Total buys 20% stake in Adani Green for $2.5 bn

New Delhi, January 18

French oil and energy group Total has agreed to a $2.5-billion deal that includes buying a 20% minority stake in Adani Green Energy Ltd (AGEL) from Adani Group, as it builds up its presence in the renewable energy sector.

The deal involves Paris-based Total getting a Board seat in the largest solar energy developer in the world, as well as a 50% stake in a 2.35 gigawatts portfolio of operating solar assets, the two firms said in statements.

Total had in 2018, agreed to buy a 37.4% stake in Adani Gas Ltd — the city gas distribution firm of the Adani Group, and a 50% stake in the billionaire Gautam Adani-run ports-to-energy conglomerate’s under-construction Dhamra LNG project in Odisha.

In the statement, the French giant said the acquisition of a 20% minority interest in Adani Green Energy Limited (AGEL) from Adani Group “marks the deepening partnership between the Adani Group – India’s leading infrastructure platform - and Total, in the transition and green energy fields in India.” Total is aiming to reduce its dependence on oil and is shifting towards electricity and renewable energy. It is targeting to have 35 gigawatts (GW) of gross renewable energy generation capacity by 2025, from around 7 GW now. It wants to add 10 GW per year afterward.

AGEL is targeting 25 GW of renewable capacity by the same year. As on date, AGEL has over 14.6 GW of contracted capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development.

Adani Group chairman Gautam Adani had last year signalled room for promoters to dilute their stake in AGEL saying global energy producers, including Total, were interested in investing to expand their renewable portfolios. — PTI

Deal dynamics

• The deal involves Paris-based Total getting a Board seat in Adani Green Energy Ltd., the largest solar energy developer in the world, and a 50% stake in a 2.35 GW portfolio of operating solar assets
• Total had in 2018, agreed to buy a 37.4% stake in Adani Gas Ltd — the city gas distribution firm of the Adani Group, and a 50% stake in the Adani-run ports-to-energy conglomerate’s under-construction Dhamra LNG project
• Total is targeting to have 35 gigawatts (GW) of gross renewable energy generation capacity by 2025, from around 7 GW now

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