Total boosts green energy commitment with Adani stake
French oil & gas company Total has deepened its commitment to green energy by acquiring a 20% stake in Indian energy company Adani Green Energy Limited (AGEL), a subsidiary of Adani, for a total of $2.5 billion (€2.06 billion).
The deal came at a 40% discount owing to Adani's market capitalisation, giving the French company a 50% stake in a 2.35GW solar energy portfolio and a seat on the company's board.
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It marks another step in the alliance between the two companies which covers investments in LNG terminals, gas utility business, and renewable assets across India.
The partnership first came to fruition in 2018 when both companies looked to cement an alliance to cement a gas retail network and terminals across the subcontinent.
Gautam Adani, the CEO of Adani Group has pledged to build AGEL into the world's largest solar company by 2025.
Adani's total renewable energy capacity currently sits at 14.6GW.
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.”
By the end of 2020, Total's gross power generation capacity worldwide was around 12GW, with over half consisting of renewable sources.
Total hopes the acquisition will help them expand their business to contain a total of 35GW of renewable energy by 2025.
Mr Adani said: “We are delighted to deepen our strategic alliance with TOTAL, a global energy major, and welcome them as a significant shareholder in Adani Green Energy Limited.
"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.”
India is well on its way to becoming a global energy superpower and many leading Western energy companies have been attempting to court favour in its growing market.
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India's prime minister has set ambitious targets for the nation to get 175GW of its energy from renewables by 2022.
Total recently left the American Petroleum Institute over concerns about its policy on climate change. The company is also looking to expand its solar and energy storage projects into the US.
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