Adani Green Energy forms renewables JV with TotalEnergies in India

29 December 2023
Adani Green Energy forms renewables JV with TotalEnergies in India

Adani Green Energy, a subsidiary of Indian conglomerate Adani Group, has formed a joint venture (JV) with TotalEnergies Renewables Singapore, encompassing 1GW portfolio of energy projects in India.

TotalEnergies has joined Adani’s Adani Renewable Energy Nine Limited (ARE9L), acquiring a 50% stake.

Agreement for the JV was signed on 26 December after securing approval from shareholders of Adani.

The French oil and gas giant is investing $300m for the stake in ARE9L.

The two companies have also amended the existing agreement for Adani Green Energy Twenty Three Limited (AGE23L). TotalEnergies invested around Rs40.13bn ($490m) by subscribing to compulsorily convertible debentures.

The new JV joint venture comprises a portfolio of mix of operational, under-construction, and under-development assets including a 300MW hybrid operating project, a 500MW solar project under construction, and a 250MW solar project under development.

By forming the JV, Adani can unlock capital for future growth while retaining control over its assets.

TotalEnergies has also committed to further invest in the JV through additional funds as the projects are developed further.

The amount of further investment is subject to necessary approvals and will be determined based on the actual project costs.

This joint venture reinforces the strategic alliance between the two companies.

For Adani, it is a strategic move that aligns with its goal to achieve a capacity of 45GW by 2030.

Adani and TotalEnergies signed an agreement to form the JV in September this year.

TotalEnergies through its subsidiaries, already owns nearly 19.75% stake in the company.

Earlier this month, Adani secured $1.36bn in funding to support 2.16GW renewable project in Gujarat.

The senior debt facility, which was provided by eight international banks, was a follow-on funding expanding its construction financing framework to $3bn since the initial financing was secured in March 2021.

to
TOP