French company TotalEnergies agrees to buy 25% stake in Adani New Industries

Business conglomerate Adani Group and France's TotalEnergies have entered into a new agreement to jointly create the world's largest green hydrogen system.

As part of this strategic tie-up, TotalEnergies will acquire 25% minority interest in Adani New Industries Ltd (ANIL) from Adani Enterprises Ltd (AEL), according to a media statement by the Indian establishment.

ANIL aims to invest over $50 billion over the next 10 years in green hydrogen and its associated ecosystem.

In the initial phase, the company will develop green hydrogen production capacity of 1 million tonne per annum before 2030.

"The strategic value of the Adani-TotalEnergies relationship is immense at both the business level and ambition level," said Gautam Adani, chairman of Adani Group.

The value of the deal and other financial details have not been disclosed.

The partnership builds on the synergies between the two platforms.

While Adani is expected to bring in its deep knowledge of the Indian market, rapid execution capabilities, operations excellence and capital management philosophy to the partnership, TotalEnergies will bring to the table its understanding of the global and European market, credit enhancement and financial strength to lower the financing costs, and expertise in underlying technologies.