Adani's New Tie-Up To "Produce World's Least Expensive" Green Hydrogen

Adani, India's fastest growing diversified business portfolio, and energy supermajor TotalEnergies of France, have entered into a new partnership to jointly create the world's largest and least expensive green hydrogen ecosystem.

TotalEnergies said on Tuesday it will acquire a 25 per cent stake in Adani New Industries Limited (ANIL), as part of a deal to develop a green hydrogen ecosystem with the Indian conglomerate in the Asian country.

Both Adani and TotalEnergies are pioneers in energy transition and clean energy adoption, and this joint energy platform further strengthens the public ESG commitments made by both companies.

ANIL's ambition is to invest over $50 billion over the next 10 years in green hydrogen and associated ecosystems. In the initial phase, ANIL will develop a green hydrogen production capacity of one million tons per annum before 2030.

"The strategic value of the Adani-TotalEnergies relationship is immense at both the business level and the ambition level. In our journey to become the largest green hydrogen player in the world, the partnership with TotalEnergies adds several dimensions that include R&D, market reach and an understanding of the end consumer," said Gautam Adani, Chairman of Adani Group.

This fundamentally allows us to shape the market demand. This is why I find the continued extension of our partnership to hold such great value. Our confidence in our ability to produce the world's least expensive electron is what will drive our ability to produce the world's least expensive green hydrogen. This partnership will open up a number of exciting downstream pathways," he added.

TotalEnergies, one of the world's biggest oil and gas producers, faced criticism from climate activists and has been moving into the renewable energy sector and diversifying away from hydrocarbon-centred activities in recent years.

In the initial phase, Adani New Industries plans to develop green hydrogen production capacity of one million metric tons per year by 2030, TotalEnergies said.

"TotalEnergies' entry into ANIL is a major milestone in implementing our low-carbon hydrogen strategy," Chairman and Chief Executive Officer Patrick Pouyanne said.

Apart from decarbonising hydrogen used in its European refineries by 2030, Pouyanne said the French energy major also plans to pioneer the mass production of green hydrogen as it expects that market to take off by the end of this decade.

In a tweet, billionaire Gautam Adani said, the venture will aim to build an ecosytem to produce the world's least expensive green hydrogen.