TotalEnergies Cements ties with Adani Green energy with $444M JV

Adani Green JV: French energy major TotalEnergies further solidified its alliance with India's Adani Green Energy after its board approved the $444 million joint venture on Monday. This officially advances the two companies a step toward each other, from the preliminary announcement in September 2023 when the deal was valued at $300 million.

TotalEnergies will buy, for the first time directly, wind and solar assets developed by Adani Green in India, where the lion's share of its energy demand is still met by coal. The joint venture will focus on a portfolio of 1.15 gigawatts of solar power operational and under construction. While TotalEnergies has committed $444 million to the venture, Adani Green has not disclosed the amount it has invested in the partnership.

A TotalEnergies spokesperson confirmed the deal and said an official announcement would be made early on Tuesday. Companies have not commented on reasons for the deal value increase from an initial estimate of US$ 300 mln.

This deal represents the first significant agreement between the two companies since TotalEnergies froze its dealings with Adani Group early this year. That freeze came after a January report by U.S. short-seller Hindenburg Research accused Adani Group of improper dealings and the use of tax havens, resulting in a $150 billion loss in market value for the conglomerate.

However, TotalEnergies CEO Patrick Pouyanne has defended continuing investments by his company in Adani-a 37.4 per cent stake in Adani Total Gas and a 19.75 per cent stake in Adani Green Energy-adding that both investments remain profitable despite the decline in the share price.

TotalEnergies is largely an oil and gas player, but plans to have as many as 45 gigawatts of renewable capacity by the end of the decade. The deal was announced during an uptick in Adani Green's stock price,