(E.T)
Indore-based green consultancy EKI Energy Services will float a joint venture with oil major Royal Dutch Shell that will invest $1.6 billion over a five-year period to provide “nature-based solutions” to industries in India, people familiar with the matter said. The joint venture will target production of 115 million carbon credits in five years, as part of Shell’s plan to expand in India’s renewables space, these people told .
EKI Energy will hold 51% in the joint venture, while Shell will own the remaining 49%. The companies did not comment on the development. A formal announcement is likely to be made this week. The joint venture will cater to green requirements of Shell in India as well as other domestic industries in the backdrop of India’s commitment to net-zero carbon emission goals, they said.
EKI Energy listed on the BSE in April this year at ₹102 a share. On Tuesday, the company’s stock closed at ₹5,298 a share. At COP26 in Glasgow last month, Prime Minister Narendra Modi had announced India’s aim to achieve net-zero emissions by 2070.Nature-based solutions refer to restoring, managing, and building green infrastructures. Examples include afforestation and conservation of coral reefs, seagrasses, urban green spaces, rivers, and mangroves. These are intended to reduce climate risk as well as restore and protect biodiversity.Founded in 2008, EKI provides, what it describes as, end-to-end climate change, carbon credits and sustainability solutions. This includes development, supply and trading of carbon credits or carbon offsets, which are instruments issued to entities for low carbon emissions.The company has 2,500 clients in 40 countries including the World Bank, the Indian Railways, NTPC, Adani Group, SoftBank Group, Aditya Birla Group and NHPC.
