French integrated energy and petroleum company, TotalEnergies has recently joined forces with Adani Enterprises Limited (AEL) to acquire a 25% interest in Adani New Industries Limited (ANIL).
Under this agreement, ANIL will be the exclusive platform for AEL and TotalEnergies for producing and commercializing green hydrogen in India and will be targeting the production of one million metric tons of green hydrogen each year by 2030.
With this, the company plans to gain around 30 gigawatts (GW) of new renewables power generation capacity as its first breakthrough moment.
ANIL, for controlling the green hydrogen production costs, will be focusing on the value chain, from equipment manufacturing required to generate renewable power and generate green hydrogen to the production of green hydrogen itself and its revolution into derivatives, including methanol and nitrogenous fertilizers, both for export and the domestic market.
Furthermore, ANIL plans to develop a project for producing 1.3 Mtpa of urea derivative from green hydrogen for the Indian market as a replacement for the current imports of urea. It is also planning to invest around $5 billion in a 2 GW electrolyzer powered by renewable energy from a 4 GW solar and wind farm.
The collaboration is based on the great complementarity of both companies. The Adani portfolio will contribute to its deep expertise in the Indian markets, operations and capital management excellence, and implementing capabilities.
Meanwhile, TotalEnergies will be offering its exhaustive understanding of the global markets and proficiency in renewable technologies and large-scale industrial projects, enabling ANIL to lower its financing cost and financial strength.
The partners' strengths will aid ANIL in delivering the major green hydrogen ecosystem in the world, empowering the consumer with the lowest green hydrogen cost. Moreover, the investment in ANIL signifies another major step in the strategic collaboration between TotalEnergies and Adani Group, India's leading energy and infrastructure platform.
Source Credit - https://totalenergies.com/media/news/press-releases/india-totalenergies-and-adani-join-forces-create-world-class-green