TotalEnergies has entered into an agreement with Adani Enterprises Limited (AEL) to acquire a stake in the latter’s green hydrogen projects platform in India.
TotalEnergies is to acquire a 25% stake in Adani New Industries Limited (ANIL), which will be AEL and TotalEnergies’ exclusive platform for the large-scale production and commercialisation of green hydrogen in India.
ANIL aims to produce one million tonnes of green hydrogen per year (Mtpa) by 2030, building on new renewable electricity generation capacity of around 30GW.
To begin with, ANIL intends to develop a project to produce 1.3 Mtpa of urea derived from green hydrogen for the Indian domestic market, replacing current urea imports, and will invest about $5bn in a 2GW electrolyser, powered by renewable energy from a 4GW solar and wind farm.
To control the production costs of green hydrogen, ANIL will be integrated “throughout the value chain”, from the manufacture of equipment necessary for the generation of renewable electricity and the production of green hydrogen, to the production of green hydrogen itself.
The integrated value chain will also cover green hydrogen being processed into derived products, in particular nitrogen fertilisers and methanol, both for the domestic market and for export.
Adani will bring to the partnership a “deep knowledge of the Indian market, its execution capabilities, and its excellence in operations and capital management”.
TotalEnergies will bring its “in-depth knowledge of global markets, its expertise in renewable technologies and large-scale industrial projects, and its financial strength enabling ANIL to reduce its financing costs”.
and Adani Group – India’s largest private energy and infrastructure conglomerate – which covers investments in LNG terminals, gas distribution, renewable power generation and now green hydrogen generation in India.
The green hydrogen platform will help India decarbonise its transport, industry and agriculture, while contributing to the country’s energy independence.
Patrick Pouyanne, chairman and CEO of TotalEnergies, said: ” Our acquisition of a stake in ANIL is a major step in the implementation of our low-carbon hydrogen strategy, which aims both to decarbonise all the hydrogen consumed by our European refineries by 2030, and to make TotalEnergies a pioneer in the mass production of green hydrogen in order to meet demand.
“We are also very pleased with this agreement, which further strengthens our alliance with the Adani Group in India and contributes to the development of its abundant and inexpensive renewable energy potential.
“This future production capacity of one million tonnes of green hydrogen per year will contribute significantly to TotalEnergies’ ambition to increase new carbon-free molecules – biofuels, biogas, hydrogen, and e-fuels – to 25% of its energy production and sales by 2050.”