French oil giant TotalEnergies SE is in talks to invest in renewable energy projects developed by Adani Green Energy Ltd., sources privy to the development told news agency Bloomberg. This move is potentially the first public deal between the French firm and Gautam Adani since US-based short-seller Hindenburg levelled fraud charges against Adani Group in January this year.


According to the sources, Total is looking to buy stakes in some of Adani Green’s projects as part of its drive to expand its portfolio of clean energy projects. The French group could invest about $700 million in total into the projects, the people told Bloomberg. Deliberations are ongoing and there’s no certainty for a transaction, the people said. Representatives for Adani and Total declined to comment.


This deal would increase Total’s presence in the fast-growing Indian energy market, while giving Adani Green more means to develop new renewable energy projects. It would also see Total deepen its ties with Adani Green, which it’s already the second largest shareholder of with a 19.75 per cent stake, according to data compiled by Bloomberg.


Total has frequently partnered with Adani as the French giant looks to boost its clean-energy output, in an effort to mollify shareholders demanding greater efforts to fight climate change. That aspiration dovetails with India’s ambitions to become a net-zero carbon nation by 2070 and curb its reliance on oil and coal.


In 2019, Total spent $600 million to buy a 37.4 per cent stake in Adani Gas Ltd., now called Adani Total Gas. In 2021, it bought a 20 per cent stake in Adani Green as well as a 50 per cent interest in some of Adani Green’s solar farms in operation in a $2.5 billion deal that was among the largest foreign investments in India. The bet on Adani Green worked well for Total as its value soared to $10 billion in 2022 when Chief Executive Officer (CEO) Patrick Pouyanne described the stake as “a source of potential cash.” The duo were looking to partner up and fund billions of dollars worth of green hydrogen development in India.