Total Buys Stake in Solar Developer
Total (NYSE: TOT) has announced the acquisition of a 20 percent stake in Adani Green Energy Limited (AGEL) and a 50 percent stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL for an investment of $2.5 billion.
Along with the 20 percent minority interest in AGEL, Total revealed that it will have a seat on the board of directors of the company. Total noted that the investment in AGEL is another step in the strategic alliance between Adani Group and Total, which covers investments in LNG terminals, gas utility business, and renewable assets across India.
According to Total, its partnership with AGEL in the renewables space in India will be a key contributor to its objective of reaching 35 GWp of gross production capacity from renewable sources by 2025 and adding 10 GWp per year afterwards.
“This agreement is an important step in our alliance with the Adani Group in India and our common vision and goals with respect to the importance of access to low carbon energy in India,” the chairman and chief executive officer of Total, Patrick Pouyanne, said in a company statement.
“Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties. Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars; renewables and natural gas,” he added.
Adani Group Chairman Gautam Adani said, “we are delighted to deepen our strategic alliance with Total, a global energy major, and welcome them as a significant shareholder in Adani Green Energy Limited”.
“We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India. We look forward to working together towards delivering India’s vision for 450 GW renewable energy by 2030,” he added.
AGEL is one of the largest renewable companies in India, according to its website, which highlights that the company’s goal is to have 25GW of renewable energy projects by 2025. As part of its ambition to get to net zero by 2050, Total is building a portfolio of activities in renewables and electricity that could account for up to 40 percent of its sales by 2050, Total’s website states.
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