Total SA is paying $2.5 billion for a share in India's Adani Green Energy Ltd. (AGEL) and its solar power assets, in what the French company said was its biggest investment yet in renewables.
As it furthers its strategic shift from fossil fuel, the deal will give Total a 20% stake in AGEL and a seat on its board, as well as a 50% share in the Indian firm's portfolio of solar power assets.
AGEL is controlled by Indian conglomerate Adani Group and has a market capitalization of about 1.483 trillion Indian rupees (US$20.25 billion).
Growing investor pressure has spurred Europe's top energy companies to outline plans to curb emissions and boost renewable energy output.
On Twitter, Total CEO Patrick Pouyanne said the deal with Adani "represents the biggest investment in renewables ever made by Total. It's a further demonstration of our transformation strategy. By 2020, Total will be in the top 5 for renewable energy."
Total's shares dipped 0.7% in early trading, as oil prices fell, but investment bank Barclays said Total was one of its top picks, with an "overweight" rating.
AGEL is targeting 25 gigawatts (GW) of renewable power generation by 2025, and Total said AGEL would make an important contribution to meeting Total's goal of 35 GW of gross production capacity from renewable sources by 2025 from around 9 GW now.
Last week, Total became the first major energy company to quit the main U.S. oil and gas lobby, the American Petroleum Institute, citing disagreements over the lobby's climate policies and support for easing drilling regulations.
(US$1 = 73.2320 Indian rupees)
Recommended Reading
E&P Highlights: Aug. 19, 2024
2024-08-19 - Here’s a roundup of the latest E&P headlines including new seismic solutions being deployed and space exploration intersecting with oil and gas.
Breakthroughs in the Energy Industry’s Contact Sport, Geophysics
2024-09-05 - At the 2024 IMAGE Conference, Shell’s Bill Langin showcased how industry advances in seismic technology has unlocked key areas in the Gulf of Mexico.
International OFS Firm HMH Plans to IPO, Activate in M&A
2024-08-13 - The firm is a 50/50 joint venture of Baker Hughes and Akastor ASA formed in 2021 to include brands such as Hydril and Vetco Gray as well as Wirth and Maritime Hydraulics.
E&P Highlights: July 29, 2024
2024-07-29 - Here’s a roundup of the latest E&P headlines including Energean taking FID on the Katlan development project and SLB developing an AI-based platform with Aker BP.
Shell Offshore Takes FID on Waterflood Project in GoM
2024-08-14 - Shell Offshore’s waterflood secondary recovery process involves injecting water into the reservoir formation to extract oil.