Adani, TotalEnergies join hands to invest $50 billion in green hydrogen


French energy major TotalEnergies will pick up a 25 per cent stake in the newly launched Adani New Industries Ltd (ANIL) from Adani Enterprises to jointly build a green hydrogen ecosystem. This is the fourth partnership between the two with earlier ones focused on LNG terminals, city gas distribution and solar power.

Adani Enterprises in a public statement said ANIL plans to invest over $50 billion (Rs 3.9 trillion) over the next 10 years in green hydrogen and the associated ecosystems. In the initial phase, ANIL will develop a green hydrogen production capacity of 1 million ton per annum before 2030, the company said.

Gautam Adani, chairman, Adani Group said, he is confident the company will produce the world’s least expensive green hydrogen. “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. This partnership will open up a number of exciting downstream pathways,” Adani said.

ANIL was incorporated in January this year for steering the new energy and low carbon initiatives of the group. The company, in a regulatory filing earlier this year said, “It will undertake business of developing and operating projects for the synthesis of low carbon fuels and chemicals, generation of low carbon electricity and the manufacture of key components/material for projects including generation of green hydrogen, related downstream products, electricity generation, manufacture of wind turbines.”

In a recent announcement, ANIL said, it aims to be the largest fully integrated green hydrogen player in the world, with presence across the entire value chain, from the manufacturing of renewables and green hydrogen equipment (solar panels, wind turbines, electrolysers, etc.), to large scale generation of green hydrogen, to downstream facilities producing green hydrogen derivatives.

In September 2021, Gautam Adani had announced that Adani Enterprises will invest $20 billion (Rs 1.48 trillion) over 10 years in the renewable energy supply chain, including power generation, manufacturing, transmission, and distribution. Adani had in 2020 announced the group would invest over 70 per cent of the budgeted capex of its energy vertical in and energy-efficient systems.

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

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