 "Totalenergies")
Totalenergies(Photo: Reuters)
French energy major TotalEnergies’ latest $444 million investment in a joint venture with Adani Green Energy has taken its total commitment to the Adani Group to $3.2 billion.
TotalEnergies continues to invest in Adani Green, calling it as a strategic move in the Indian electricity market. This is in contrast to its decision to pause a green hydrogen partnership with the group earlier.
“This new transaction will allow TotalEnergies to capitalise on the ongoing liberalisation of the Indian electricity market,” the company said in a press release on Tuesday.
It will invest $444 million for a 50 per cent stake in a joint venture with Adani Green, which will manage 1,150 megawatts (Mw) of solar assets.
TotalEnergies said in a statement: “The electricity generated by these solar projects will be sold through Power Purchase Agreements (PPAs) with the federal government agency, Solar Energy Corporation of India (SECI), and through sales on the wholesale market.”
In a separate announcement, Adani Green said it would contribute its existing assets to the joint venture, while TotalEnergies’ $444 million investment would accelerate project development in Gujarat. About $744 million of the total $3.2 billion was invested after the publication of the Hindenburg Research report on the Adani Group.
An email query sent to both companies remained unanswered till the time ofg going to press.
TotalEnergies’ continued investment in Adani Green contrasts with its decisions around green hydrogen with the Adani Group.
In June 2022, TotalEnergies announced an agreement with Adani Enterprises (AEL) to acquire a 25 per cent stake in Adani New Industries (ANIL), which was to be the exclusive platform for the production and commercialisation of green hydrogen in India.
However, this investment decision fell through shortly in 2023, with the publication of the Hindenburg Research report, which alleged financial irregularities at the group that the Adani conglomerate has refuted since.
In March 2023, TotalEnergies stated in a response to French media, “The agreement was not yet finalised. On February 8, 2023, TotalEnergies announced it was pausing the transaction until an independent review ordered by the Adani Group and an investigation by the Indian government released their findings. This was a logical decision of prudence.”
First Published: Sep 03 2024 | 6:59 PM IST