Business News: Total will acqiure 20% stake in Adani Green Energy.
By strengthening its strategic alliance in India’s sustainable energy space, French energy company Total proposes to acquire a 20% minority stake in Adani Green Energy Ltd. (AGEL). The operation will conclude with the acquisition of Total shares held by the Adani Promoter Group in AGEL. The transaction marks the deepening of the partnership between the Adani Group and Total – in the transition and green energy sectors in India.
The investment in AGEL is another step in the strategic alliance between Adani Group and Total, through various activities and companies of the Adani Group, which covers investments in LNG terminals, gas distribution services activities and renewable resources throughout the India.
In 2018, Total and Adani entered into the energy partnership with Total’s investments in Adani Gas Limited, city gas distribution business, associated LNG terminal business and gas marketing business. Total acquired a 37.4% stake in Adani Gas Limited and a 50% stake in the Dhamra LNG project. During the development of this partnership, it was also agreed that Total and Adani will continue this alliance in the wider space of sustainable energy.
Total and Adani have agreed to acquire a 50% stake in a 2.35 GW portfolio of operating solar assets owned by AGEL and a 20% stake in AGEL for a global investment of $ 2.5 billion. India has set a political target to create 450 GW of renewable energy capacity by 2030. In this context, Adani Group and Total have joined forces to develop affordable green energy sources and to provide transformational energy solutions.
AGEL started in 2015 with the largest single-site solar energy project in the world located in Kamuthi, Tamil Nadu (648 MW), which has come a long way to be ranked as the number one in power generation asset development global solar system from Mercom Capital. To date, AGEL has over 14.6 GW of contract renewable capacity, with an operating capacity of 3 GW and an additional 3 GW under construction and 8.6 GW under development. The company aims to achieve 25 GW of renewable energy generation by 2025.
Speaking on the occasion, the president of the Adani group, Gautam Adani, said: “We are delighted to deepen our strategic alliance with Total, a major global energy company, and welcome them as a significant shareholder of Adani Green Energy. Limited. We have a shared vision of developing affordable renewable energy to enable sustainable energy transformation in India. We look forward to working together to realize India’s vision of 450 GW of renewable energy by 2030 “.
Speaking on the occasion, Total CEO Patrick Pouyanne said: “This agreement is an important step in our alliance with the Adani Group in India and in our common vision and goals regarding the importance of accessing energy to low carbon emissions in India. Our entry into AGEL is a milestone in our renewable energy strategy in India by both sides, which began with our first 2.3GW renewable capacity joint venture. Given the size of the market, India is the right place to put in place / implement our energy transition strategy based on two pillars: renewable energy and natural gas. “
The Adani Promoter Group was represented by Clifford Chance and Cyril Amarchand Mangaldas. The total was represented by Latham & Watkins and AZB Partners.