Total Energies is again showing its interest in renewable energy projects of Adani Green Energy Ltd. If things go well, the multi-energy company will soon invest in Adani Group projects. This news has been shared by multiple websites but no authority has confirmed it yet. If we believe the report, Total Energies is looking forward to sealing this deal or investment as part of their drive to expand their clean energy projects portfolio. Well, this news is creating a lot of buzz and people want to know the further plan of Total Energies and their approach towards making this investment and how much the company is planning to invest.
Besides, people who are already familiar with the matter state that if this deal happens between the French Oil giant and the Adani Group then it would surely increase the presence of Total in the fast-paced energy market and it will directly or indirectly motivate the Indian company to create new such projects. Moreover, it would be the first public deal between Total Energies and an Indian renewable energy company ever since the United States short-seller level fraud accusations were made on the company. However the firm has denied being involved in such things. The case is still in the court.
As per The Economics Times, the French oil giant is planning to purchase a stake in some of the projects of Adani Green as part of their drive. However, it is yet not confirmed whether the news is true or not as this discussion was made in private and no official statements have been shared by either firm. Moreover, the anonymous source states that Total Energies could invest about $700 million in total and would like to purchase stakes in some of the projects of Adani Green. The people included that deliberations are ongoing and there are no details of any type of transaction. Representatives of both firms declined to make any comment.
We need to wait for the official announcements from the side of either firm on this subject. If this deal happens, it will deepen the ties of Total Energies with Adani Green as the French oil giant is already holding the shares in the company and known to be the second largest shareholders with a 19.75%stakes, as per data compiled by anonymous source. The French oil giant has been constantly dealing with Adani as Total looks to increase its clean-energy output, in an effort to reduce the shareholders that are looking for greater efforts to tussle with climate change. That vision dovetails with the ambition of India to transform into a net-zero carbon nation by the year 2070 and restrain its reliance on coal and oil.
Total invested around $600 million to purchase a 37.4% stake in Adani Gas Limited in 2019 which is now known as Adani Total Gas. After 3 years, in 2021, again Total purchased a 20% stake but this time in Adani Green along with 50% interest which they asked to get in the solar farms of Adani Green in operation in a deal of $2.5 billion. This investment was one of the largest foreign investments in the nation. The bet which Total made on Adani Group was fruitful and its value rose up to $10 billion by the next year. Patrick Pouyanne, the CEO of Total described the stake purchased in Adani Green as “a source of potential cash”. Both firms agreed to be in the partnership and Total was interested to invest more billions of dollars in the firm. But after the accusation of Hindenburg Research on Adani Green, the market value of the Indian company dropped down and Total held the investment.