Total has bought 20% of solar developer Adani Green Energy (AGEL) from Adani Group, India’s leading infrastructure platform.
The French energy giant described the transaction as another step in the strategic alliance between itself and Adani Group.
Their relationship covers investments in LNG terminals, gas utility business, and renewable assets across India.
In 2018, Total and Adani embarked on the energy partnership with investment by Total in Adani Gas, 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 the acquisition of a 50% stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL and a 20% stake in AGEL for a global investment of $2.5 billion.
Along with this 20% minority interest in AGEL, Total will have a seat on the Board of Directors of the company.
AGEL, started in 2015 with the world’s largest single location solar power project located in Kamuthi, Tamil Nadu (648 MW).
AGEL has over 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 AGEL in the renewables space in India will be a key contributor to Total’s objective of reaching 35 GWp of gross production capacity from renewable sources by 2025 and adding 10 GWp per year afterwards.
Patrick Pouyanne, chairman and CEO of Total, said: “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 AGEL 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.”
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.”