Paris, June 14, 2022 – TotalEnergies has entered into an agreement with Adani Enterprises Limited (AEL) to acquire a 25% stake in Adani New Industries Limited (ANIL). ANIL will be the exclusive platform of AEL and TotalEnergies for the production and commercialization of green hydrogen on a large scale in India. ANIL aims, as a first milestone, to produce one million tonnes of green hydrogen per year (Mtpa) by 2030, based on new renewable electricity production capacities of around 30 gigawatts ( GW).
In order to control the production costs of green hydrogen, ANIL will be integrated throughout the value chain, from the manufacture of equipment necessary for the generation of renewable electricity and the production of green hydrogen, to the production of green hydrogen itself, as well as its transformation into by-products, in particular nitrogen fertilizers and methanol, both for the domestic market and for export. As a start, ANIL intends to develop a project to produce 1.3 Mtpa of green hydrogen-derived urea for the Indian domestic market, replacing current urea imports, and will invest around $5 billion in a 2 GW, powered by renewable energy from a 4 GW solar and wind farm.
This partnership is based on the remarkable complementarity of the two companies. Adani will bring to the partnership deep knowledge of the Indian market, execution capabilities, and excellence in operations and capital management. TotalEnergies will bring its in-depth knowledge of global markets, its expertise in renewable technologies and large-scale industrial projects, and its financial strength enabling ANIL to reduce its financing costs. The complementary strengths of the partners will help ANIL to establish the largest green hydrogen ecosystem in the world, allowing the consumer to benefit from the lowest cost for green hydrogen.
The investment in ANIL marks another key milestone in the strategic alliance between TotalEnergies and Adani Group – India’s largest private energy and infrastructure conglomerate – which covers investments in LNG terminals, distribution of gas, the production of renewable electricity and now the production of green hydrogen in India. It also reinforces the key role that TotalEnergies and Adani intend to play in the energy transition, and to help India decarbonize its transport, industry and agriculture, while contributing to the country’s energy independence.
On the occasion of the signature, Patrick Pouyanné, Chairman and CEO of TotalEnergies, declared:“Our stake in ANIL is a major step in the implementation of our low-carbon hydrogen strategy, which aims both to decarbonize all the hydrogen consumed by our European refineries by 2030, and to make TotalEnergies a pioneer in the mass production of green hydrogen in order to be able to meet demand, which will take off by the end of the decade. We are also very pleased with this agreement, which further strengthens our alliance with the Adani group in India, and contributes to the development of its abundant and inexpensive renewable energy potential. This future production capacity of one million tons of green hydrogen per year will significantly contribute to TotalEnergies’ ambition to bring new carbon-free molecules – biofuels, biogas, hydrogen, and e-fuels – to 25% of its production and of its energy sales by 2050.
Adani Group Chairman, Mr. Gautam Adani said:“The strategic value of the relationship between Adani and TotalEnergies is immense, both in terms of business and in terms of our common ambitions. In line with our ambition to become the largest player in green hydrogen in the world, this partnership with TotalEnergies adds several dimensions, including R&D, market knowledge, and understanding of the end consumer. This allows us to shape market demand. In my view, the continuous deepening of our partnership is of great value. Our confidence in our ability to produce the cheapest electron in the world drives us to want to produce the cheapest green hydrogen in the world. This partnership promises exciting opportunities in the downstream sector. »
In 2018, TotalEnergies and Adani embarked on an energy partnership, with the development of their joint LNG activities – from regasification terminals to the marketing of LNG – and an investment by TotalEnergies in Adani Total Gas Limited, a gas distributor. In 2020, the two partners further deepened their relationship through TotalEnergies’ acquisition of a 20% minority stake in Adani Green Energy Limited (AGEL), the largest solar developer in the world at the time, as well as only through the acquisition of a 50% stake in a portfolio of 2.35 GWac solar assets in operation1owned by AGEL, for a total investment of $2.5 billion.
1 Gigawatt alternative current (GWac)
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