Adani Group & Total Energies to jointly create world’s largest green hydrogen ecosystem

|HT|

Indian business conglomerate Adani Group and French energy behemoth TotalEnergies have entered into an agreement to jointly create the world’s largest green hydrogen ecosystem primarily in Gujarat’s Kutch, the companies announced in a joint statement on Tuesday. As part of this strategic tie-up, TotalEnergies will acquire a 25% minority stake in Adani New Industries Ltd (ANIL) from Adani Enterprises Ltd (AEL), according to an official statement by the Indian company.

ANIL has proposed to invest more than $50 billion over the next 10 years in green hydrogen and its associated ecosystems, and in the initial phase, the company will develop green hydrogen production capacity of 1 million tonne every year before 2030.

“The strategic value of the Adani-TotalEnergies relationship is immense at both the business and ambition levels,” said Gautam Adani, chairman of Adani Group.

“In our journey to become the largest green hydrogen player in the world, the partnership with TotalEnergies adds several dimensions that include R&D (research and development), market reach and an understanding of the end consumer. This fundamentally allows us to shape market demand. This is why I find the continued extension of our partnership to hold such great value. 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,” Adani said in a statement. The valuation of the deal and other financial details have not been disclosed yet.

“TotalEnergies’ entry into ANIL is a major milestone in implementing our renewable and low carbon hydrogen strategy, where we want to not only decarbonise the hydrogen used in our European refineries by 2030, but also pioneer the mass production of green hydrogen to meet the demand, as the market will take off by the end of this decade.” said Patrick Pouyanné, chairman and CEO of TotalEnergies.

While Adani is expected to bring into the partnership its understanding of the Indian market, rapid execution capabilities, operations excellence and capital management philosophy to the partnership, TotalEnergies will bring to the table its knowledge of the global market, credit enhancement and financial strength to lower financing costs, and its expertise in underlying technologies.

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