Ahmedabad:
Adani, India’s fastest-growing diversified business portfolio,
and energy super major TotalEnergies of France, have entered into a new partnership
to jointly create the world’s largest green hydrogen ecosystem. In this strategic alliance,
TotalEnergies will acquire 25% minority interest in Adani New Industries Ltd (ANIL) from
Adani Enterprises Ltd (AEL).
The new partnership, centered on green hydrogen, is expected to transform the energy
landscape both in India and globally. Both Adani and TotalEnergies are pioneers in
energy transition and clean energy adoption, and this joint energy platform further
strengthens the public ESG commitments made by both companies.
ANIL’s ambition is to invest over USD 50 billion over the next 10 years in green hydrogen
and associated ecosystem. In the initial phase, ANIL will develop green hydrogen
production capacity of 1 million ton per annum before 2030.
“The strategic value of the Adani-TotalEnergies relationship is immense at both the
business level and the ambition level,” said
Gautam Adani, Chairman, 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, 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.”
“TotalEnergies’ entry into ANIL is a major milestone in implementing our renewable and
low carbon hydrogen strategy, where we want to not only decarbonize the hydrogen
used in our European refineries by 2030, but also pioneer the mass production of green
hydrogen to meet demand, as the market will take off by the end of this decade.” said
Patrick Pouyanné, Chairman and CEO of TotalEnergies
.
“We are also very pleased
with this agreement, which further strengthens our alliance with the Adani Group in
India and contributes to the valorisation of India’s abundant low-cost renewable power
potential. This future production capacity of 1 million ton per annum of green hydrogen
will be a major step in increasing TotalEnergies’ share of new decarbonised molecules
including biofuels, biogas, hydrogen, and e-fuels to 25% of its energy production and
sales by 2050.”
This partnership builds on the exceptional synergies between the two platforms. While
Adani will bring its deep knowledge of the Indian market, rapid execution capabilities,
operations excellence and capital management philosophy to the partnership,
TotalEnergies will bring its deep understanding of the global and European market,
credit enhancement and financial strength to lower the financing costs, and expertise
in underlying technologies. The complementary strengths of the partners will help ANIL
deliver the largest green hydrogen ecosystem in the world, which, in turn, will deliver
the lowest cost of Green Hydrogen to the consumer and help accelerate the global
energy transition.
ANIL aims to be the largest fully integrated green hydrogen player in the world, with
presence across the entire value chain, from the manufacturing of renewables and
green hydrogen equipment (solar panels, wind turbines, electrolysers, etc.), to large
scale generation of green hydrogen, to downstream facilities producing green
hydrogen derivatives.
With this investment in ANIL, the strategic alliance between the Adani Portfolio and
TotalEnergies now covers LNG terminals, the gas utility business, renewables business
and green hydrogen production. The partnership helps India in its quest to build the
fundamental pillars of economic sustainability by driving decarbonisation of industry,
power generation, mobility, and agriculture thereby mitigating climate change, and
ensuring energy independence.
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