What are we talking about?
French energy major TotalEnergies will buy a 25% stake in Adani New Industries Ltd (ANIL) as part of a deal with Adani Enterprises Ltd.
The French oil giant TotalEnergies SE and the Indian billionaire’s conglomerate are teaming up to produce 1 million tons of green hydrogen (the hydrogen generated by renewable energy or from low-carbon power) a year by 2030. This is an attempt to decarbonize India- the world’s 3rd largest polluter.
The two already have a tie-up for building liquefied natural gas terminals, gas utilities, and renewable energy businesses in India.
What’s in it for them?
The JV comes as the Government has announced a National Hydrogen Policy (NHP) that gives a slew of incentives to projects commissioned under it before 2025. Green hydrogen projects, the manufacturing of wind turbines, electrolyser, and solar module batteries, among other components, will be produced to create an entire ecosystem.
Mutual Synergies: Adani will bring its deep knowledge of the Indian market, quick execution expertise, operations excellence, and capital management philosophy to the partnership.
As for TotalEnergies, it will bring its deep understanding of the global and EU market, credit enhancement, and financial strength to cut financing costs to the table.
What brings Total to hydrogen?
After facing much criticism, the oil giant is looking to speed up on its quest to achieve a global carbon-neutral footprint for which it is engaged in a fierce battle with other oil and gas giants in the US and Europe. The world’s top 8 oil and gas companies have set a deadline of 2050 to achieve this carbon-neutral status.
Too long? Here’s a one-liner: TotalEnergies to pick up 25% in Adani New Industries and team up for multi-billion Indian hydrogen plans.