TotalEnergies and Adani Green form $300 million joint venture
TotalEnergies SE will invest $300 million in a 50:50 joint venture with Adani Green Energy Twenty Three Limited (AGE23L), according to a regulatory filing by the Adani Group on September 20. This joint venture will manage a 1,050 MWac portfolio, including operational (300 MWac), under construction (500 MWac), and under development (250 MWac) assets involving both solar and wind power. Both companies will hold a 50% stake each in the joint venture, with specific transaction details currently being negotiated.
Adani Green's stock performance and TotalEnergies' existing stake
Following the announcement of the new joint venture, Adani Green's stock edged lower at the stock market. The shares were trading at Rs. 1,000.55 apiece on the BSE at 3:05pm on September 20, down 0.45% from the previous day's close. TotalEnergies, through its affiliate entities, currently holds a 19.75% shareholding in Adani Green. This new investment comes after sources informed Bloomberg that the French company could invest up to $700 million in some of Adani Green's projects.
CEO Patrick Pouyanne's comments on TotalEnergies' investments
In February this year, TotalEnergies' Chief Executive Officer Patrick Pouyanne spoke to Bloomberg about his company's $3.1 billion investment in Adani Total Gas and Adani Green, stating that it was healthy. He emphasized that both companies have assets and revenue, indicating confidence in their potential for growth and profitability. The latest investment in the joint venture further solidifies TotalEnergies' commitment to expanding its presence in India's renewable energy sector.
Future plans for the joint venture and definitive agreements
The binding termsheet provides for further investment by TotalEnergies, either directly or through its affiliates, to form the new 50:50 joint venture company with Adani Green and modify certain terms of its investment in AGE23L. The transaction will be undertaken at an arms' length price, with both companies discussing and agreeing on the details in the definitive agreements. This partnership aims to strengthen the renewable energy portfolio and contribute to India's transition towards cleaner energy sources.
