The joint venture will aim to produce 115 million carbon credits over five years, as part of Shell’s plan to expand into India’s renewable energy space, the people told ET.
EKI Energy will own 51% of the joint venture, while Shell will own the remaining 49%.
The companies did not comment on the development. An official announcement is expected to be made this week.
The joint venture will meet the green requirements of Shell in India as well as other domestic industries in the context of India’s commitment to net zero carbon emissions targets, they said.
EKI Energy listed on the ESB in April this year at 102 per share. The company’s shares closed at 5,298 per share on Tuesday.
At COP26 in Glasgow last month, Prime Minister Narendra Modi announced India’s goal of achieving net zero emissions by 2070.
Nature-based solutions refer to the restoration, management and construction of green infrastructure. Examples include afforestation and conservation of coral reefs, seagrass beds, urban green spaces, rivers and mangroves. These aim to reduce climate risks as well as restore and protect biodiversity.
Founded in 2008, EKI provides what it describes as end-to-end solutions for climate change, carbon credits and sustainability. This includes the development, provision and trading of carbon credits or carbon offsets, which are instruments issued to entities for low carbon emissions.
The company has 2,500 customers in 40 countries, including the World Bank, Indian Railways, NTPC, Adani Group, SoftBank Group, Aditya Birla Group and NHPC.