Energy major Total will acquire 50% stake in all operational renewable energy projects of Adani Green Energy Ltd. (AGEL) for $510 million.
“AGEL and Total Gas & Power Business Services SAS (TOTAL) have entered into a binding arrangement for investment of approximately $510 million for acquisition of 50% stake and other instruments in a Joint Venture Company which will house 2,148 MWac operating solar projects presently 100% owned by AGEL. The balance 50% stake in the JV Co. shall be held by AGEL,” the Adani Group firm said in a statement. The solar portfolio is spread across 11 States in India.
Commenting on the deal, Gautam Adani, chairman, Adani Group said, “We are delighted to extend our long-term partnership with Total to our renewable energy business in AGEL. The investment reinforces the immense potential in India’s renewable energy sector, as well as Adani Group’s commitment towards sustainable development. This is a pivotal step in our journey towards building the world’s largest solar power company by 2025 and the world’s largest renewable power company by 2030.”
The transaction is subject to customary approvals and definitive agreements.
Total chairman and chief executive officer Patrick Pouyanne said, “Total is fully engaged in the energy transition and to supporting India, a key country in the fight against climate change, in diversifying its energy mix through partnerships in natural gas and now in solar energy, he said.
“This interest in over 2 GW of solar projects represents a real change of scale of our presence in India’s renewable energy sector, which has very significant growth potential in the coming years,” he added.
“ It will contribute to our ambition to deploy 25 GW of renewable energy by 2025. Extending the partnership with the Adani Group to renewable energies will allow us to benefit from its in-depth knowledge of the Indian electricity market.”
(With PTI inputs)
