France's TotalEnergies is near to an investment of $300 million in a new joint venture company with Adani Green Energy. The investment will house around 1 GW of renewable energy projects.
The joint venture will be equally owned by the two companies and will hold a mix of solar and wind power assets. The assets will comprise 250 MW of operational capacity, 500 MW of under-construction facilities and 250 MW of planned projects, people aware of the matter told ET.
The development comes as a shift in the French energy major's stance after it put on hold a $4 billion green hydrogen project with the Adani Group in February, following the report published by Hindenburg Research on the group.
Hindenburg had alleged Adani Group that it manipulated stock prices of listed companies through offshore entities and undisclosed related party transactions. The Adani Group denied all the allegations.
Where TotalEnergies will put in a $300 million equity investment into the project, Adani Green will contribute with the renewable energy assets. TotalEnergies will also contribute 50% to the capital investment required for the 750 MW of under-construction and upcoming assets.
The discussions between the two companies have progressed to an advanced stage and the joint venture is likely to be announced in a few days.
TotalEnergies holds a 19.75% stake in Adani Green Energy, and is the second largest shareholder after the promoters who hold about 56.27%. TotalEnergies and the Adani Group also have an existing listed joint venture, Adani Total Gas.
Also Read: TotalEnergies Plans To Invest In Adani Green's Projects.
In July, the renewable energies arm of the Adani Group had said it plans to raise Rs 12,300 crore from a public sale of shares to institutional investors.
