming to plan the construction of 10 mega-biomethanization plants to produce agricultural renewable natural gas (RNG) from slurry and manure.
These facilities were to enable the production of 200 million cubic meters of RNG and, thereby, “achieve a third of Quebec's 2030 target for RNG, which would reduce CO emissions.2 of a maximum of 400,000 tonnes, which is equivalent to removing around 100,000 petrol cars from the road.
“They informed us of this decision recently,” says Jean-François Jaimes, director of development and renewable energy at Énergir: “Perhaps the potential was not as great as they initially hoped, at least the speed at which they could develop these projects. »
The Farnham project – of which Énergir takes over 100% control with the departure of its partner – is well advanced. More than 80% of the biomass necessary for the production of RNG is currently secure, assures Mr. Jaimes, specifying that it will certainly move forward. The inauguration of the factory was planned for 2026 until recently.
Énergir Développement does not rule out the possibility of overseeing other initiatives. “We could redo the projects, but alone or with new partners. With the departure of Nature Energy, it gives us the opportunity to relaunch the project with new governance,” summarizes Mr. Jaimes, assuring “we really believe in this sector”.
In July, The Press had noted that there was already water in the gas of the company's Quebec ambitions. “We don’t put a knife to our throat by telling ourselves that we have to build 10 factories at all costs. We go there project by project. If it's only six factories, it will only be six factories. », declared the head of biomass supply at Nature Energy, Philippe Lamote.
This manager then confirmed the difficulties in collecting the 700,000 tonnes of inputs – mainly animal droppings – necessary for each project. These generally come from around a hundred farms spread over a vast territory. Projects cannot be profitable if trucks have to travel a hundred kilometers to collect the slurry or manure necessary for gas production.
It is for this reason that the multinational had put aside, in 2023, its factory project in Louiseville, in the MRC of Maskinongé. From then on, there were in fact only two projects left on Nature Energy's drawing board: the Farnham plant in Estrie and the Saint-Joseph en Beauce plant planned for 2027. Énergir does not rule out the possibility of also resuming this project which, moreover, is less advanced.
