Total To Buy 25% Stake In Adani Arm For Green Hydrogen Value Chain

Billionaire Gautam Adani has partnered French oil major TotalEnergies SE to create a green hydrogen value chain that would produce everything from solar panels to electrolysers.

Total will acquire a 25% stake in Adani New Industries Ltd. as part of the green hydrogen deal, according to an exchange filing on Tuesday. Adani New Industries will develop a 1-million-tonne-per-annum production capacity of green hydrogen before 2030.

The amount to be paid by Total is undisclosed. Adani New Industries plans to invest $ 50 billion (about Rs 3.90 lakh crore) over the next 10 years to develop a green hydrogen ecosystem, the statement said.

The Indian government is looking to incentivize green hydrogen production in the country as it looks to speed up the shift away from fossil fuels. Earlier this year, it announced a national hydrogen policy looking to produce 5 million tonnes of green hydrogen annually by 2030.

Green hydrogen is produced by splitting water into hydrogen and oxygen by using renewable energy. It holds potential in decarbonising industries that require high amounts of heat like steel and cement production.

Several of India’s public and private firms are vying for a slice of the green hydrogen pie. Besides Adani, Mukesh Ambani’s Reliance Industries Ltd. is investing in renewable infrastructure to start producing green hydrogen. Ambani has vowed to deliver green hydrogen at $ 1 / kg — a near 60% cut from current costs.

Other companies like state-run NTPC Ltd., NHPC Ltd. and Indian Oil Corp., and infrastructure conglomerate Larsen & Toubro Ltd. are also looking to tap into the emerging sector.

The announcement by Adani also marks deepening of its partnership with Total Energies. The French firm is trying to boost its clean energy output as its shareholders push for more effort toward tackling the climate crisis.

This is the third such deal Total has made with Adani. It had acquired a 37% stake in Adani Gas Ltd., now named Adani Total Gas Ltd., in 2019 to expand its presence in natural gas. Later, it bought a 20% stake in Adani Green Energy Ltd. and 50% of Adani’s 2-GW solar portfolio.

Also Read: The Promise And Problems Of Hydrogen – BQ Explains

Shares of Adani Enterprises Ltd. rose more than 9.3%, the most since June 18, 2021, at open on Tuesday before trimming the gains.

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