TotalEnergies buys 25% of India's Adani New Industries
SUMMARY
Adani New Industries, a unit of Adani Enterprises, will target production of 1mn metric tons/year of green hydrogen by 2030.
By Shardul SharmaPOSTED IN:
TotalEnergies has signed an agreement to acquire a 25% stake in Adani New Industries (Anil), a unit of India’s Adani Enterprises (AEL), the company said on June 14. Anil will be the exclusive platform of AEL and TotalEnergies for the production and commercialisation of green hydrogen in India.
Anil will target production of 1mn metric tons/year of green hydrogen by 2030, underpinned by around 30 GW of new renewable power generation capacity, as its first milestone.
In order to control green hydrogen production costs, TotalEnergies said, 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 1.3mn mt/yr of urea derived from green hydrogen for the Indian domestic market, as a substitution for current urea imports and will invest around $5bn in a 2 GW electrolyser fed by renewable power from a 4 GW solar and wind farm.
“The investment in Anil marks another major step in the strategic alliance between TotalEnergies and Adani Group – India’s leading energy and infrastructure platform – whose operations across India include LNG terminals, gas utility business, renewable power generation, and now green hydrogen production,” TotalEnegies said.
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 investment by TotalEnergies in Adani Total Gas, a city gas distribution business.
In 2020, TotalEnergies and Adani Group deepened their relationship with the acquisition by TotalEnergies of a 20% minority interest in Adani Green Energy, then the largest solar developer in the world, along with a 50% stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL, for a total investment of $2.5bn.
