MUMBAI: Adani and France’s Total Energies have inked a partnership to jointly create the world’s largest green hydrogen ecosystem, making this the fourth such investment by the French major in Adani Group.
The partnership involves TotalEnergies acquiring 25% minority interest in Adani New Industries Ltd (ANIL) from Adani Enterprises Ltd (AEL).
Centred on green hydrogen, the partnership would compete with Reliance Industries, whose CMD Mukesh Ambani in 2021 pledged to invest Rs 75,000 crore in green energy initiatives over three years. ANIL’s ambition is to invest over $50 billion over the next 10 years in green hydrogen and associated ecosystems. Shares of Adani Enterprises, the flagship entity of the Adani Group, closed up nearly 6% at Rs 2,196.45 apiece on the news.
With this investment in ANIL, the alliance between the Adani Portfolio and TotalEnergies now covers LNG terminals, gas utility business, renewables business and green hydrogen production. In the initial phase, ANIL will develop a green hydrogen capacity of 1 million tonnes (MT) per annum before 2030. “The strategic value of the Adani-TotalEnergies relationship is immense at both the business level and the ambition level,” said Gautam Adani, chairman, of Adani Group.
“In our journey to become the largest green hydrogen player in the world, the partnership adds several dimensions that include R&D, market reach and an understanding of the end consumer.” “This future capacity of 1 MT per annum will be a major step in increasing TotalEnergies’ share of new decarbonised molecules including biofuels, biogas, hydrogen, and e-fuels to 25% of its energy production and sales by 2050,” said Patrick Pouyanné, chairman and CEO of TotalEnergies.
ANIL aims to be the largest integrated green hydrogen player in the world, with a presence across the entire value chain, from the manufacturing of renewables and green hydrogen equipment (solar panels, wind turbines, electrolysers, etc.), to large-scale generation of green hydrogen, to downstream facilities producing green hydrogen derivatives.