Total has signed an agreement to buy a 20% minority interest in the world largest solar energy company, Adania Green Energy Limited (AGEL), from Adani Group.
“This agreement is an important step in our alliance with the Adani Group in India and our common vision and goals with respect to the importance of access to low carbon energy in India,” said Patrick Pouyanné, chairman and CEO of Total. “Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties. 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.”
This is part of a larger strategic alliance between Adani Group and Total, which covers investments in LNG terminals, gas utility business and renewable assets across India.
Total and Adani agreed the acquisition of a 50% stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL and a 20% stake in AGEL for a global investment of $2.5 billion. Along with this 20% minority interest in AGEL, Total will have a seat on the board of directors of the company.
The partnership with AGEL in the renewables space in India will be a key contributor to Total’s objective of reaching 35 GWp of gross production capacity from renewable sources by 2025 and adding 10 GWp per year afterwards.
“We are delighted to deepen our strategic alliance with TOTAL, a global energy major, and welcome them as a significant shareholder in Adani Green Energy Limited,” said Adani group chairman Gautam Adani. “We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India. We look forward to working together towards delivering India’s vision for 450 GW renewable energy by 2030.”
