- Mergers & Acquisitions
Total to acquire minority stake in world’s largest solar developer
French energy company Total is acquiring a 20% minority interest in Adani Green Energy Limited from India’s Adani Group.
The transaction marks the deepening partnership between the Adani Group – India’s leading infrastructure platform – and Total, in the transition and green energy fields in India. The investment in Adani Green Energy is another step in the strategic alliance between Adani Group and Total, which covers investments in LNG terminals, gas utility business, and renewable assets across India.
The acquisition is in line with the commitment of both Adani and Total to be leading participants in the sustainable economy of the future and to help India develop the country’s renewable energy sector.
In 2018, Total and Adani embarked on the energy partnership with investment by Total in Adani Gas Limited, city gas distribution business, associated LNG terminal business and gas marketing business.
During the development of this partnership, it was further agreed that Total and Adani shall continue this alliance into the wider renewable energy space. Total and Adani agreed to the acquisition of a 50% stake in a 2.35 gigawatts-AC (GWac) portfolio of operating solar assets owned by Adani Green Energy. In addition, Total agreed to acquire a 20% stake in Adani Green Energy. The value of the total investment is USD2.5 billion.
Along with this 20% minority interest in Adani Green Energy, Total will have a seat on the Board of Directors of the company.
Adani Green Energy started in 2015 with the world’s largest single location solar power project located in Kamuthi, Tamil Nadu, with a capacity of 648 megawatts (MW). It has come a long way to be the number one global solar power generation asset. To date, Adani Green Energy has more than 14.6 GW of contracted renewable capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development. The company aims to achieve 25 GW of renewable power generation by 2025.
The partnership with Adani Green Energy in the renewables space in India will be a key contributor to Total’s objective of reaching 35 gigawatt peak (GWp) of gross production capacity from renewable sources by 2025 and adding 10 GWp per year afterwards.
“This agreement is an important step in our alliance with the Adani Group in India and our common vision and goals with respect to the importance of access to low carbon energy in India. Our entry into Adani Green Energy is a major milestone in our strategy in the renewable energy business in India put in place by both parties. Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas,” said Total Chairman and CEO Patrick Pouyanné.
Adani Group Chairman Gautam Adani, added: “We are delighted to deepen our strategic alliance with TOTAL, a global energy major, and welcome them as a significant shareholder in Adani Green Energy Limited. We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India. We look forward to working together towards delivering India’s vision for 450 GW renewable energy by 2030.”