TotalEnergies to acquire 25% stake in Adani’s green hydrogen unit

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French energy giant TotalEnergies has agreed to acquire a 25% stake in Adani Enterprises’ new energy arm, Adani New Industries Ltd. (ANIL). The partnership aims to create the world’s largest green hydrogen ecosystem.

ANIL will be the exclusive platform of Adani Enterprises and TotalEnergies for the production and commercialization of green hydrogen in India. Initially, it will target to develop a green hydrogen production capacity of 1 million tons per annum before 2030, powered by around 30 GW of new renewable power generation capacity.

To control green hydrogen production costs, ANIL will be integrated along the value chain, from the production of equipment needed to generate renewable power and produce green hydrogen, to the production of green hydrogen itself. ANIL will also focus on green hydrogen’s transformation into derivatives, including nitrogenous fertilizers and methanol, both for the domestic market and export.

Over the next 10 years, ANIL will invest more than $50 billion to develop green hydrogen and an associated ecosystem. To start with, it plans to develop a project that will domestically produce 1.3 Mtpa of urea derived from green hydrogen, as a substitution for current urea imports. It will also invest around $5 billion in a 2 GW electrolyzer fed by renewable power from a 4 GW solar and wind farm.

“The strategic value of the Adani-TotalEnergies relationship is immense at both the business level and the ambition level,” said Gautam Adani, the chairman of Adani Group. “In our journey to become the largest green hydrogen player in the world, the partnership with TotalEnergies adds several dimensions that include R&D, market reach, and an understanding of the end consumer. This fundamentally allows us to shape the market demand.”

Adani claimed it is firmly positioned to produce the world’s least expensive green hydrogen.

“TotalEnergies’ entry into ANIL is a major milestone in implementing our renewable and low carbon hydrogen strategy, where we want to not only decarbonize the hydrogen used in our European refineries by 2030, but also pioneer the mass production of green hydrogen to meet demand, as the market will take off by the end of this decade,” said Patrick Pouyanné, chairman and CEO of TotalEnergies. “This future production capacity of one million tonnes per annum of green hydrogen will be a major step in increasing TotalEnergies’ share of new decarbonized molecules, including biofuels, biogas, hydrogen, and e-fuels, to 25% of its energy production and sales by 2050.”

With the investment in ANIL, the strategic alliance between Adani and TotalEnergies now covers LNG terminals, gas utility, renewables, and green hydrogen production.

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