France’s Total to invest $2.5bn in India’s Adani Green Energy

SINGAPORE (ICIS)–France’s Total will acquire a 20% interest in Adani Green Energy Ltd (AGEL), along with a 50% stake in a 2.35 GWac (gigawatt alternating current) portfolio of the Indian solar developer’s operating solar assets, for a total of $2.5bn.

The minority interest in AGEL will be acquired from India’s Adani Group.

“Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India … Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas,” Total chairman and CEO Patrick Pouyanne said.

AGEL started operations in 2015 with the world’s largest single location solar power project located in Kamuthi, Tamil Nadu (648 megawatts [MW]), it said.

“As on date, AGEL has over 14.6 GW [gigawatt] of contracted renewable capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development. The company aims to achieve 25 GW of renewable power generation by 2025,” Total said.

The deal in India is envisioned to be a key contributor to Total’s objective of achieving 35 GWp (gigawatt-peak) of gross production capacity from renewable sources by 2025 and adding 10 GWp per year afterwards.

In 2018, Total invested in Adani Gas Ltd, city gas distribution business, associated liquefied natural gas (LNG) terminal business and gas marketing business.