TotalEnergies SE in Talks with Adani Group for Renewable Energy Investments

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TotalEnergies SE in Talks with Adani Group for Renewable Energy Investments
16 Sep 2023
5 min read

News Synopsis

French oil giant TotalEnergies SE is actively exploring the possibility of investing in several renewable energy projects under Adani Green Energy Ltd (AGEL). This marks TotalEnergies' first foray into the Adani conglomerate since the Hindenburg report was released.

Expanding Clean Energy Portfolios

TotalEnergies' interest in acquiring stakes in specific renewable energy projects is part of its broader strategy to expand its clean energy portfolio. The company is eager to increase its involvement in the renewable energy sector and reduce its carbon footprint.

Temporary Suspension of Green Hydrogen Projects

TotalEnergies had previously announced plans to develop around $5 billion worth of green hydrogen projects in collaboration with Adani Enterprises. However, these plans were temporarily put on hold following the release of the Hindenburg report, which raised concerns about certain aspects of Adani's operations.

Potential Investment Amount

Reports suggest that TotalEnergies is considering a cumulative investment of $700 million in these renewable energy projects. This substantial investment underscores TotalEnergies' commitment to clean energy and signifies a significant step in the partnership between TotalEnergies and the Adani group.

Equal Partnership in Adani Total Gas

TotalEnergies and the Adani group share an equal venture in Adani Total Gas, where the Adani family and other promoter firms collectively hold a 37.40 percent stake. This partnership has laid the foundation for their collaboration in various energy-related ventures.

Venturing into Electric Vehicle Charging

Adani TotalEnergies E-Mobility Ltd (ATEL), a subsidiary of Adani Total Gas, recently announced plans to establish a comprehensive electric vehicle (EV) charging infrastructure. This infrastructure will cater to both individual consumers (B2C) and businesses (B2B) and will feature a hub comprising 200 charging points in New Delhi.

Previous Investments in AGEL

In 2021, TotalEnergies made significant investments in AGEL, which marked its initial entry into the renewable energy sector in collaboration with the Adani group.

These investments included the acquisition of a 50 percent stake in a 2.35GW portfolio of operational solar assets owned by AGEL and a 20 percent stake in AGEL for $2.5 billion.

AGEL's Ambitious Renewable Energy Goals

AGEL has set ambitious targets for renewable energy capacity, aiming to achieve 45GW by 2030. This aligns with India's growing emphasis on renewable energy sources and the transition toward a sustainable energy ecosystem.

Market Response to the Investment Talks

Following reports of TotalEnergies' interest in AGEL's renewable energy projects, shares of AGEL witnessed a positive response in the market. On Friday, AGEL's stock recorded gains of 2.28 percent, closing at Rs 1,006.20. The company's market capitalization currently stands at Rs 1.59 lakh crore, reflecting investor optimism regarding potential investments in clean energy.

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