Total to invest US$300mil in Adani’s green projects

NEW DELHI: TotalEnergies SE plans to invest US$300mil in a joint venture with Adani Green Energy Ltd, marking the first public deal between the French oil giant and Gautam Adani since a short-seller levelled fraud allegations against the Indian billionaire’s business empire.

Total will hold 50% stake in the new firm, with Adani Green holding the rest, according to an exchange filing yesterday. This investment is part of the companies’ drive to expand their portfolio of clean-energy projects.

Bloomberg reported the investment plans last week citing people familiar with the developments.

The deal increases Total’s presence in India’s fast-growing energy market, while giving Adani Green more means to develop new renewable energy projects. It would also see Total deepen its ties with Adani Green, which it’s already the second-largest shareholder of with a 19.75% stake, according to data compiled by Bloomberg.

The latest announcement also shows the conglomerate’s growing ability to attract global investments again.

After Hindenburg Research accused the Adani Group of “brazen” market manipulation and accounting fraud earlier this year, Total put on hold a plan to develop about US$5bil of green-hydrogen projects with Adani Enterprises Ltd. The Adani Group strongly denied the allegations by the short-seller.

TotalEnergies said in a statement that the transaction “will reinforce its strategic alliance” with Adani Green and “support the company in becoming the Indian leader of renewable energy, with a target of 45GW renewable power capacity by 2030”.

The new joint-venture company will house a 1,050-megawatt portfolio consisting of solar and wind projects, less than a third of which are currently operational, according to the filing. — Bloomberg