The partnership gives TotalEnergies direct access to Adani’s extensive wind and solar farms across India, where coal remains the dominant energy source
French energy giant TotalEnergies and India's Adani Green Energy have solidified their collaboration in the renewable energy sector, marking a renewed commitment and a break from past controversies. The partnership involves a significant $444 million investment from TotalEnergies, securing a 50 percent stake in a joint venture focused on expanding solar energy capacity in India, as per a news report in Reuters.
The deal, approved by Adani Green Energy’s board, marks a substantial increase from the initial $300 million investment announced in September 2023. This partnership grants TotalEnergies direct access to Adani’s extensive wind and solar farms across India, where coal remains the dominant energy source.
A spokesperson from TotalEnergies confirmed the development, indicating that a formal announcement would follow on Tuesday.
The joint venture is expected to manage 1.15 gigawatts of solar electricity installations, including both operational and under-construction projects. However, the companies have not provided an explanation for the increased investment.
This agreement represents the first major collaboration between the two companies since TotalEnergies paused its involvement with Adani following allegations of improper dealings and the use of tax havens, as reported by Hindenburg Research in early 2023.
These allegations led to a dramatic fall in Adani Group's market value, with shares plummeting by approximately $150 billion.
Despite the controversy, TotalEnergies CEO Patrick Pouyanne has maintained confidence in his company’s investments in Adani, which include a 37.4 percent stake in Adani Total Gas and a 19.75 percent share in Adani Green Energy. Pouyanne highlighted that these investments remain more valuable than when they were initially made, even after the share price decline.
TotalEnergies, traditionally known for its oil and gas operations, is aggressively expanding its renewable energy portfolio, aiming to achieve 45 gigawatts of capacity by 2030. This joint venture with Adani Green Energy represents a significant step towards that goal, reinforcing the company's commitment to renewable energy in one of the world's fastest-growing markets.