Billionaire Gautam Adani Teams Up With TotalEnergies And Will Invest $50 Billion For Green Hydrogen Push
June 14, 2022 - Forbes
Adani Group, led by India’s second-richest person, Gautam Adani, and French firm TotalEnergies, which produces and markets fuels, natural gas and electricity, agreed to a deal in which TotalEnergies will acquire a 25% stake in Adani New Industries from Adani Enterprises, and Adani New Industries then will invest more than $50 billion in developing green energy over the next 10 years, according to a statement on Tuesday.
“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,” Gautam Adani, chairman of Adani Group, said in a statement.
Adani New Industries aims to be the world’s largest integrated hydrogen producer by expanding its presence across the value chain, from producing renewables and green energy equipment such as solar panels and wind turbines to creating downstream facilities that produce green hydrogen derivatives such as nitrogenous fertilizers and methanol.
The first phase will produce 1 million tons of green hydrogen per year that will be powered by 30 gigawatts of renewable energy before 2030. It will also produce 1.3 million tons of urea fertilizer from green hydrogen per year for the Indian market, which will offset the country’s urea imports.
“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,” Patrick Pouyanné, chairman and CEO of TotalEnergies said.
Adani Group and TotalEnergies started their partnership with a joint LNG business in 2018. In 2020, the French company acquired a 20% stake in Adani Green Energy, which is the world’s largest solar energy producer, and a 50% stake in a 2.35 Gwac (Gigawatts alternating current) of operating solar assets owned by the company for a total investment of $2.5 billion.
Gautam Adani and his family have a net worth of $74.8 billion and were ranked No.2 in India’s Richest list that was released by Forbes in October last year. Adani Enterprises' stock price jumped by more than 5% at 4 P.M. after the announcement.