India: TotalEnergies and Adani Join Forces to Create a World-Class Green Hydrogen Company
June 14 2022 - 2:00AM
Business Wire
Regulatory News:
TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) has entered into
an agreement with Adani Enterprises Limited (AEL) to acquire a 25%
interest in Adani New Industries Limited (ANIL). ANIL will be the
exclusive platform of AEL and TotalEnergies for the production and
commercialization of green hydrogen in India. ANIL will target a
production of one million metric tons of green hydrogen per year
(Mtpa) by 2030, underpinned by around 30 gigawatts (GW) of new
renewable power generation capacity, as its first milestone.
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 fertilizers
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 electrolyzer fed by renewable power from a 4 GW
solar and wind farm.
This partnership is based on the remarkable complementarity of
the two companies. Adani's portfolio will contribute its deep
knowledge of the Indian market, execution capabilities, and
operations and capital management excellence. TotalEnergies will
offer its thorough understanding of the global markets, expertise
in renewable technologies and large-scale industrial projects, and
financial strength, enabling ANIL to lower its financing cost. The
partners' complementary strengths will help ANIL deliver the
largest green hydrogen ecosystem in the world, which will enable
the lowest green hydrogen cost to the consumer.
The investment in ANIL marks another major step in the strategic
alliance between TotalEnergies and Adani Group – India’s leading
energy and infrastructure platform – whose operations across India
include LNG terminals, gas utility business, renewable power
generation, and now green hydrogen production. It will amplify the
key role that TotalEnergies and Adani intend to play in the energy
transition, and in helping India decarbonize its mobility,
industry, and agriculture, while also contributing to the country’s
energy independence.
Speaking as the deal was signed, Patrick Pouyanné, Chairman
and CEO of TotalEnergies, said: “TotalEnergies’ entry into ANIL
is a major milestone in implementing our low carbon hydrogen
strategy, where we want not only to decarbonize the hydrogen used
in our European refineries by 2030, but also to pioneer the mass
production of green hydrogen to meet demand, as the market will
take off by the end of this decade. We are also very pleased with
this agreement, which further strengthens our alliance with the
Adani Group in India and contributes to the valorization of India’s
abundant low-cost renewable power potential. This future production
capacity of 1 Mtpa 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.”
Adani Group Chairman Gautam Adani said: “The strategic
value of the Adani-TotalEnergies relationship is immense at both
the business level and the ambition level. 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 is why I find
the continued extension of our partnership to hold such great
value. Our confidence in our ability to produce the world’s least
expensive electron is what will drive our ability to produce the
world’s least expensive green hydrogen. This partnership will open
up a number of exciting downstream pathways.”
In 2018, TotalEnergies and Adani Group embarked on an energy
partnership with the development of a joint LNG business – from
regas terminals to LNG marketing – and an investment by
TotalEnergies in Adani Total Gas Limited, a city gas distribution
business. In 2020, TotalEnergies and Adani Group deepened their
relationship with the acquisition by TotalEnergies of a 20%
minority interest in Adani Green Energy Limited (AGEL), then the
largest solar developer in the world, along with a 50% stake in a
2.35 GWac1 portfolio of operating solar assets owned by AGEL, for a
total investment of $2.5 billion.
***
TotalEnergies and renewable & low-carbon hydrogen
TotalEnergies is convinced that renewable and low-carbon
hydrogen will play a major role in the energy transition. The
Company is working with its suppliers and partners to decarbonize
all the hydrogen used in its European refineries by 2030. This
represents a reduction in CO2 emissions of 3 million tons per year.
Further out, TotalEnergies aims to pioneer the mass production of
renewable and low carbon hydrogen to meet demand for hydrogen fuel
as soon as the market takes off, notably to help decarbonize heavy
transport. The renewable hydrogen production capacity currently
under development in Europe and India will contribute to
TotalEnergies' ambition to increase new molecules to 25% of its
energy production and sales by 2050 – including biofuels, biogas,
hydrogen, and e-fuels.
About TotalEnergies
TotalEnergies is a global multi-energy company that produces and
markets energies: oil and biofuels, natural gas and green gases,
renewables and electricity. Our more than 100,000 employees are
committed to energy that is ever more affordable, cleaner, more
reliable and accessible to as many people as possible. Active in
more than 130 countries, TotalEnergies puts sustainable development
in all its dimensions at the heart of its projects and operations
to contribute to the well-being of people.
@TotalEnergies | TotalEnergies | TotalEnergies
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1 Gigawatt alternative current (GWac)
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