Total to invest $300 mn in Adani Green Energy
French energy major’s stake will rise to 50% in Adani group co from 19.7%
image for illustrative purpose
Green Drive
♦ Total’s first public deal since Hindenburg report on Adani Group
♦ Total in 2019 invested $600 mn to buy 37.4% in Adani Gas Ltd
♦ Adani Energy targets 45GW RE capacity by 2030
New Delhi: Total Energies SE will invest $300 million in a new clean energy joint venture with the Adani Group, marking the French energy giant’s first public deal since a US short-seller had leveled fraud allegations against Gautam Adani’s business empire.
Total will hold a 50 per cent stake in the new joint venture firm, with Adani Green Energy Ltd holding the rest, the two firms said in a statement. The joint venture will hold a portfolio of 1,050 MW, including 300 MW of already operational capacity, 500 MW under construction and 250 MW under-development assets with a blend of solar and wind power.
The investment is part of Total’s drive to expand its portfolio of clean energy projects. Total already has a 19.7 per cent stake in Adani Green Energy Ltd (AGEL). It also has an equal joint venture with AGEL, called AGE23L that holds a portfolio of 2,353 MW. In a stock exchange filing, AGEL said its board has approved “the execution of a binding term-sheet to be entered into between Adani Green Energy Twenty Three Ltd (AGE23L) and TotalEnergies SE (Total) pursuant to which, inter alia, Total will make further investment (either directly or through its affiliates) of $ 300 million to form a new 50:50 joint venture company with the company and modify certain terms of its investment in AGE23L.”
Besides investing in the renewable energy business of Adani Group, Total in 2019 invested $ 600 million to buy a 37.4 per cent stake in Adani Gas Ltd, now called Adani Total Gas Ltd. The $ 300 million investment is the first since the Hindenburg report in January highlighted Adani Group’s debt pile and alleged accounting fraud and stock manipulation, which Adani denies. Shortly after that report, Total put a planned $ 4 billion in a green hydrogen project with the embattled group on hold, saying it was waiting for more clarity on the Indian conglomerate’s situation before proceeding. Total was to take a 25 per cent in Adani New Industries Ltd (ANIL). The status of Total’s investment in ANIL is not immediately known. TotalEnergies chairman and CEO Patrick Pouyanne commented:
