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TotalEnergies to buy 25% stake in India’s Adani New Industries in green push
Global Banking & Finance Review®
Company
By Sudip Kar-Gupta and Nidhi Verma
PARIS/NEW DELHI (Reuters) – French energy major TotalEnergies will buy a 25% stake in Adani New Industries Ltd (ANIL), as part of a deal with Adani Enterprises Ltd to develop the world’s biggest green hydrogen ecosystem, the companies said on Tuesday.
India, the world’s third-biggest emitter of carbon dioxide, plans to produce 5 million tonnes of green hydrogen annually by 2030 to help become a net-zero carbon emitter by 2070.
ANIL aims to invest $50 billion over a decade in green hydrogen and associated ecosystem. In the initial phase, it plans to develop green hydrogen production capacity of one million tonnes per year by 2030.
India has announced incentive schemes and companies including Reliance Industries, Indian Oil Corp and Adani Group have pledged to invest billions of dollars to develop clean energy projects in India.
Green hydrogen, produced using renewable energy, has some of the best environmental credentials of the various shades of the clean-burning fuel.
Adani Group already has a tie up with TotalEnergies for building liquefied natural gas terminals, gas utilities and renewable energy business in India.
TotalEnergies, one of the world’s biggest oil and gas producers, has faced criticism from climate activists and has been moving into the renewable energy sector and diversifying away from hydrocarbon-centred activities in recent years.
“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. This partnership will open up a number of exciting downstream pathways,” billionaire Gautam Adani said.
Patrick Pouyanne, chief executive of TotalEnergies, said the entry into ANIL “is a major milestone in implementing our low-carbon hydrogen strategy.”
Apart from decarbonising hydrogen used in its European refineries by 2030, Pouyanne said the French energy major also plans to pioneer the mass production of green hydrogen as it expects that market to take off by the end of this decade.
(Reporting by Sudip Kar-Gupta; Editing by Tom Hogue, Sherry Jacob-Phillips and Shailesh Kuber)
Green hydrogen is hydrogen produced using renewable energy sources, such as wind or solar power, which helps reduce carbon emissions and is considered a clean alternative to traditional hydrogen production methods.
A stake in a company refers to the ownership interest or share that an individual or organization holds in that company, often represented as a percentage of total shares.
A net-zero carbon emitter is an entity that balances the amount of greenhouse gases emitted with an equivalent amount removed from the atmosphere, achieving a net-zero carbon footprint.
A partnership in business is a formal arrangement where two or more parties collaborate to manage and operate a business, sharing profits, losses, and responsibilities.
An investment ecosystem refers to the interconnected network of investors, companies, and financial institutions that work together to facilitate investment opportunities and drive economic growth.
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