Total to Invest $300 Million in a 50:50 Joint Venture with Adani Green

The new joint venture will comprise 1,050 MW of renewable assets

September 20, 2023


TotalEnergies, a French oil and gas major, will invest $300 million to form a new 50:50 joint venture with Adani Green Energy.

The Board of Directors of Adani Green Energy approved the execution of the binding term sheet to be entered into between Adani Green Energy, Adani Green Energy Twenty-Three (AGE23L), and TotalEnergies.

The purpose of the binding term sheet is to provide for further investment of $300 million by Total and modify certain terms of its investments in AGE23L.

The new joint venture will comprise 1,050 MW of renewable assets, including 300 MW of operational assets, 500 MW of assets under construction, and 250 MW of assets under development with a blend of solar and wind power.

Both Adani Green Energy and Total will hold 50% each of the paid-up equity share capital in the new joint venture company. The two companies hold equal shares in AGE23L.

The transaction details are under discussion and subject to approvals and conditions.

Adani and Total have an agreement to maintain 50% of the paid-up equity share capital each in the joint venture. So, they pump the money whenever the portfolio increases to ensure the joint venture remains at 50:50 equity shareholding.

In 2021, Total had acquired a 20% minority interest in Adani Green Energy from Adani Group for $2.5 billion.

In February 2020, Total and Adani Green Energy had forged a deal, with Total set to acquire a 50% stake in their joint venture company. This arrangement aimed to facilitate the transfer of AGEL’s 2.1 GW of operational solar assets to the newly established joint venture. Adani Green Energy retained the remaining 50% stake in the venture.

Subsequently, in October 2020, Adani Green Energy augmented their joint venture’s portfolio by adding 205 MW of operational solar projects valued at ₹16.32 billion (~$222.9 million), increasing the joint venture’s total capacity to 2.35 GW.

Adani Green Energy was among the top five utility-scale solar project developers in 2022, according to Mercom’s India Solar Market Leaderboard 2023. The company had a market share of 11%.