Oil and gas major Shell is to acquire an Australia-based carbon management firm as part of its net-zero emissions strategy, Kallanish Energy reports.
Shell Australia will acquire Select Carbon for its Nature-Based Solutions business for an undisclosed fee. This marks the first acquisition of its kind for this part of the Shell organisation, as it aims to achieve net-zero emissions by 2050 or sooner.
Select Carbon specialises in carbon dioxide (CO2) storage in forests, grasslands, wetlands and other natural ecosystems to reduce greenhouse gas (GHG) emissions. The company currently owns and manages a portfolio of over 70 projects in Australia, covering different ecosystems and agricultural uses.
Projects operated by Select Carbon generate carbon credits which are fulfilled through sale by the Australian government’s Emissions Reduction Fund. Shell stated that each carbon credit generated represents “the avoidance or removal of 1 tonne of carbon dioxide.”
The acquisition is expected to close before year-end and is subject to regulatory approval by Australian authorities.
Shell stated that Australia represents a “priority market” for investment in renewable and lower-carbon sources of energy. The acquisition of Select Carbon follows similar investments in commercial and industrial energy retailer ERM Power, solar systems and battery producer sonnen, and solar developer ESCO Pacific.
“The scale of Australia’s rangelands, ecological diversity and integrity of intact primary forests make this market a natural choice for Shell’s first acquisition globally for our Nature-Based Solutions business and to further scale Shell’s investment in this area here in Australia,” said Shell Australia chairman, Tony Numan.
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