Total acquires 20 percent stake in AGEL for $2.5bn
Total has acquired a 20 percent minority interest in Adani Green Energy Limited (AGEL) from India's Adani Group.
It is another strong signal from the French Energy group of its intention to grow its global renewable energy profile. AGEL, which started in 2015, is billed as the "world's largest single location solar power project" with over 14.6GW of contracted renewable capacity and operating capacity of 3GW.
With another 3GW under construction and 8.6GW under development, the company aims to achieve 25GW of renewable power generation by 2025.
The investment in AGEL is another step in the strategic alliance between Adani Group and Total, which covers investments in LNG terminals, gas utility business, and renewable assets across India.
In 2018, Total and Adani embarked on the energy partnership with investment by Total in Adani Gas Limited, city gas distribution business, associated LNG terminal business and gas marketing business.
During the development of this partnership, it was further agreed that Total and Adani shall continue this alliance into the wider renewable energy space. Total and Adani agreed the acquisition of a 50 percent stake in a 2.35GWac portfolio of operating solar assets owned by AGEL and a 20 percent stake in AGEL for a global investment of US$2.5 billion.
Along with the minority interest in AGEL, Total will have a seat on the Board of Directors of the company.
Patrick Pouyanné, Chairman and CEO of Total, said: "Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties. Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas."
Adani Group Chairman, Gautam Adani, added that it has a "shared vision" of developing renewable power at affordable prices to enable a sustainable energy transformation in India. "We look forward to working together towards delivering India’s vision for 450GW renewable energy by 2030," he said.