Alliance for valorization of India’s abundant renewable power potential
France’s TotalEnergies and Adani New Industries Limited (ANIL) will produce and commercialize one million metric tons of green hydrogen per year (Mtpa) in India by 2030.
The French energy group is taking 25% interest in ANIL under an agreement signed with Adani Enterprises Limited (AEL), the parent of ANIL.
TotalEnergies Chairman and CEO Patrick Pouyanné said on 14 June 2022, “TotalEnergies’ entry into ANIL is a major milestone in implementing our low carbon hydrogen strategy, where we want not only to decarbonize the hydrogen used in our European refineries by 2030, but also to pioneer the mass production of green hydrogen to meet demand, as the market will take off by the end of this decade.
“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 Mtpa 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.”
Adani Group Chairman Gautam Adani elaborated, “The strategic value of the Adani-TotalEnergies relationship is immense at both the business level and the ambition level.
“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.
“Our confidence in our ability to produce the world’s least expensive electron is what will drive our ability to produce the world’s least expensive green hydrogen. This partnership will open up a number of exciting downstream pathways.”
In order to control green hydrogen production costs, ANIL will be integrated along the value chain, from the manufacturing of equipment needed to generate renewable power and produce green hydrogen, to the production of green hydrogen itself and its transformation into derivatives, including nitrogenous fertilizers and methanol, both for the domestic market and export.
To start with, ANIL intends to develop a project to produce 1.3 Mtpa of urea derived from green hydrogen for the Indian domestic market, as a substitution to current urea imports, and will invest around US$5 billion in a 2 GW electrolyzer-fed facility by renewable power from a 4 GW solar and wind farm.
The partnership is based on the remarkable complementarity of the two companies. Adani’s portfolio will contribute its deep knowledge of the Indian market, execution capabilities and operations as well as capital management excellence.
TotalEnergies will offer its thorough understanding of the global markets, expertise in renewable technologies and large-scale industrial projects as well as financial strength, enabling ANIL to lower its financing cost.
The partners’ complementary strengths will help ANIL deliver the largest green hydrogen ecosystem in the world, which will be the lowest green hydrogen cost to the consumer.
The investment in ANIL marks another major step in the strategic alliance between TotalEnergies and Adani Group and will amplify the key role that the partners intend to play in the energy transition, and in helping India decarbonize its mobility, industry and agriculture, while also contributing to the country’s energy independence.
ANIL’s ambition is to invest over US$50 billion over the next 10 years in green hydrogen and associated ecosystem.
In 2018, TotalEnergies and Adani Group embarked on an energy partnership with the development of a joint LNG business, from regas terminals to LNG marketing, and an investment by TotalEnergies in Adani Total Gas Limited, a city gas distribution business.
In 2020, TotalEnergies and Adani Group deepened their relationship with the acquisition by TotalEnergies of a 20% minority interest in Adani Green Energy Limited (AGEL), then the largest solar developer in the world, along with a 50% stake in a 2.35 GW portfolio of operating solar assets owned by AGEL, for a total investment of US$2.5 billion. fiinews.com
