Clean Energy Total Energies Partners with Adani to Develop Green Hydrogen Firm
Total Energies has acquired a 20 % interest in the new company Adani New Industries. The new firm is expected to be the exclusive platform of Adani Enterprises and Total Energies for the production and commercialization of green hydrogen in India.
Paris/France – Total Energies has entered into an agreement with Adani Enterprises (AEL) to acquire a 25 % interest in Adani New Industries (Anil). Anil will be the exclusive platform of AEL and Total Energies for the production and commercialization of green hydrogen in India. Anil will target a production of one million metric tons of green hydrogen per year (Mtpa) by 2030, underpinned by around 30 gigawatts (GW) of new renewable power generation capacity, as its first milestone.
In order to control green hydrogen production costs, Anil will be integrated along the value chain, from the manufacturing of equipment needed to generate renewable power and produce green hydrogen, to the production of green hydrogen itself and its transformation into derivatives, including nitrogenous fertilizers and methanol, both for the domestic market and export. To start with, Anil intends to develop a project to produce 1.3 Mtpa of urea derived from green hydrogen for the Indian domestic market, as a substitution to current urea imports, and will invest around 5 billion dollars in a 2 GW electrolyzer fed by renewable power from a 4 GW solar and wind farm.
This partnership is based on the remarkable complementarity of the two companies. Adani's portfolio will contribute its deep knowledge of the Indian market, execution capabilities, and operations and capital management excellence. Total Energies will offer its thorough understanding of the global markets, expertise in renewable technologies and large-scale industrial projects, and financial strength, enabling Anil to lower its financing cost. The partners' complementary strengths will help Anil deliver the largest green hydrogen ecosystem in the world, which will enable the lowest green hydrogen cost to the consumer.
Adani Group Chairman Gautam Adani said: “The strategic value of the Adani-Total Energies relationship is immense at both the business level and the ambition level. 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.”