French oil group Total has reached an agreement to acquire a 20% stake in Adani Green Energy Limited (Agel), the renewables subsidiary of Indian conglomerate Adani Group, according to the French company, which will also have a seat on the company's board and control of 50% of the solar asset portfolio owned by Agel.
In 2018, Total and Adani embarked on an energy partnership following Total's investments in Adani Gas Limited, as well as in the Liquid Natural Gas, LNG and associated terminals and gas marketing businesses.
As part of the development of this partnership, it was further agreed that Total and Adani would continue this alliance in the renewable energy field, including the acquisition by the French company of 50% of a portfolio of solar assets owned by Agel with 2.35 gigawatts and a 20% stake in this renewables subsidiary, in which Total would also obtain a seat on the board.
"This agreement is an important step in our alliance with the Adani Group in India," said Patrick Pouyanné, Total's Chairman and CEO, for whom the company's entry into Agel represents "an important milestone" in Total's strategy for the renewable energy business in India.
"Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas," he added.