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French oil giant TotalEnergies and Indian conglomerate Adani Enterprises, owned by India’s second richest person Gautam Adani, plan to invest over $50 billion over the next 10 years in green hydrogen and associated ecosystem, according to a statement made by the Adani Group.
TotalEnergies will buy a 25 percent stake in Adani New Industries (ANIL) from Adani Enterprises for this green hydrogen foray.
ANIL will target a production of one million metric tonnes per annum (MTPA) of green hydrogen by 2030, underpinned by around 30 gigawatts (GW) of new renewable power generation capacity, as its first milestone, the French major said in a statement. That is one-fifth of India’s green hydrogen production target by 2030.
The statement said: “In order to control green hydrogen production costs, ANIL will be integrated along the value chain, from the manufacturing of equipment needed to generate renewable power and produce green hydrogen, to the production of green hydrogen itself and its transformation into derivatives, including nitrogenous fertilisers and methanol, both for the domestic market and export. To start with, ANIL intends to develop a project to produce 1.3 MTPA of urea derived from green hydrogen for the Indian domestic market, as a substitution to current urea imports, and will invest around $5 billion in a 2 GW electrolyser fed by renewable power from a 4 GW solar and wind farm,”.
Gautam Adani, Chairman, Adani Group said: “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 a number of exciting downstream pathways.”
Patrick Pouyanné, Chairman and CEO of TotalEnergies said: “TotalEnergies’ entry into ANIL is a major milestone in implementing our renewable and low carbon hydrogen strategy. This future production capacity of 1 million tons 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% of its energy production and sales by 2050.”
With the ANIL investment, the strategic alliance between the Adani portfolio and TotalEnergies now covers LNG terminals, the gas utility business, renewables business and green hydrogen production.
(Writing by Sowmya Sundar; Editing by Anoop Menon)
