PARIS: French oil giant Total said Monday that it would pay $2.5 billion for a 20 per cent stake in India’s Adani Green Energy Limited (AGEL), a major solar energy producer, as it diversifies away from fossil fuels into renewables.
Along with the 20 per cent direct stake comes a 50 per cent holding in a portfolio of solar energy assets operated by AGEL, part of the Adani group, Total said in a statement.
The two companies have had a partnership accord since 2018, when Total acquired a stake in Adani Gas Limited.
India relies heavily on coal but has been moving into renewables and natural gas in an effort to reduce damaging pollution levels and costs.
Total described AGEL as the world’s biggest solar energy developer.
It operates 3.0 gigawatts of renewable energy assets, with another 3.0 GW under construction and 8.6 GW in development.
AGEL is aiming for 25 GW of renewable energy capacity by 2015.
“Taking a stake in AGEL is a major step in the strategy put in place with Adani in renewable energy in India,” Total’s chief executive Patrick Pouyanne said in the statement.
“Given the size of its market, India is the right country to put in motion our strategy for energy transition based on the two pillars of solar and natural gas,” he said.