TotalEnergies Expands Plans to Partner with Adani Green on a 50:50 Basis

TotalEnergies of France is nearly finished with its $300 million investment in Adani Green Energy, a new joint venture business that will house around 1 GW of renewable energy projects. According to the sources, it will be a joint venture that the two businesses will equally own and contain a mixture of solar and wind generation assets. The assets will include 250 MW of operational capacity, 500 MW of facilities that are under development, and 250 MW of projects that are currently planned.

This new development represents a change in the French energy giant's position after it shelved a $4 billion green hydrogen project with the Adani Group in February as a result of a research by Hindenburg Research on the company. Hindenburg had charged the Adani Group with using offshore entities and secret related party transactions to manipulate stock prices of publicly traded firms. 

Adani Green will contribute with the renewable energy assets while TotalEnergies will invest $300 million in the project as equity. Additionally, TotalEnergies will provide 50% of the capital expenditure needed for the 750 MW of current and forthcoming assets.

The negotiations between the two businesses have proceeded to an advanced stage, and an announcement of the joint venture is anticipated within the next few days. After the promoters, who own around 56.27% of Adani Green Energy, TotalEnergies is the second-largest shareholder with a 19.75% stake. Additionally, the Adani Group and TotalEnergies have a listed joint venture called Adani Total Gas.