Royal Dutch Shell and Dutch pension fund manager PGGM are considering a joint bid for Dutch energy company Eneco, which analysts estimate to be worth around 3 billion euros ($3.4 billion), according to Reuters.

The 53 municipalities that own Eneco, which is heavily invested in sustainable energy projects, said in December they will sell it via an auction later this year.

Shell and PGGM, who gave no financial details, said they were looking for “a long term commitment” with Eneco, which is expected to appeal to energy companies that want to increase their exposure to renewable energy production.

“We are determined to invest in sustainable energy, specifically in northwest Europe”, Shell and PGGM said in a letter to Eneco stakeholders.

The decision to sell Eneco in an auction ended a heated battle between its board and shareholders, who wanted to cash in on their stakes. The board had said it would prefer a stock market listing or partial sale that would ensure continuity as a renewables-oriented company.