Total has announced the acquisition of a 20 per cent minority interest in Adani Green Energy Limited (AGEL) from Adani Group.
The transaction marks the deepening partnership between the Adani Group and Total, in the transition and green energy fields in India.
The investment in AGEL is another step in the strategic alliance between Adani Group and Total, which covers investments in liquefied natural gas (LNG) terminals, gas utility business, and renewable assets across India.
Total said the investment is in line with the commitment of both Adani and Total to be leading participants in the sustainable economy of the future and help India in its quest for the development of renewable energy.
In 2018, Total and Adani embarked on the energy partnership with investment by Total in Adani Gas Limited, city gas distribution business, associated LNG terminal business and gas marketing business.
During the development of this partnership, it was further agreed that Total and Adani shall continue this alliance into the wider renewable energy space.
Total and Adani agreed to the acquisition of a 50 per cent stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL and a 20 per cent stake in AGEL for a global investment of USD 2.5 billion. Along with this 20 per cent minority interest in AGEL, Total will have a seat on the Board of Directors of the company.
AGEL started in 2015 with the world’s largest single-location solar power project located in Kamuthi, Tamil Nadu (648 MW) and has come a long way to be the number one global solar power generation asset.
To date, AGEL has over 14.6 GW of contracted renewable capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development. The company aims to achieve 25 GW of renewable power generation by 2025.
The partnership with AGEL in the renewables space in India will be a key contributor to Total’s objective of reaching 35 GWp of gross production capacity from renewable sources by 2025 and adding 10 GWp per year afterwards.
Patrick Pouyanné, Chairman and CEO of Total, commented the entry into AGEL is a major milestone in the company’s 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,” Mr Pouyanné said.
Adani Group Chairman, Mr. Gautam Adani, added the companies 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.”