The Adani Group, led by billionaire Gautam Adani, is reportedly in the process of securing up to $4 billion in funding to support the establishment of manufacturing facilities aimed at producing affordable, eco-friendly hydrogen, as per individuals familiar with the matter.
Adani New Industries Ltd, an entirely owned subsidiary of Adani Enterprises Ltd, is set to take the lead in fundraising efforts in collaboration with both domestic and international financial institutions, reported Bloomberg. In its preliminary stages, the company is engaged in confidential discussions with multiple potential lenders, as disclosed by individuals who have requested anonymity.
Adani's representatives did not give any response to the comment request.
In June, France's TotalEnergies SE and Adani jointly announced their intentions to allocate a substantial $5 billion investment for the production of green hydrogen and associated products in India. This strategic move comes as India, the world's third-largest contributor to carbon emissions, endeavors to reduce its carbon footprint.
Gautam Adani has previously articulated his commitment to allocating 75 per cent of the group's projected capital expenditure to green ventures. The conglomerate has outlined plans to channel a significant $20 billion of investments into renewable energy projects, the manufacturing of green components, and related infrastructure developments over the coming decade.
“Green hydrogen holds a strong promise for India’s future energy self-reliance,” Adani’s website says. “It is not too difficult to imagine a scenario where green hydrogen at a price of less than $1/kg — coupled with the projected reduction in the cost of combined cycle hydrogen turbines and fuel cells — will not only allow the country to make a transition from fossil fuels, but also free India from the debilitating financial burden of energy imports.”
Adani New Industries will secure fresh capital from Total for its projects. The initial allocation of funds will primarily support a 1 million metric tons per annum green hydrogen facility in Gujarat, with production expected to commence in 2027.
In line with Prime Minister Narendra Modi's initiative to position India as a leader in the transition to cleaner technology, tycoons like Adani and his rival Mukesh Ambani are making substantial investments in green hydrogen.
A successful project finance close would signal the ports-to-power conglomerate's resurgence in lender confidence, despite corporate fraud accusations by Hindenburg Research in January. Adani Group refuted these claims, but their bonds and shares remain below previous levels. An ongoing court-mandated investigation by India's market regulator is examining potential violations of local securities laws.