TotalEnergies SE To Invest $300 Million In New Joint Venture With Adani Green

As per the deal, TotalEnergies will invest (either directly or through its affiliates) $300 million to form a new Joint Venture Company with Adani Green Energy Twenty Three Ltd in equal partnership.

Adani Green Energy and France’s TotalEnergies SE have entered into a 'binding term sheet' to form a new joint venture (JV) company in a 50:50 partnership, Adani Green Energy Ltd said in an exchange filing. As per the deal, TotalEnergies will invest (either directly or through its affiliates) $300 million to form a new Joint Venture Company with Adani Green Energy Twenty Three Limited (AGE23L). 

"The purpose of a binding term sheet is to provide further investment by Total (either directly or through its affiliates) of $300 million to form a new 50:50 Joint Venture Company with the company and modify certain terms of its investment in AGE23L," the exchange filing said.

The new JV will house 1,050 MWac portfolio, which will comprise a mix of already operational (300 MWac), under construction (500 MWac), and under development assets (250 MWac) with a blend of both, solar and wind power, Adani Green Energy informed.

The company also said that the transaction details are under discussion and subject to customary approvals and conditions. The parties will discuss and agree to these in the definitive agreements and, once agreed, these shall be disclosed in compliance with the requirements under applicable law. 

Notably, Total already holds about 19.75 per cent shares in the company through its affiliate entities.

Earlier, it was reported that the French energy firm 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, Bloomberg reported previously citing sources.

At 15.00 PM, Adani Green's stocks were trading lower. The shares were trading at Rs 1,000 apiece on the BSE, down 0.41 per cent from the last day's close.

In 2019, Total acquired a 37.4 per cent stake in Adani Gas Ltd. for $600 million, now known as Adani Total Gas. In 2021, they invested $2.5 billion for a 20 per cent stake in Adani Green and 50 per cent ownership in some of its operational solar farms. By 2022, the value of Adani Green surged to $10 billion, as per the reports.