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Total eyeing 50:50 JV with Adani Green – EQ

Total eyeing 50:50 JV with Adani Green – EQ


France’s TotalEnergies is close to investing about $300 million in a new joint venture company with Adani Green Energy that will house around 1 GW of renewable energy projects, said people in the know.

It will be an equally owned joint venture between the two companies and will hold a mix of solar and wind power assets, the people said. The assets will comprise 250 MW of operational capacity, 500 MW of under-construction facilities and 250 MW of planned projects.

The development marks a shift in the French energy major’s stance since it put on hold a $4 billion green hydrogen project with the Adani Group in February after Hindenburg Research published a report on the group.

50% of capital investment

Hindenburg had accused the Adani Group of stock price manipulation of listed companies through offshore entities and undisclosed related party transactions. The Adani Group has denied all allegations.

While TotalEnergies will put in a $300 million equity investment into the project, Adani Green will contribute with the renewable energy assets, the people said, requesting not to be identified as the matter is private. TotalEnergies will also contribute 50% to the capital investment required for the 750 MW of under-construction and upcoming assets.

The discussions between the two companies have reached an advanced stage and the joint venture is likely to be announced in a few days, the people said.

The Adani Group and TotalEnergies did not immediately respond to ET’s queries sent on Tuesday evening.

TotalEnergies has a 19.75% stake in Adani Green Energy and is the second largest shareholder after the promoters who hold about 56.27%. TotalEnergies and the Adani Group also have an existing listed joint venture, Adani Total Gas.

Shares of Adani Green closed 0.16% lower at Rs 1,004.55 Monday on the BSE. Markets were closed Tuesday on account of Ganesh Chaturthi.

The stock has lost over 45% since the beginning of the year, but has climbed nearly 130% since hitting a 52-week low of Rs 439.35 in late February after the Hindenburg report.

In July, the renewable energies arm of the Adani Group said it will be raising Rs 12,300 crore from a public sale of shares to institutional investors.

Source: PTI
Anand Gupta Editor - EQ Int'l Media Network