French giant Total Energies and Indian billionaire industrialist Gautam Adani’s conglomerate plan to invest USD 5 billion to produce green hydrogen and related products in India as the world’s third-largest emitter of carbon seeking to decarbonize.
Total Energies has entered into an agreement with Adani Enterprises Limited to buy a 25 percent stake in Adani New Industries Ltd for an undisclosed amount, according to an exchange filing from the company earlier this week. Adani New Industries (ANIL) is a closely-held company of Adani Enterprises, the flagship firm for the coal-to-ports conglomerate.
The company was incorporated earlier this year in January, with the intention of piloting the new energy and low-carbon ventures for the group.
Earlier this year, in a regulatory filing, the company stated that it would develop and operate projects for the synthesis of low-carbon fuels and chemicals. It also said that it would undertake the generation of low-carbon electricity, and additionally manufacture important components for projects related to the manufacture of green hydrogen and wind turbines.
In a recent announcement, ANIL was quoted saying that it aims to be the largest fully integrated green hydrogen producer in the world from the manufacturing of renewables and green hydrogen equipment (solar panels, wind turbines, electrolysers, etc.), to the large-scale generation of green hydrogen, and green hydrogen derivatives with its existence across the entire value chain.
Gautam Adani, Chairman of the India-based Group stated that he is confident that the company will eventually produce the world’s least expensive green hydrogen. On its journey to become the largest green hydrogen producer in the world, the partnership with Total Energies will add several dimensions that include R&D, market reach and an understanding of the end consumer.
Adani was further quoted as saying that the partnership with Total will open up new avenues for exploration.
Adani aims to become the largest green hydrogen producer in the world
Gautam Adani announced that the company is seeking global investors and has committed to spend as much as USD70 billion (Rs 5.46 trillion) by 2030 across the green-energy value chain. Green hydrogen projects will also help India the world’s third-largest carbon-emitting country to slash its reliance on oil and coal as it chases a target of being zero carbon by 2070.
As the shareholders are demanding greater efforts to fight climate change, Total is enhancing clean-energy output while reigning in oil-product sales.
Total has previously joined hands with Adani to invest in natural gas and renewables in India, where the government this year unveiled plans and incentives for massive hydrogen growth. In 2019, Total acquired a 37.4 percent stake in Adani Gas Ltd. (now called Adani Total Gas Ltd.) and last year spent USD2.5 billion acquiring 20 percent of Adani Green Energy Ltd. along with a 50 percent stake in a portfolio of solar assets.
The partnership will provide a potential avenue to decarbonize heavy industries like cement production, fertilizers and steelmaking. India aims to produce 5 million tons of green hydrogen annually, although the fuel is yet to be proven as a commercially viable alternative.
Other major producers include Australian billionaire Andrew Forrest’s Fortescue Future Industries, which is targeting an initial output of 15 million tons of green hydrogen per year by 2030 from a network of global projects. Vestas Wind Systems A/S, InterContinental Energy and other partners in the industry intend to produce about 1.8 million tons of the fuel every year and to begin exports by 2027 from the Asian Renewable Energy Hub in Western Australia.