France's TotalEnergies has agreed to take 25% stake in Adani New Industries Limited (ANIL) that aims to generate 1 million ton green hydrogen annually (Mtpa) by 2030 deploying new renewable energy production capacity of around 30 GW.
Adani Group launched ANIL in January 2022 to undertake initiatives for new energy business as green hydrogen (see Adani Launches New Energy Business Subsidiary).
Part of Adani Enterprises Limited (AEL), ANIL will be present at every step of the way in the value chain, right from manufacturing of equipment for renewable energy generation and green hydrogen production to producing green hydrogen and its by-products especially nitrogen fertilizers and methanol. These will be sold domestically as well as exported.
To start with, ANIL plans to develop a project to generate 1.2 Mtpa of green hydrogen-derived urea for the domestic Indian market which will curb current urea imports. For this, it will also invest around $5 billion in a 2 GW electrolyzer to be powered by a 4 GW solar and wind farm.
For Adani Group, the partnership brings to it a financially strong business partner with experience in renewable energy and large-scale industrial projects globally.
"Our stake in ANIL is a major step in the implementation of our low-carbon hydrogen strategy, which aims both to decarbonize all the hydrogen consumed by our European refineries by 2030, and to make TotalEnergies a pioneer in the mass production of green hydrogen in order to be able to meet demand, which will take off by the end of the decade," explained Chairman and CEO of TotalEnergies Patrick Pouyanné. "This future production capacity of one million tonnes of green hydrogen per year will significantly contribute to TotalEnergies' ambition to bring new low-carbon molecules – biofuels, biogas, hydrogen."
TotalEnergies is already invested as a 50% stakeholder in another Adani vehicle Adani Green Energy Limited (AGEL).
India, with its non-fossil fuel energy ambition of 500 GW by 2030 and newly announced Green Hydrogen Policy of 5 million ton by 2030 is an attractive market for green hydrogen investors (see India Launches Green Hydrogen Policy).