In a major development, Business conglomerate Adani Group and France’s TotalEnergies have joined hands to create the world’s largest green hydrogen ecosystem. According to the company statement, French energy giant TotalEnergies is set to acquire a 25% stake in Adani New Industries Ltd (ANIL), Adani Group’s hydrogen venture, as part of the strategic tie-up. The companies have also informed that ANIL will invest USD 50 Bn in green hydrogen over the next 10 years.
ANIL and Total Energies will now jointly create the world’s largest green hydrogen ecosystem as part of their newest agreement. ANIL is set to invest USD 50 Bn in the project to develop a green hydrogen production capacity of 1 million tonnes per annum before 2030 in the initial phase. Releasing a statement about the joint agreement, Gautam Adani, chairman of Adani Group said that “the strategic value of the Adani-TotalEnergies relationship is immense at both the business level and ambition level.”
In our journey to be the world’s largest Green H2 player, the partnership with @TotalEnergies will fundamentally shape market demand. Our ability to produce the world’s least expensive electron will lead to us producing the world’s least expensive Green H2. pic.twitter.com/ZfwjVuxXJH
— Gautam Adani (@gautam_adani) June 14, 2022
“Adani and energy supermajor TotalEnergies of France, have entered into a new partnership to jointly create the world’s largest green hydrogen ecosystem. In this strategic alliance, TotalEnergies will acquire 25% minority interest in ANIL from Adani Enterprises Ltd (AEL). The new partnership cantered on green hydrogen, is expected to transform the energy landscape both in India and globally. Both Adani and TotalEnergies are pioneers in energy transition and clean energy adoption,” the joint statement by Adani Enterprises and TotalEnergies read.
‘Partnership will open exciting downstream pathways’: Adani
“In our journey to become the largest green hydrogen player in the world, the partnership with TotalEnergies adds several dimensions that include R&D (research and development), market reach and an understanding of the end consumer. This fundamentally allows us to shape the market demand. This is why I find the continued extension of our partnership to hold such great value. Our confidence in our ability to produce the world’s least expensive electron is what will drive our ability to produce the world’s least expensive green hydrogen,” Adani said in a statement while adding that the newly agreed partnership will open exciting downstream pathways in the sector.
The new partnership is expected to make a big impact on the hydrogen power sector as the two companies are market giants. The Adani Group hold expertise in the Indian market and capital management, and TotalEnergies is a known global player and hold expertise in the European market. TotalEnergies, which has its business spread across 130 countries, also holds expertise in underlying technologies in the sector.
(With agency inputs)