France-based Total will acquire 20% minority interest in Adani Green Energy Ltd (AGEL).
The investment in AGEL is another step in the strategic alliance between both the groups across various businesses and companies of the Adani Group, covering investments in liquefied natural gas (LNG) terminals, gas utility business, and renewable assets across India.
In 2018, Total and Adani embarked on the energy partnership with investment by french oil major in Adani Gas Ltd’s city gas distribution business, associated LNG terminal business, and gas marketing business.
They acquired 37.4% stake in Adani Gas Ltd and 50% stake in Dhamra LNG project. It was agreed that both the companies will continue this alliance into the wider sustainable energy space.
Total and Adani agreed to the acquisition of a 50% stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL and a 20% stake in AGEL for a global investment of $2.5 billion.
Total’s entry into AGEL is a major milestone in its strategy regarding the renewable energy business in India put in place by both companies, which began with the first joint venture of 2.3 GW of renewable capacity.
As part of its ambition to get to net zero by 2050, Total is building a portfolio of activities in renewables and electricity that could account for up to 40% of its sales by 2050.
At the end of 2020 their gross power generation capacity worldwide was around 12 GW, including close to 7 GW of renewable energy.
Reference- Total Online Newsroom, MoneyControl, Business Standard