TotalEnergies will form a joint venture (JV) with India’s Adani Green Energy Ltd. in a deal in which the French oil giant will contribute an equity investment of $444 million, it said on Tuesday.
The two firms had formed a JV in September 2023 worth $300 million, which gave Total “direct access to ownership of assets” contributed by Adani Green — namely 1.05 gigawatts (GW) of wind and solar farms in India, where the bulk of energy requirements are still met by coal.
The new agreement, into which Total pays more money, will see each side hold 50% of another portfolio of 1.15 GW of solar electricity installations, both operational and under construction, Adani Green said in a statement.
The electricity will be sold on the wholesale market and through power purchase agreements signed with the Central government agency, Solar Energy Corporation of India, which TotalEnergies said in a statement, would allow it to capitalise on the liberalisation of India’s power market.
TotalEnergies has described India as a key market to develop both its natural gas and renewable energy businesses.
Searing heatwaves and an uptick in economic activity resulted in India’s electricity generation growing at an average of about 8% annually following the pandemic year of 2020/21, outpacing power demand growth in every major global economy.
Total pressed pause on further involvement with Adani early last year, after allegations of improper dealings and use of tax havens published by U.S. short seller Hindenburg Research wiped about $150 billion in value off the shares of parent Adani Group.
But TotalEnergies CEO Patrick Pouyanne has defended his company’s investments with Adani — it also has a 37.4% stake in Adani Total Gas and a 19.75% share of Adani Green Energy — saying they were still worth more after the share price drop than when Total first bought in.
The French major, which makes most of its money producing and selling oil and gas, hopes to have 45 GW of renewable energy capacity by 2030.
Shares of Adani Green closed 5.9% higher on Monday.
