New Delhi: French oil and energy group ‘Total’ has agreed to a USD 2.5 billion deal that includes buying a 20 per cent minority stake in Adani Green Energy Ltd (AGEL) from Adani Group, as it builds up its presence in the renewable energy sector. The deal involves Paris-based energy group ‘Total’ getting a board seat in the largest solar energy developer in the world, as well as a 50 per cent stake in a 2.35 gigawatts (GW) portfolio of operating solar assets, the two firms said in statements.
Total had in 2018, agreed to buy a 37.4 per cent stake in Adani Gas Ltd – the city gas distribution firm of the Adani Group, and a 50 per cent stake in the billionaire Gautam Adani-run ports-to-energy conglomerate’s under-construction ‘Dhamra LNG’ project in Odisha.
In the statement, the French giant said the acquisition of a 20 per cent minority interest in Adani Green Energy Limited (AGEL) from Adani Group ‘marks the deepening partnership between the Adani Group – India’s leading infrastructure platform – and ‘Total’, in the transition and green energy fields in India’.
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‘Total’ is aiming to reduce its dependence on oil and is shifting towards electricity and renewable energy. It is targeting to have 35 gigawatts (GW) of gross renewable energy generation capacity by 2025, from around 7 GW now. It wants to add 10 GW per year afterward. AGEL is targeting 25 GW of renewable capacity by the same year.
As on date, AGEL has over 14.6 GW of contracted capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development.
Adani Group chairman Gautam Adani had last year signaled room for promoters to dilute their stake in AGEL saying global energy producers, including ‘Total’, were interested in investing to expand their renewable portfolios.
“Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties,’ ‘Total’ CEO and chairman Patrick Pouyanne said.
‘Total’ said the investment in AGEL is another step in the strategic alliance between Adani Group and the French firm, which covers investments in LNG terminals, gas utility business, and renewable assets across India.
“This is in line with the commitment of both Adani and ‘Total’ to be leading participants in the sustainable economy of the future and help India in its quest for the development of renewable energy,” the statement said.