TotalEnergies, Adani to Invest $50 Billion in World’s Largest Green Hydrogen Ecosystem
Energy company TotalEnergies of France and Indian multinational conglomerate Adani announced today a new partnership aimed at jointly creating the largest green hydrogen ecosystem in the world.
Under the new partnership, TotalEnergies will acquire a 25% minority interest in Adani New Industries Ltd (ANIL). ANIL plans over $50 billion in green hydrogen and associated ecosystem investments over the next 10 years and expects to develop 1 million ton per annum of green hydrogen production capacity before 2030.
ANIL aims to be the world’s largest fully integrated green hydrogen player, encompassing the full value chain from renewables and green hydrogen manufacturing to large-scale green hydrogen production and downstream facilities producing green hydrogen derivatives.
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, where we want to not only decarbonize the hydrogen used in our European refineries by 2030, but also pioneer the mass production of green hydrogen to meet demand, as the market will take off by the end of this decade.”
Hydrogen is viewed as one of the key building blocks of the transition to a cleaner energy future, particularly for sectors with difficult to abate emissions, in which renewable energy solutions such as wind or solar are less practical. The development of clean hydrogen capacity, such as green hydrogen, which uses renewable energy to power the process to extract hydrogen from other materials, will require massive investments in areas including infrastructure, electrolysis, and transport.
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 is why I find the continued extension of our partnership to hold such great value.”
Today’s announcement follows India’s launch of a Green Hydrogen/Green Ammonia Policy, which includes initiatives aimed at ramping the country’s green hydrogen production to 5 million tonnes by 2030. The policy also established various provisions to accelerate the provision of renewable energy to green hydrogen and green ammonia producers.
The partnership brings together Adani’s knowledge of the Indian market, along with execution and capital management capabilities, and TotalEnergies’ understanding of the global and European markets, credit enhancement to lower finance costs, and technology expertise.
“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 million ton 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.”