Adani Big Deal: Preparing to build the world’s largest green hydrogen ecosystem, Adani did this big deal
India’s Adani Group and France’s Total Energy have come together to jointly create the world’s largest green hydrogen ecosystem. A report released in this regard said that Adani New Industries Limited will invest US $ 50 billion in green hydrogen over the next 10 years. It will develop green hydrogen production capacity of one million tonnes per annum in the initial phase before 2030.
Big hopes from partnership
According to the report, in this strategic partnership, Total Energy will acquire 25 per cent minority interest in Adani New Industries Ltd (ANIL) from Adani Enterprises Ltd (AEL). This new partnership focused on Green Hydrogen is expected to transform the energy landscape in India and globally. Adani and Total Energy are both at the forefront of energy transition and clean energy adoption, and this joint energy platform further strengthens the public ESG commitments made by both companies. ANIL’s ambition is to invest more than $50 billion in green hydrogen and related ecosystems over the next 10 years. In the initial phase, ANIL will develop green hydrogen production capacity of one million tonnes per annum before 2030.
multi-way agreement
Commenting on the agreement, Gautam Adani, Chairman, Adani Group, said that the strategic value of the Adani-Total Energies relationship is enormous, both at the business and ambition levels. In our journey to become the largest green hydrogen player in the world, the partnership with Total Energies combines multiple dimensions including R&D, market access and understanding of the end consumer. This fundamentally allows us to shape market demand. It is for this reason that I see the continued expansion of our alliance of such special significance. Our belief in our ability to produce the world’s least expensive electron will drive our ability to produce the world’s least expensive green hydrogen. This partnership will open up many exciting downstream avenues.
Market expected to rise
Patrick Payne, Chairman and CEO of Total Energies, said, “Total Energies’ entry into ANIL is a major milestone in implementing our renewable and low-carbon hydrogen strategy, where we aim to reduce not only the hydrogen used at our European refineries by 2030 but also want to decarbonize, but also at the forefront of mass production of green hydrogen to meet demand. He said that the market will pick up 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 assessment of India’s abundant low-cost renewable power potential.
In this way the target will be found
This partnership is based on the extraordinary synergy between the two platforms. While Adani, with its deep understanding of the Indian market, will handle the Rapid Execution Capability, Operational Excellence, and Capital Management aspects of this partnership, Total Energies with its deep understanding of the global and European markets will be responsible for reducing credit growth and financing costs. To enhance financial strength and bring expertise in the required technologies. The complementary strengths of the partners will help ANIL to provide the largest green hydrogen ecosystem in the world, which in turn will provide the lowest cost of green hydrogen to the consumer and help accelerate the global energy transition.
