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Adani and Total partner in $5 billion green hydrogen project | Business and Economics News

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Green hydrogen projects will help India reduce its dependence on oil and coal and reduce its emissions.

By Bloomberg

French giant TotalEnergies SE and Indian billionaire conglomerate Gautam Adani plan to invest $5 billion to produce green hydrogen and related products in India as the world’s third-largest polluter seeks to decarbonise.

Total will buy a 25% stake in Adani New Industries Ltd. for an undisclosed amount, according to an exchange filing from Adani Enterprises Ltd. tuesday. Adani New Industries is a private company of Adani Enterprises, the flagship company of the coal-ports conglomerate. Shares of Adani Enterprises were trading up nearly 6% in Mumbai as of 11:53 a.m. local time.

The purchase would be another boost for Adani, who has been looking for global investors and has engaged spend up to $70 billion by 2030 in the green energy value chain. Green hydrogen projects will also help India – the world’s third largest carbon emitter – reduce its dependence on oil and coal as it pursues the goal of being net zero carbon by 2070. .

Total is increasing clean energy production while limiting sales of petroleum products, as shareholders demand greater efforts to fight climate change. He has previously associates with Adani to invest in natural gas and renewable energy in India, where the government this year plans unveiled – and incentives – for massive hydrogen growth. In 2019, Total acquired a 37.4% stake in Adani Gas Ltd. — now called Adani Total Gas Ltd. — and last year spent $2.5 billion by acquiring 20% ​​of Adani Green Energy Ltd. and a 50% stake in a portfolio of solar assets.

Green hydrogen, produced from water and renewable energy, is expected to grow rapidly this decade, and global production could increase 18-fold to around 11.6 million tonnes per year by 2030 with strong political support, according to BloombergNEF.

Potential path

It also offers a potential pathway to decarbonize heavy industries such as steel, cement production and fertilizers. While the fuel is still far from commercially viable, India is aiming to produce 5 million tonnes by the end of the decade.

Adani New Industries will start by investing about $5 billion to build 2 gigawatts of hydrogen-producing electrolyzers powered by a 4 gigawatt solar and wind farm to make urea to replace fertilizer imports, said Total in a press release. The company ultimately plans to target 1 million tonnes of green hydrogen production per year by 2030, backed by 30 gigawatts of clean energy capacity.

Other big producers could include Australian billionaire Andrew Forrest’s Fortescue Future Industries, which is targeting initial production of 15 million tonnes per year of green hydrogen by 2030 from a network of global projects. Vestas Wind Systems A/S, InterContinental Energy and other partners aim to produce around 1.8 million tonnes of fuel per year and begin exports as early as 2027 from the Asian Renewable Energy Hub in Western Australia.