Total, the French energy giant, announced today the acquisition of a 20% minority interest in Adani Energy Limited (AGEL), the world’s largest solar developer. The acquisition involves a $2,5 billion investment that was accorded back in 2018 between Total and Adani Group.
The acquisition will deepen the partnership between the two companies, as it involves LNG terminals, gas utility businesses and renewable assets across India. It will further strengthen both companies compromises in participating in a sustainable economy for India’s renewable future.
According to the statement, the partnership between Adani and Total began back in 2018, when the companies invested in Adani Gas Limited, a gas distribution business associated with LNG terminals.
Under such agreement, companies continued their alliance onto the renewable energy business with the acquisition of a 50% stake in a 2,35 GWac portfolio of solar assets owned by Adani Energy Limited; and a 20% stake in the company itself. Total’s investment for it was around $2,5 billion.
This is the agreement that came into fruition today with Total’s announcement. Now, Total will have a seat on the Board of Directors of Adani Energy Limited.
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Adani Energy, a strategic partner for Total
The partnership with AGEL will further expand Total’s renewable energy portfolio; and strengthens the company’s objective to achieve 35 GW of gross production capacity from renewables, by 2025.
As we reported previously, Total has been active in such efforts, with the acquisition of Fornoche Biogaz; the partnership with Engie to develop France’s largest green hydrogen plant; and the planned $2 billion investment for renewables in 2021.
In this regard, Patrick Pouyanné, Chairman and CEO of Total, said: “This agreement is an important step in our alliance with the Adani Group in India and our common vision and goals with respect to the importance of access to low carbon energy in India.”
“Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties. Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas,” he concluded.
While Gautam Adani, chairman of Adani Group, added: “We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India. We look forward to working together towards delivering India’s vision for 450 GW renewable energy by 2030.”