TotalEnergies and Adani Enterprises Limited (AEL) have reached a deal for TotalEnergies to buy a 25 percent stake in Adani New Industries Limited (ANIL).
ANIL will be AEL and TotalEnergies’ unique platform for the production and marketing of green hydrogen in India. As a first milestone, ANIL will aim to produce one million metric tons of green hydrogen per year (Mtpa) by 2030, supported by about 30 gigawatts (GW) of new renewable power generation capacity.
To control green hydrogen production costs, ANIL will be integrated along the entire value chain, from the manufacture of equipment required to generate renewable power and produce green hydrogen to the production of green hydrogen and its transformation into derivatives, such as nitrogenous fertilizers and methanol, for the domestic market and for export.
ANIL plans to create a project to produce 1.3 Mtpa of urea derived from green hydrogen for the Indian domestic market as a replacement for existing urea imports, and will invest approximately $5 billion in a 2 GW electrolyzer powered by renewable energy from a 4 GW solar and wind farm.
This cooperation is founded on the companies’ extraordinary complementarity. Adani’s portfolio will contribute its in-depth expertise of the Indian market, execution skills, and superior operations and capital management.
TotalEnergies’ in-depth knowledge of global markets, competence in renewable technology and large-scale industrial projects, and financial strength will enable ANIL to reduce its financing expenses. The combined strengths of the partners will assist ANIL in delivering the world’s largest green hydrogen ecosystem, which will result in the lowest consumer cost for green hydrogen.
The investment in ANIL represents another significant step in the strategic alliance between TotalEnergies and Adani Group, India’s premier energy and infrastructure platform, whose operations in India include LNG terminals, gas utility business, renewable power generation, and now green hydrogen production. It will accentuate the significant role that TotalEnergies and Adani want to play in the energy transition and in helping India decarbonize its mobility, industry, and agriculture, while also contributing to the nation’s energy independence.
Speaking as the deal was signed, Patrick Pouyanné, Chairman and CEO of TotalEnergies, said: “TotalEnergies’ entry into ANIL is a major milestone in implementing our low carbon hydrogen strategy, where we want not only to decarbonize the hydrogen used in our European refineries by 2030, but also to pioneer the mass production of green hydrogen to meet demand, as the market will take off by the end of this decade. We are also very pleased with this agreement, which further strengthens our alliance with the Adani Group in India and contributes to the valorization of India’s abundant low-cost renewable power potential. This future production capacity of 1 Mtpa of green hydrogen will be a major step in increasing TotalEnergies’ share of new decarbonized molecules – including biofuels, biogas, hydrogen, and e-fuels – to 25% of its energy production and sales by 2050.”
Adani Group Chairman Gautam Adani said: “The strategic value of the Adani-TotalEnergies relationship is immense at both the business level and the ambition level. 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.”
