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TotalEnergies puts Adani Green Hydrogen partnership on hold

Feb 10, 2023

By: BlinkX Research Team

In terms of global partnerships, the Adani group may have faced its first major casualty. In the aftermath of the audit launched by the US based short-seller, Hindenburg, into the business practices of Adani Group; Total Energies decided to put its Green Hydrogen joint venture with Adani group on hold. Total Energies is a French energy conglomerate focused on alternate energy. While, the deal is yet to be signed, it was supposed to be the feather in the cap of the Adani group as it went about chasing its green energy ambitions. 

TotalEnergies was all set to become Adani’s largest investors but decided to push the pause button on $50 billion green hydrogen project. As on date, the deal had only reached a verbal agreement, and there was no contractual work carried out as yet. However, considering the prestigious nature of the deal and the high stakes involved, it was almost as good as done. TotalEnergies was to take a 25% equity in Adani New Industries Ltd (ANIL); the flagship company investing $50 billion into green hydrogen ecosystem over next 10 years. 

But the relationship between the two runs much deeper, so it is not like the deal in in danger. For instance, TotalEnergies already holds a $3.1 billion exposure to the Adani group. However, considering the sensitivity of the issue and the say events have been unfolding of late, they have decided to predicate the future course of action on the outcome of the audit. TotalEnergies will not lose out anything substantial by virtue of the deal being stalled or cancelled, due to no contractual framework having been set up. However, it could be a temporary setback to the grand green plans of the Adani group.

For the Adani group, this is critical as TotalEnergies was their largest stakeholders; apart from being a champion of their green hydrogen vision. For now, Adani group is focusing on prepaying debt and restoring the lost sheen. However, for a group known for its speed and aggression, it cannot really be waiting in the side-lines for far too long. That is just not the Adani group DNA.