Adani and TotalEnergies to develop mega green hydrogen company

TotalEnergies has agreed with Adani Enterprises Limited (AEL) to acquire a 25% interest in Adani New Industries Limited (ANIL).

ANIL will be the exclusive platform of AEL and TotalEnergies for the production and commercialisation of green hydrogen in India. ANIL will target production of one million tonnes/year of green hydrogen by 2030, underpinned by around 30 GW of new renewable power generation capacity, as its first milestone.

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 fertilisers and methanol, both for the domestic market and export. To start with, ANIL intends to develop a project to produce 1.3 million tonnes/year of urea derived from green hydrogen for the Indian domestic market, as a substitution to current urea imports, and will invest around $5 billion in a 2 GW electrolyser fed by renewable power from a 4 GW solar and wind farm.

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, TotalEnergies 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 partners’ complementary strengths will help ANIL 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.

ANIL’s ambition is to invest over USD 50 billion in green hydrogen and associated ecosystems over the next ten years. In the initial phase, ANIL will develop a green hydrogen production capacity of 1 million ton per annum before 2030.

Mr Gautam Adani, Chairman Adani Group, said, “In our journey to become the largest green hydrogen player in the world, the partnership with TotalEnergies adds several dimensions that include R&D, market reach and an understanding of the end consumer. This fundamentally allows us to shape market demand.”

Mr Patrick Pouyanné, Chairman and CEO of TotalEnergies, said, “This future production capacity of 1 million tons per annum of green hydrogen will be a major step in increasing TotalEnergies’ share of new decarbonised molecules including biofuels, biogas, hydrogen, and e-fuels to 25% of its energy production and sales by 2050.”