Total in $2.5 billion deal to buy 20% in Adani green arm, 50% of 2 GW operating solar projects

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NEW DELHI: French oil and gas major Total SE is to acquire a 20% stake in Adani Green Energy Ltd (AGEL), the renewables arm of the Ahmedabad-based diversified Adani group, and 50% ownership of the company’s operating solar projects with aggregate capacity of over 2 GW (gigawatts) for $2.5 billion.
Total will acquire the 20% stake from the promoter group’s 74.92% holding in AEGL, the Adani group said in a statement on Monday.
This is Total’s third with the Adani group and indicates the French major is betting big on India’s energy transition based on, as Total CEO Patrick Pouyanne said, “the pillars of renewable energy and natural gas”.
The AEGL stock closed at Rs 953.45 on the Bombay Stock Exchange on Monday, up from its previous close of Rs 947.55, after dipping to Rs 921 intra-day.
Total had in February 2020 struck a deal with AEGL to acquire a 50% stake for $510 million in a new joint venture company they formed. The deal entailed AGEL transferring its operating solar assets with a total capacity of 2,148 MW to the joint venture. AEGL was to retain the remaining 50% ownership in the joint venture.
Total began its relationship with the Adani group in 2018 by investing in Adani Gas Ltd, the group’s subsidiary for city gas distribution, LNG (liquefied natural gas) and gas marketing businesses.
“This agreement (with AGEL) is an important step in our alliance with the Adani Group and our common vision and goals with respect to the importance of access to low carbon energy in India. 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,” the statement quoted Pouyanne as saying.
“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 renewable energy capacity by 2030,” the statement quoted Adani group chairman Gautam Adani as saying.
AGEL debuted in 2015 with a 648 MW solar project, the world’s largest single-location unit, at Kamuthi in Tamil Nadu. It has over 14.6 GW of contracted renewable capacity, with 3 GW in operation, another 3 GW under construction and 8.6 GW under development. The company aims to achieve 25 GW of renewable power generation by 2025.
India has set its sight on attaining 450 GW renewable energy capacity by 2030 and racing to meet the target of 175 GW by 2022. It also aims at raising the share of natural gas in the energy basket from 6.2% to 15% by 2030. Both are key elements of the government’s blueprint for reducing the economy’s carbon footprint in line with the country’s climate commitment.

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