TotalEnergies, Adani to Form 1,050MW Renewables JV in India

TotalEnergies SE has committed $300 million in equity investment to form an Indian joint venture (JV) with Adani Green Energy Ltd. (AGEL) targeting a wind and solar electricity portfolio of 1,050 megawatts of alternating current (MWac) in capacity.

"This portfolio will comprise of a mix of already operational (300 MWac), under construction (500 MWac) & under development assets (250 MWac) with a blend of both solar & wind power", a joint press release said Wednesday.

AGEL, the renewables unit of the Indian diversified conglomerate Adani Group, will contribute all the assets.

"Thanks to this new transaction, TotalEnergies will reinforce its strategic alliance with AGEL and support the company in becoming the Indian leader of renewable energy, with a target of 45 GW [gigawatts] renewable power capacity by 2030", the news release said.

The agreement is subject to customary closing conditions including regulatory approvals.

TotalEnergies is growing its renewables capacity as part of its efforts to get to net zero emissions by 2050. The French energy giant had 19 GW in installed capacity for renewable power generation as of July, according to the media release. TotalEnergies has set a target of hitting 35 GW in gross renewable power generation capacity by 2025 and 100 GW by 2030.

"TotalEnergies has been actively developing, notably through AGEL, its presence in the Indian renewable power market, a very interesting market by its size and growth and the early development of a merchant market", TotalEnergies chief executive Patrick Pouyanne said in a statement.

Adani chair Gautam Adani commented, "The investment will further strengthen the pivotal role played by AGEL in India’s glide path to decarbonization".

After embarking on their first energy partnership in 2018 with the formation of Adani Total Private Ltd., TotalEnergies and Adani expanded their collaboration into renewables with TotalEnergies acquiring a 20 percent minority interest in AGEL and a 50 percent stake in AGEL’s solar assets, as jointly announced January 18, 2021.

LNG Cooperation

Earlier TotalEnergies said the Dhamra LNG terminal in the Indian state of Odisha, which it co-owns with Adani, had received its first liquefied natural gas (LNG) cargo paving the way for startup.

“This delivery enables the gradual commissioning of the terminal, which is expected to start commercial operations at the end of May 2023”, it said in a press release April 17.

“With regasification capacity of 5 million metric tons of LNG per year, the Dhamra LNG terminal adds more than 10 percent to India’s regasification capacity, strengthening the country’s position as the world's fifth largest LNG importer and allowing it to increase the share of natural gas in its energy mix from 8 percent to 15 percent by 2030 to reduce its carbon intensity”, said the announcement of the consignment from Qatar.

The South Asian country imported 23.3 million metric tons of LNG in the last five years, based on data on the website of the Petroleum and Natural Gas Ministry’s Petroleum Planning and Analysis Cell.  India imported 23.4 million metric tons 2021-22, nearly doubling its annual LNG imports from around a decade ago, according to the data. 

India has been among the world’s top four LNG importers along with China, Japan and Europe. The International Energy Agency in a June 2019 report forecast India’s LNG imports would climb to over 1.9 trillion cubic feet (54 billion cubic meters) next year. 

India is aiming to grow the deployment of LNG, compressed natural gas, ethanol and biodiesel as alternative fuels in its transition to clean energy, according to its net zero roadmap deposited to the United Nations last year.

The Dhamra project is owned and operated by the 50-50 joint venture between TotalEnergies and Adani formed 2018.

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