Adani Green Energy has planned to enter into a joint venture with TotalEnergies. The French company is all set to invest USD 300 million to form a 50-50 joint venture with the Adani Group. This is going to be a huge step for the Adani Group towards expansion of the energy sector. The new joint venture company will house around 1,050 MWac portfolios comprising a mix of already operational, under construction and underdevelopment assets. This includes both solar and wind power projects. This joint venture is also one of the biggest ventures being taken up by the Adani Group after the Adani Supreme Court incident, which held no grounds.
The 50:50 Joint Venture Between Adani Green Energy and TotalEnergies:
Gautam Adani, the founder of the Adani Group, has recently mentioned that the transaction details of the joint venture between Adani Green Energy and TotalEnergies are still under discussion and subject to customary approval. This development marks a huge shift in French energy’s stance. It had earlier put on hold a USD 4 billion green hydrogen project with the Adani Group in February after the Adani Supreme Court Case, where the Hindenburg Report accused the Adani Group of stock price manipulation. However, all these allegations were cleared pretty soon, and the Adani Group was back to business in no time.
TotalEnergies currently has a 19.75% stake in Adani Energy. It is the second largest shareholder after the promoters, who hold 56.27% stake. TotalEnergies and the Adani Group already have an existing joint venture, which is the Adani Total Gas. The stock has lost around 45% since the beginning but has climbed to 130% after the Adani Supreme Court case. This is a major comeback by the Adani Group and highlights its nature of perseverance and high level of resilience even during times of difficulty.
The renewable energies holding of the Adani Group has said that it is planning to raise INR 12,300 crore from the public sale of shares to institutional investors. This capital will allow the Adani Group to expand its energy sector further and reduce its dependence on non-renewable energy sources. Our planet Earth will become a greener planet, and people will be able to lead their lives in a much better manner.
How Does the Joint Venture Benefit Both Adani Green Energy and TotalEnergies?
TotalEnergies has been actively developing its presence in the Indian renewable power sector through AGEL. India has a very interesting renewable power market by its growth and size, and it also has a lot of potential for growth in the upcoming year. This is the main reason why TotalEnergies has made up its mind to enter into a joint venture. The joint venture would allow TotalEnergies to speed up its market development in the energy power sector. It would gain direct access to a large portfolio of assets under the Adani Group. The collaboration would help Adani Green Energy achieve its dream of becoming a leader in the renewable energy sector in India.
About Adani Green Energy Limited:
Adani Green Energy Limited is the largest renewable energy platform in India. It functions under the Adani portfolio. It also has the world’s largest renewable portfolio with a locked-in growth of 20.4 GW across the various sectors. The company builds, develops, operates, owns, and maintains utility-scale grid-connected wind and solar projects in different corners of the country. AGEL has currently put its focus on the decarbonisation of power generation. It is helping India meet its sustainability goals in the long run. This is going to help our country build an excellent reputation for itself on a global scale. We will also be able to become a self-reliant nation in terms of energy requirements.
TotalEnergies is a multi-energy company that produces and markets different forms of energy. The company has over 1 lakh employees who are committed to providing energy that is cleaner, affordable, reliable, and accessible to a larger mass of people. TotalEnergies is currently active in over 130 countries. It works towards achieving its goal of sustainable development to contribute to the well-being of the people. It also aims to get to net zero by 2050, because of which it is actively trying to build a portfolio in the renewable energy sector.
In this way, the joint venture between Adani Green Energy and TotalEnergies is a huge milestone for the Adani Group after the Adani Supreme Court case. It will allow the conglomerate to reach the apex of success in no time at all and will also offer it further scope to diversify its portfolio.