TotalEnergies has entered into an agreement with Adani Enterprises Limited (AEL) to acquire a 25 per cent interest in Adani New Industries Limited (ANIL), the exclusive platform of AEL and TotalEnergies for the production and commercialisation of green hydrogen in India.
ANIL will target a production of one million metric tonnes of green hydrogen per year (Mtpa) by 2030, underpinned by around 30 gigawatts (GW) of new renewable power generation capacity, as its first milestone.
In order to control green hydrogen production costs, ANIL will be integrated along the value chain, from the manufacturing of equipment needed to generate renewable power and produce green hydrogen, to the production of green hydrogen itself and its transformation into derivatives, including nitrogenous fertilisers and methanol, both for the domestic market and export.
To start with, ANIL intends to develop a project to produce 1.3 Mtpa of urea derived from green hydrogen for the Indian domestic market, as a substitution to current urea imports, and will invest around $5 billion in a 2 GW electrolyser fed by renewable power from a 4 GW solar and wind farm.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said it is a major milestone in the company’s goal to decarbonise the hydrogen used in our European refineries by 2030, but to also to pioneer the mass production of green hydrogen to meet demand.
“This future production capacity of 1 Mtpa 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 per cent of its energy production and sales by 2050.”
Adani Group Chairman Gautam Adani said it has the ambition is to become the largest green hydrogen player in the world, and the partnership with TotalEnergies adds several dimensions that include R&D, market reach and an understanding of the end consumer.
“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.”
In 2018, TotalEnergies and Adani Group embarked on an energy partnership with the development of a joint LNG business – from regas terminals to LNG marketing – and an investment by TotalEnergies in Adani Total Gas Limited, a city gas distribution business.
In 2020, TotalEnergies and Adani Group deepened their relationship with the acquisition by TotalEnergies of a 20 per cent minority interest in Adani Green Energy Limited (AGEL), then the largest solar developer in the world, along with a 50per cent stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL, for a total investment of $2.5 billion.