TotalEnergies to Invest in Adani Green’s Projects, Sources

TotalEnergies to Invest in Adani Green’s Projects, Sources

TotalEnergies SE will put money into Adani Green Energy Ltd.’s green projects. After someone claimed Gautam Adani’s business did something wrong, this is the first deal between the French oil company and Adani that everyone knows about.

The persons claimed that a transaction is uncertain and that discussions are still ongoing.

The agreement will strengthen Total’s position in the rapidly expanding Indian energy market while giving Adani Green more resources to create new renewable energy projects.

Also, according to information gathered by Bloomberg, Total will strengthen its relations with Adani Green, which is already the company’s second-largest stakeholder with a 19.75% stake.

To appease shareholders who have called for more steps to combat climate change, Total routinely collaborates with Adani. The goal is in line with India’s aspirations to reduce its dependency on coal and oil and become a net-zero carbon nation by 2070.

To acquire a 37.4% share in Adani Gas Ltd., currently known as Adani Total Gas, Total spent $600 million in 2019. In a $2.5 billion deal that was one of the biggest foreign investments in India, it acquired a 20% share in Adani Green as well as a 50% interest in some of the solar farms that Adani Green was operating at the time.

Total’s wager on Adani Green paid off, as its worth increased to $10 billion in 2022 under the leadership of Chief Executive Officer Patrick Pouyanne described the stake as “a source of potential cash.” The duo were looking to partner up and fund billions of dollars worth of green hydrogen development in India.

But after Hindenburg Research charged the Adani Group with “brazen” accounting fraud and market manipulation earlier this year, Total shelved a scheme to create $5 billion worth of green hydrogen projects with Adani Enterprises Ltd. The short seller’s accusations were vehemently refuted by the Adani Group.

Since the short-seller report, Adani’s stocks and bonds have recovered some of their losses, especially after the company received funding from GQG Partners, and an interim report from a panel appointed by the Indian Supreme Court in May concluded that there was no evidence of stock-price manipulation. The tycoon’s business incubator, Adani Enterprises, said that its earnings increased by a factor of two to 7.22 billion rupees ($87 million) in the three months that ended in March.

Adani Green stated in July that it intended to offer shares to institutional investors to raise 123 billion rupees to finance expansion.