Total to invest $300mn to form joint venture with Adani Green

France’s TotalEnergies will ramp up its investments in Adani Group’s energy business. It will pour in $300 million to form a 50:50 joint venture with Adani Green Energy to generate solar and wind power.
The fresh investment follows Total’s suspension of a 25% stake-purchase in Adani New Industries’ green hydrogen project over allegations by Hindenburg, which the group has denied.
Adani Green, in which Total already owns 19.75%, will transfer certain renewable assets to its subsidiary Adani Green Energy Twenty Three, where the French major will contribute $300 million for a 50% equity.
Adani Green said its board has approved execution of a binding term sheet with Total for a JV and to modify certain terms of investment in Adani Green Twenty Three. Adani Green, which has a portfolio of 30 gigawatt of renewable energy, will transfer 10 gigawatt to Adani Green Twenty Three. The 10 gigawatt of solar and wind power will be a blend of operational (300 mega watt), under construction (500 megawatt) and planned (250 megawatt) assets.
This is part of Adani Green’s asset recycling strategy, a source said. Adani Green Twenty Three’s portfolio will mirror that of its parent Adani Green, but it will be small in size. The source said: “The difference between Total’s investment in Adani Green and Adani Green Twenty Three is that the former is more of a growth investment, while the French major’s additional investment in Adani Green Twenty Three is more of an operational investment.”
Adani Green Twenty Three is a JV which gives Total direct access to ownership of the assets contributed by Adani Green, said a TotalEnergies spokesperson.