French oil and gas major, Total announced that it has acquired 20 percent minority interest in Adani Green Energy Limited (AGEL) from the Adani Group.
The latest acquisition is in line with both Total and Adani’s commitment to the development of renewable energy in India.
“This agreement is an important step in our alliance with the Adani Group in India and our common vision and goals with respect to the importance of access to low carbon energy in India,” said Patrick Pouyanné, Chairman and CEO of Total. “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.”
The latest partnership with AGEL in the renewables space in India is intended to be a key contributor to Total’s objective of reaching 35 GW of gross production capacity from renewable sources by 2025 and adding 10 GW per year afterward.
Total and Adani began their energy partnership back in 2018, with investment by Total in Adani Gas Ltd, city gas distribution business, associated LNG terminal business, and gas marketing business. At the time of the partnership, it was agreed that both the parties will continue their alliance into the wider energy space.
Total and Adani agreed on the acquisition of a 50 percent stake in a 2.35 GW portfolio of operating solar assets owned by AGEL and a 20 percent stake in AGEL for a global investment of USD 2.5 billion. Along with the 20 percent minority interest in AGEL, Total will have a seat on the Board of Directors of the company.
“We [Total and AGEL] have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India,” said Gautam Adani, Chairman of the Adani Group, commenting on the strategic alliance. “We look forward to working together towards delivering India’s vision for 450 GW renewable energy by 2030.”