NEW DELHI: Indian energy major Adani Group and French oil and gas giant Total on Monday announced that they have inked a $2.5 billion deal under which the French company will receive a 20 per cent stake in Adani Green Energy— a renewable energy company.
The agreement will also see Total get two seats on Adani Green Energy’s (AGEL) Board of Directors. Going by projects, AGEL is already the world’s largest solar energy producer and Total is set to get a 50 per cent stake in AGEL’s massive 2.35 GW portfolio of operating solar assets. This is not the first such agreement signed between the Paris-based energy firm and the Adani Group. In 2018, Total had agreed to buy a 37.4 per cent stake in Adani Gas Ltd—the city gas distribution firm of the Adani Group—and a 50 per cent stake in Adani’s under-construction Dhamra LNG project in Odisha.
“Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties,” Total CEO and Chairman Patrick Pouyanne said, “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”. Total also said that the investment in AGEL is another step deepening the strategic alliance between Adani Group and the French firm.
AGEL currently has 14.6 GW of contracted capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development. The company wants to achieve a renewable energy capacity of 25 GW. Total, for its part, had a gross power generation capacity worldwide of 12 GW at the end of 2020, with a renewable energy capacity of close to seven GW. It plans to increase renewable capacity to 35 GW by 2025.
“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,” said Adani Group chairman Gautam Adani.