TotalEnergies Likely To Invest In Adani Green’s Projects: Report

TotalEnergies SE is in talks to invest in renewable energy projects developed by Adani Green Energy, sources were quoted as saying by Bloomberg.

This potential agreement could represent the first publicly known collaboration between the French oil conglomerate and Gautam Adani since allegations of fraud were leveled against the Indian billionaire's business empire by a short-seller.

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According to a Bloomberg report, Total is looking to buy stakes in some of Adani Green’s projects as part of its drive to expand its portfolio of clean energy projects. The sources further revealed that the French group could invest about $700 million in total into the projects.

However, deliberations are going on and there’s no certainty for a transaction, sources clarified. 

The deal is likely to increase Total’s presence in India’s energy market. The agreement would expand Total's footprint in the rapidly growing Indian energy sector, simultaneously providing Adani Green with additional resources for advancing new renewable energy initiatives. 

Furthermore, it would solidify Total's existing relationship with Adani Green, as it currently holds the second-largest stake of 19.75% in the company, as reported by Bloomberg's data.

Total has frequently joined forces with Adani as part of the French conglomerate's drive to increase its clean-energy production, aligning with shareholder demands for stronger action against climate change. This aspiration harmonizes with India's goal to achieve net-zero carbon emissions by 2070 and reduce its dependence on oil and coal.

In 2019, Total invested $600 million to acquire a 37.4% share in Adani Gas Ltd., which is now known as Adani Total Gas. Additionally, in 2021, Total purchased a 20% stake in Adani Green and secured a 50% interest in several operational solar farms owned by Adani Green in a $2.5 billion transaction, marking one of the most significant foreign investments in India.

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Adani Green said in July that it plans to raise 123 billion rupees to bankroll expansion through selling shares to institutional investors.