Billionaire Gautam Adani’s ambitious vision for a $50 billion green hydrogen project remains steadfast, signaling the determination of Adani’s company to forge ahead, regardless of its French partner, TotalEnergies SE.
The project’s resilience is coming to light as Adani Enterprises Ltd’s Chief Financial Officer, Robbie Singh, recently revealed that the venture will proceed, even in the absence of equity from TotalEnergies.
The green hydrogen endeavor faced a hurdle earlier this year when TotalEnergies suspended its investment due to allegations of fraud by US short-seller Hindenburg. Despite this setback, Adani Enterprises remains resolute in its commitment to advancing the project.
Singh affirmed that the project’s progress doesn’t hinge on TotalEnergies’ involvement and that the investment is moving forward regardless of the French energy company’s participation.
TotalEnergies’ initial plan was to acquire a 25 percent stake in Adani New Industries Ltd (ANIL), the subsidiary tasked with developing the green hydrogen project. However, the French energy company temporarily halted its planned $4 billion investment in February amidst ongoing allegations and investigations.
While the memorandum of understanding between ANIL and TotalEnergies is still valid, the French company is conducting due diligence before finalizing its investment decision.
Adani’s Green Hydrogen Ambitions
Adani’s vision extends beyond the current challenges, with ambitious plans to establish an expansive green hydrogen ecosystem in India. The initial phase of the project aims to produce 1 million tonnes of green hydrogen, with future plans to scale production to 3 million tonnes.
Green hydrogen, produced through electrolysis powered by renewable sources like solar energy, lies at the core of this endeavor. To ensure cost-effectiveness, Adani intends to desalinate seawater before utilizing it in the electrolysis process, thus reducing a significant portion of production expenses related to electricity costs.
Adani’s commitment to green hydrogen is paralleled by plans to expand its solar module manufacturing capabilities. The company intends to boost its solar module production at the Mundra SEZ in Gujarat, potentially reaching an annual capacity of up to 10 GW. This facility will contribute to various components essential for harnessing solar energy, including metallurgical grade silicon, polysilicon, ingots, wafers, cells, and modules.
Adani Group’s unwavering pursuit of a comprehensive green hydrogen ecosystem aligns with India’s broader renewable energy goals. As the world turns to sustainable energy solutions, Adani’s resilience in the face of challenges underscores its commitment to forging a greener future for India and the world.