France-based Total to acquire 20% stake in India’s AGEL

French oil and energy group Total has agreed to buy a 20 percent minority stake in India’s Adani Green Energy Limited (AGEL) from Adani Group, as Total builds up its presence in the renewable energy sector.

Total said that its purchase of the stake in AGEL would give the firm a seat on the board of directors of the Indian venture. The two companies had earlier struck a partnership deal back in 2018 in the liquefied natural gas (LNG) sector.

 Total is trying to reduce its dependence on oil and shift towards electricity and renewable energy. It aims to have 35 gigawatts (GW) of gross renewable energy generation capacity by 2025 from around 9 GW now. Recently, it became the first major global energy company to exit the key US oil and gas lobby, American Petroleum Institute (API), due to disagreements over its climate policies and support for easing drilling regulations.

Adani Green Energy has a market capitalization of about $20.25 billion, and a 20 percent stake in the company would be worth about $4.1 billion based on current market prices.

“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,” Total CEO and Chairman Patrick Pouyanne said.

Total and Adani added they had agreed on the acquisition of a 50 percent stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL and a 20 percent stake in AGEL for a global investment worth $2.5 billion.

AGEL is targeting having 25 GW of renewable power generation by 2025, and Total said AGEL would form a key part of Total’s overall plans for 35 GW of gross production capacity from renewable sources by 2025, along with plans for a further 10 GW per year on top of that afterwards.

Adani Green Energy Limited

Adani Green Energy Limited (AGEL), owned by Indian conglomerate Adani Group, operates Kamuthi Solar Power Project, one of the largest solar photovoltaic plants in the world. It currently operates 5,290 MW (megawatt) of wind energy and solar power plants including 46 operational projects in various states of India.