TOTAL France to acquire 20% stake in Adani Green Energy for $2.5 bn

As part of the current deal, TOTAL will pick up a 50 per cent stake in a 2.35 GW portfolio of operating solar assets owned by AGEL and a 20 per cent stake in AGEL for a global investment of $2.5 bn

Global energy major Total will pick up a 20 per cent stake in Adani Green Energy Ltd (AGEL), the renewable power company of the Adani group, by way of acquiring shares held by the promoter group.

Along with the minority stake, the French firm will acquire 50 per cent in a 2.35-gigawatt portfolio of operating solar assets owned by AGEL in a deal worth $2.5 billion (about Rs 18,000 crore), said a statement by AGEL. Total will also have a seat on the AGEL board.

This is the third partnership between Total and the Adani group. In 2019, Total had acquired 37.4 per cent in Adani Gas and 50 per cent in the group’s Dhamra LNG project. The JV entailed developing various regasification terminals, including Dhamra LNG, and a retail network of 1,500 service stations over a period of 10 years. 

Last year, Total and AGEL created a 50-50 joint venture at an enterprise value of Rs 17,385 crore, to which AGEL would transfer its operational solar assets. The total operating renewable portfolio under the JV stands at 2.3 GW.

Patrick Pouyanné, Total SE CEO, said, “Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties, which began with our first joint venture of 2.3 GW of renewable capacity. Given the size of the market, India is the right place to put into action/to deploy our energy transition strategy based on two pillars: renewables and natural gas.”

In a statement, Gautam Adani, chairman of the Adani group, said, “We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India. We look forward to working together towards delivering India’s vision for 450 GW of renewable energy by 2030.” 

AGEL has over 14.6 GW of contracted renewable capacity, with an operating capacity of 3 GW, another 3 GW under construction, and 8.6 GW under development. The company aims to achieve 25 GW of renewable power generation by 2025.