TotalEnergies Likely To Invest $300 Million In Joint Venture With Adani Green: Report

France’s TotalEnergies is likely to invest around $300 million in a new joint venture with Adani Green Energy, which will house around 1GW of renewable energy projects, sources were quoted as saying by The Economic Times.

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The sources further added that it will be an equally owned joint venture between the two companies and will hold a mix of solar and wind power assets. The assets will reportedly comprise 250 MW of operational capacity, 500 MW of under-construction facilities and 250 MW of planned projects.

The financial transaction by TotalEnergies will also mark a shift in the stance of the French company since it put on hold a $4 billion green hydrogen project with the Adani Group in February after Hindenburg Research published a report on the group.

US short seller Hindenburg Research had accused the Adani Group of stock manipulation of its listed companies through offshore entities and undisclosed related party transactions, however, Gautam Adani denied all the allegations. 

TotalEnergies is set to make a $300 million equity investment in the project, while Adani Green will bring in its renewable energy assets. Moreover, TotalEnergies will shoulder 50% of the capital investment needed for the 750 MW of assets that are currently under construction and in the pipeline.

The sources further revealed that the discussions between the two companies have reached an advanced stage and the joint venture is likely to be announced in a few days.

TotalEnergies holds a significant 19.75% stake in Adani Green Energy, making it the second-largest shareholder, trailing behind the promoters who possess approximately 56.27% of the company. Furthermore, TotalEnergies and the Adani Group maintain an established listed joint venture known as Adani Total Gas.

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Adani Green stock has lost over 45% after the release of Hindenburg report in January, but has reportedly climbed over 130% since hitting a 52-week low of Rs 439.35 in late February.