Total SE (NYSE:TOT) announced plans to acquire a 20% interest in world's biggest solar developer, Adani Green Energy Limited, from Adani Group.
Total also will take a 2.35 GW portfolio of operating solar assets owned by Adani Green, as well as a seat on the company's board.Total says the partnership will help reach its objective of reaching 35 GW of gross production capacity from renewable sources by 2025, up from ~7 GW last year.
Adani has 54 wind and solar projects in operation across India, including one of the world's largest solar projects in Kamuthi. The deal is the third in a week for Total in the renewables area, following the acquisitions of a French biogas producer and a stake in a large U.S. solar portfolio.
This is the third partnership between Total and the Adani group. In 2019, Total had acquired 37.4% in Adani Gas and 50 per cent in the group’s Dhamra LNG project. The JV entailed developing various regasification terminals, including Dhamra LNG, and a retail network of 1,500 service stations over a period of 10 years.
Last year, Total and AGEL created a 50-50 joint venture at an enterprise value of Rs 17,385 crore, to which AGEL would transfer its operational solar assets. The total operating renewable portfolio under the JV stands at 2.3 GW.
TOT shares gained 56 cents, or 1.3%, to $44.79.
