TotalEnergies will form a new joint venture with India's Adani Green Energy Limited in a deal that will see the French oil giant contribute an equity investment of $444 million, it said on Tuesday.
The pair had said in September 2023 that they would join forces in a deal then announced at $300 million, which would give Total "direct access to ownership of assets" contributed by Adani Green — namely 1.05 gigawatts (GW) of wind and solar farms in India, where the bulk of energy requirements are still met by coal.
This final agreement, into which Total pays significantly more money, will see both sides hold 50 percent of a portfolio of 1.15 GW of solar electricity installations, both operational and under construction, Adani Green said in a statement on Monday.
The electricity will be sold on the wholesale market and through power purchase agreements signed with the federal government agency, Solar Energy Corporation of India, which TotalEnergies said in a statement would allow it to capitalise on the liberalisation of India's power market.
The tie-up is the first since Total pressed pause on its involvement with Adani last year, after allegations of improper dealings and use of tax havens published in early 2023 by U.S. short seller Hindenburg Research wiped about $150 billion in value off the shares of parent Adani Group.
TotalEnergies CEO Patrick Pouyanne has defended his company's investments with Adani — a 37.4% stake in Adani Total Gas and a 19.75% share of Adani Green Energy — saying they were still worth more after the share price drop than when Total first bought in.
The French major, which makes most of its money producing and selling oil and gas, hopes to have 45 GW of renewable energy capacity by 2030.
Shares of Adani Green closed 5.9% higher on Monday.
