TotalEnergies SE (Total) is investing $300 million in a new clean energy joint venture with the Adani group — the first deal by the French giant in the domestic conglomerate since the Hindenburg report.
Total will hold a 50 per cent stake in the new joint venture, with Adani Green Energy Ltd (AGEL) holding the rest.
It will house a portfolio of 1,050 megawatts (mw) — 300mw of operational capacity, 500mw under-construction projects and 250mw under-development assets, across solar and wind power.
Total said the transaction will reinforce its strategic alliance with AGEL and support the latter in achieving a target of 45 giga watts (gw) renewable power capacity by 2030.
After the Hindenburg allegations, Total had put a $4 billion green hydrogen joint venture with the Adanis on hold.
In 2021, the French giant acquired a minority interest of nearly 20 per cent in AGEL. They also have another equal stake venture, Adani Total Gas, where the Adani family and other promoter firms hold 37.40 per cent and TotalEnergies Holding SAS, a similar stake.
AGEL said in a regulatory filing that its board has approved “the execution of a binding term-sheet to be entered into between Adani Green Energy Twenty Three Ltd (AGE23L) and TotalEnergies SE (Total) under which, among other things, Total will make further investment (either directly or through its affiliates) of $300 million to form a new 50:50 joint venture with the company and modify certain terms of its investment in AGE23L (an arm of Adani Green Energy)”.
The announcement led to the shares of AGEL ending with marginal gains on the bourses on a day the benchmark index slumped almost 800 points.
It finished at Rs 1,012.50, marking a gain of 0.79 per cent over the last close.