Adani Group to raise $4bn to fund green hydrogen plans
Billionaire Gautam Adani's Adani Group is seeking to secure up to $4 billion in funding to establish manufacturing facilities for affordable green hydrogen. Adani New Industries Ltd, a fully owned subsidiary of Adani Enterprises Ltd, will spearhead the fundraising efforts, engaging in preliminary discussions with various domestic and international banks. A timeline for the same has not been disclosed.
Collaboration with TotalEnergies SE and focus on green businesses
In June, Adani and France's TotalEnergies SE revealed their intention to invest $5 billion in the production of green hydrogen and related products in India. Gautam Adani has declared that 75% of the group's anticipated capital expenditure will be directed toward green businesses. This will include a planned investment of $20 billion over the next ten years in renewable energy, green component manufacturing, and associated infrastructure. This initiative is in line with India's objectives to decarbonize and minimize pollution.
Green hydrogen's potential for India's energy self-reliance
Adani and Mukesh Ambani are investing in green hydrogen as Prime Minister Narendra Modi seeks to position India at the forefront of the shift toward cleaner technologies. As stated on Adani's website, "Green hydrogen holds a strong promise for India's future energy self-reliance." The company envisions a future where green hydrogen costs less than $1/kg, enabling India to transition away from fossil fuels and alleviate the financial strain of energy imports.
First project and regaining lender support
Adani New Industries will independently raise funds from Total for its green hydrogen ventures. One of the initial projects includes a one million metric tons per annum green hydrogen facility in Gujarat, with production slated to commence in 2027. A successful project funding close would indicate that the Adani Group is regaining lender support following corporate fraud allegations by Hindenburg Research in late January, which the group vehemently denied. A court-ordered investigation by India's market regulator is currently in progress.
