TotalEnergies to invest $300mn in India’s Adani Green Energy joint venture

Adani Group shares have lost nearly $150 billion in value ever since a Hindenburg Research report alleged the owners to be involved tax fraud and insider trading. The group has denied the allegations, and a Supreme Court-appointed panel found no evidence of stock-price manipulation.

Adani Green Energy Limited (AGEL) and TotalEnergies entered into a binding agreement to create a new joint venture, equally owned by the two companies, with a 1,050 MW portfolio. This will comprise a mix of already operational (300 MW), under construction (500 MW) and under development assets (250 MW) with a blend of both solar and wind power.

AGEL will contribute assets to the JV and TotalEnergies will make an equity investment of $300 million into the company, which will be called Adani Green Energy Twenty Three. The company aims to become the Indian leader of renewable energy, with a target of 45 GW renewable power capacity by 2030.

Gautam Adani, Adani Group Chairman, commented: “We are delighted to extend our long-term partnership with TotalEnergies in AGEL. The investment will further strengthen the pivotal role played by AGEL in India’s glide path to decarbonisation. This will help deliver our vision to have 45 GW renewable energy capacity by 2030.”

Patrick Pouyanné, TotalEnergies’ Chairman and CEO, added: “TotalEnergies has been actively developing, notably through AGEL, its presence in the Indian renewable power market. It is a very interesting market by its size and growth and the early development of a merchant market.

“After our first joint venture AGEL23 in 2020 and our acquisition of shares in AGEL in 2021, this new joint venture with AGEL will enable us to speed up our development through direct access to a large portfolio of assets and to support the ambition of AGEL in becoming the Indian leader of renewable energy.”

The completion of the transaction is subject to satisfactory closing conditions and regulatory approvals.