Adani Group said on Tuesday that France energy supermajor TotalEnergies will acquire a 25 per cent minority interest from Adani Enterprises Limited (AEL) in Adani New Industries. The company said that the duo will together create the world’s largest green hydrogen ecosystem.
The partnership, centered on green hydrogen, is expected to transform the energy landscape both in India and globally, and further strengthen the ESG commitments made by both the companies, the company stated.
Adani New Industries aims to invest over $50 billion in the next 10 years in green hydrogen and associated ecosystem. In the initial phase, Adani New Industries will develop green hydrogen production capacity of 1 million tonne per annum before 2030.
Gautam Adani, Chairman, Adani Group said that the partnership is immense at both the business as well as the ambition level. “In our journey to become the largest green hydrogen player in the world, the partnership with TotalEnergies adds several dimensions that include R&D, market reach and an understanding of the end consumer. This fundamentally allows us to shape market demand. This is why I find the continued extension of our partnership to hold such great value. Our confidence in our ability to produce the world’s least expensive electron is what will drive our ability to produce the world’s least expensive green hydrogen.”
Patrick Pouyanné, Chairman and CEO of TotalEnergies said that the entrance of TotalEnergies in Adani New Industries is a major milestone in their renewable and low-carbon hydrogen strategy. They plan to decarbonise the hydrogen used in their European refineries by 2030, as well as pioneer mass production of green hydrogen to meet the demand. “We are also very pleased with this agreement, which further strengthens our alliance with the Adani Group in India and contributes to the valorisation of India’s abundant low-cost renewable power potential. This future production capacity of 1 million ton per annum of green hydrogen 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.”
The company stated that Adani will bring its deep knowledge of the Indian market, rapid execution capabilities, operations excellence and capital management philosophy to the partnership, while TotalEnergies will bring its deep understanding of the global and European market, credit enhancement and financial strength to lower the financing costs, and expertise in underlying technologies.
With this strategy, Adani New Industries will be able to deliver the largest green ecosystem in the world that will deliver the lowest cost for green hydrogen and assist in its adoption.
Adani New Industries aims to be the largest fully integrated green hydrogen player in the world with presence across the entire value chain. The partnership between the Adani portfolio and TotalEnergies covers LNG terminals, gas utility business, renewables business and green hydrogen production.
TotalEnergies is a global multi-energy company that produces and markets energies including oil and biofuels, natural gas and green gases, renewables and electricity. It is active in more than 130 countries.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today