Energy transition

TotalEnergies Agrees Green Hydrogen Deal With Indian Conglomerate Adani

TotalEnergies has purchased a 25% stake in India’s Adani New Industries Ltd., creating a partnership to produce and commercialize green hydrogen globally.

Adani New Industries aims to invest $50 billion over the next decade in green hydrogen and associated ecosystems.

TotalEnergies plans to produce and commercialize green hydrogen across India and beyond with its purchase of a 25% stake in Adani New Industries Ltd. (ANIL) from its parent, Adani Enterprises Ltd., part of the Adani Group, the largest energy and infrastructure conglomerate in the south Asian country.

ANIL aims to invest $50 billion over the next 10 years in green hydrogen and associated ecosystems. Initially, it will target production of 1 mtpa of green hydrogen by 2030, underpinned by around 30 GW of new renewable power generation capacity, TotalEnergies said in a news release.

The investment in ANIL builds on a longstanding strategic alliance between TotalEnergies and Adani Group whose operations across India include LNG terminals, gas utility business, renewable power generation, and now green hydrogen production.

To control costs of producing green hydrogen, ANIL will be integrated along the value chain, from the manufacturing of equipment needed to generate renewable power and produce green hydrogen, to the production of green hydrogen itself and its transformation into derivatives, including nitrogenous fertilizers and methanol, both for the domestic market and export.

Initially, ANIL plans to produce 1.3 mtpa of urea derived from green hydrogen for the Indian domestic market as a substitute for current imports. It also plans to invest $5 billion in a 2-GW electrolyzer fed by renewable power from a 4-GW solar and wind farm.

In 2019, TotalEnergies and Adani Group agreed to develop a joint LNG business – from regasification terminals to LNG marketing. TotalEnergies invested the same year in Adani Total Gas Ltd., a city gas distribution business.

In 2020, TotalEnergies acquired a 20% minority interest in Adani Green Energy Limited (AGEL), then said to be the largest solar developer in the world, along with a 50% stake in a 2.35 GWac1 portfolio of operating solar assets owned by AGEL, for cost of $2.5 billion.

TotalEnergies chairman and CEO Patrick Pouyanné, said the French company’s newest Adani partnership, with ANIL, will help it to meet targets to decarbonize the hydrogen used in its European refineries by 2030.

“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,” Pouyanné said.

Adani Group chairman Gautam Adani said TotalEnergies’ R&D capabilities, market reach and understanding of the consumer will help the Adani Group realize its ambition to become one of the largest green hydrogen players globally.