Total picks 20% stake in Adani Green Energy

French energy major Total SE on Monday announced acquisition of minority stake — 20 per cent — in Adani Group’s renewable energy arm, Adani Green Energy Limited (AGEL).

Following the stake-buy, Total will have a seat on the board of directors of the company.

As per the transaction, Total acquired the shares held by the Adani Promoter Group in AGEL. “The transaction marks the deepening partnership between the Adani Group – India’s leading infrastructure platform — and Total, in the transition and green energy fields in India,” a Total statement said.

The partnership with AGEL in the renewables space in India will be a key contributor to Total’s objective of reaching 35 GWp (gigawatts peak) of gross production capacity from renewable sources by 2025 and adding 10 GWp per year afterwards, it added.

Also read: CCI approves Total Renewables’ stake buy in Adani Green Energy

Speaking on the occasion, Patrick Pouyanné, Chairman and CEO of Total, said, “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. 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.”

In a statement, Adani Group Chairman, Gautam Adani, said, “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. 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.”

Also read: Adani Green gets 600 MW wind-solar hybrid power project from SECI

Notably, in 2018, Total and Adani partnered with an investment by Total in Adani Gas Limited, Adani Group’s city gas distribution business, associated LNG terminal business and gas marketing business.

Renewable energy space

During the development of this partnership, it was further agreed that Total and Adani shall continue this alliance into the wider renewable energy space, Total said.

Total and Adani agreed the acquisition of a 50 per cent stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL and a 20 per cent stake in AGEL for a global investment of $2.5 billion, Total stated.

Total was represented by Latham & Watkins and AZB Partners, while the Adani Promoter Group was represented by Clifford Chance and Cyril Amarchand Mangaldas.

Started in 2015 AGEL has now ranked as the Top global solar power generation asset developer by Mercom Capital. As on date, AGEL has over 14.6 GW 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 and is committed to contribute meaningfully to India’s COP21 goals and to the wider UNFCC goals of sustainability.

AGEL shares lost over 1.5 per cent on Monday early trades at ₹933.20 on BSE.