EKI Energy Services Enters into JVA with Shell Overseas Investments; Shares Zoom 5%

EKI Energy Services, also known as EnKing International, has entered into a joint venture agreement (JVA) with Shell Overseas Investments B.V. to work on nature-based solutions in India.

Under the JVA signed, both EKI and Shell will form the new joint venture (JV) company with 51 per cent and 49 per cent stake respectively for carrying on the business of reduction of the impact of greenhouse gases and providing offsets to emissions through Nature-Based Solutions in the areas of forestry, agriculture including agroforestry, horticulture, grasslands, wetlands, blue carbon, peatlands etc.

Commenting on the development, Manish Dabkara, CMD and CEO of EKI Energy Services Ltd said, “We, at EKI are delighted to collaborate with Shell as we enthusiastically continue our stride towards contributing to India’s mission to achieve net zero. Ushering in a new era for climate change mitigation in the country, the new company will not only further EKI’s current on-ground execution on nature-based solutions to a large scale but will also provide a much-needed impetus for climate actions in India.”

According to the terms of the agreement, each party will appoint two Directors each, with the total number of directors would be four.

On incorporation of the joint venture company, equity shares would be issued to the parties at a face value of Rs 10 per share.

“Shell has set a target to become a net-zero emissions energy business by 2050, in step with society. To achieve this, Shell is first and foremost focused on avoiding and reducing emissions and, in addition, we are working with nature to help reduce the overall concentration of greenhouse gas in the atmosphere. Through this joint venture and the collaboration with Enking, we look forward to helping unlock nature’s climate change mitigation potential and bringing lasting environmental and social co-benefits” said Kazeem Khan, Shell General Manager, Asia Pacific, Nature Based Solutions.

Buoyed by the development, scrips of EKI Energy Services closed at Rs 6,095.30 apiece, up 5%, from the previous close on the exchange.