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Adani, Total Energies tie up to deliver ‘world’s least expensive’ green hydrogen

Adani and Total Energies have entered into a new partnership to jointly create the world’s largest green hydrogen ecosystem, which will produce the cheapest fuel

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  • ANIL’s ambition is to invest over USD 50 billion over the next 10 years in green hydrogen and the associated ecosystem
  • In the initial phase, Adani New Industries Ltd will develop green hydrogen production capacity of 1 million tonnes per annum before 2030

Ahmedabad: Adani and energy supermajor Total Energies of France have entered into a new partnership to jointly create the world’s largest green hydrogen ecosystem, said the company in an official statement on Tuesday. In this strategic alliance, Total Energies will acquire 25 percent minority interest in Group

(ANIL) from Adani Enterprises Ltd (AEL). The new partnership, centered on green hydrogen, is expected to transform the energy landscape both in India and globally, said the statement. “Both Adani and Total Energies are pioneers in energy transition and clean energy adoption, and this joint energy platform further strengthens the public ESG commitments made by both the companies,” it added.

Adani to invest USD 50 bn in green hydrogen in next 10 years

ANIL’s ambition is to invest over USD 50 billion over the next 10 years in green hydrogen and the associated ecosystem. In the initial phase, Adani New Industries Ltd will develop green hydrogen production capacity of 1 million tonnes per annum before 2030.

“The strategic value of the Adani-Total Energies relationship is immense at both the business level and the ambition level,” said Gautam Adani, Chairman, Adani Group. “In our journey to become the largest green hydrogen player in the world, the partnership with Total Energies adds several dimensions that include R&D, market reach and an understanding of the end consumer. This fundamentally allows us to shape market demand. This is why I find the continued extension of our partnership to hold such great value. Our confidence in our ability to produce the world’s least expensive electron is what will drive our ability to produce the world’s least expensive green hydrogen. This partnership will open up a number of exciting downstream pathways,” said Adani.

“Total Energies’ entry into ANIL is a major milestone in implementing our renewable and low carbon hydrogen strategy, where we want to not only decarbonise the hydrogen used in our European refineries by 2030, but also pioneer the mass production of green hydrogen to meet demand, as the market will take off by the end of this decade,” said Patrick Pouyann, Chairman and CEO of Total Energies. “We are also very pleased with this agreement, which further strengthens our alliance with the Adani Group in India and contributes to the valorisation of India’s abundant low-cost renewable power potential. This future production capacity of 1 million tonnes per annum of green hydrogen will be a major step in increasing Total Energies’ share of new decarbonised molecules, including biofuels, biogas, hydrogen, and e-fuels to 25 percent of its energy production and sales by 2050,” said Pouyann.

Partnership builds on exceptional synergies between the 2 companies

This partnership builds on the exceptional synergies between the two platforms. While Adani will bring its deep knowledge of the Indian market, rapid execution capabilities, operations excellence and capital management philosophy to the partnership, Total Energies will bring its deep understanding of the global and European market, credit enhancement and financial strength to lower the financing costs, and expertise in underlying technologies. The complementary strengths of the partners will help Adani New Industries Ltd deliver the largest green hydrogen ecosystem in the world, which, in turn, will deliver the lowest cost of Green Hydrogen to the consumer and help accelerate the global energy transition, said the statement.

ANIL aims to be the largest fully integrated green hydrogen player in the world, with presence across the entire value chain, from the manufacturing of renewables and green hydrogen equipment (solar panels, wind turbines, electrolysers, etc), to large scale generation of green hydrogen, to downstream facilities producing green hydrogen derivatives, it added.

With this investment in Adani New Industries Ltd, the strategic alliance between the Adani Portfolio and Total Energies now covers LNG terminals, the gas utility business, renewables business and green hydrogen production. The partnership helps India in its quest to build the fundamental pillars of economic sustainability by driving decarbonisation of industry, power generation, mobility, and agriculture thereby mitigating climate change, and ensuring energy independence.

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