REG-TotalEnergies SE India: TotalEnergies and Adani Join Forces to Create a World-Class Green Hydrogen Company

TotalEnergies SEAnnouncement

14/06/2022 07:00

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India: TotalEnergies and Adani Join Forces to Create a World-Class Green
Hydrogen Company

 

TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) has entered into an agreement
with Adani Enterprises Limited (AEL) to acquire a 25% interest in Adani New
Industries Limited (ANIL). ANIL will be the exclusive platform of AEL and
TotalEnergies for the production and commercialization of green hydrogen in
India. ANIL will target a production of one million metric tons of green
hydrogen per year (Mtpa) by 2030, underpinned by around 30 gigawatts (GW) of
new renewable power generation capacity, as its first milestone.

In order to control green hydrogen production costs, ANIL will be integrated
along the value chain, from the manufacturing of equipment needed to generate
renewable power and produce green hydrogen, to the production of green
hydrogen itself and its transformation into derivatives, including nitrogenous
fertilizers and methanol, both for the domestic market and export. To start
with, ANIL intends to develop a project to produce 1.3 Mtpa of urea derived
from green hydrogen for the Indian domestic market, as a substitution to
current urea imports, and will invest around $5 billion in a 2 GW electrolyzer
fed by renewable power from a 4 GW solar and wind farm.

This partnership is based on the remarkable complementarity of the two
companies. Adani's portfolio will contribute its deep knowledge of the Indian
market, execution capabilities, and operations and capital management
excellence. TotalEnergies will offer its thorough understanding of the global
markets, expertise in renewable technologies and large-scale industrial
projects, and financial strength, enabling ANIL to lower its financing cost.
The partners' complementary strengths will help ANIL deliver the largest green
hydrogen ecosystem in the world, which will enable the lowest green hydrogen
cost to the consumer.

The investment in ANIL marks another major step in the strategic alliance
between TotalEnergies and Adani Group – India’s leading energy and
infrastructure platform – whose operations across India include LNG
terminals, gas utility business, renewable power generation, and now green
hydrogen production. It will amplify the key role that TotalEnergies and Adani
intend to play in the energy transition, and in helping India decarbonize its
mobility, industry, and agriculture, while also contributing to the
country’s energy independence.

Speaking as the deal was signed, Patrick Pouyanné, Chairman and CEO of
TotalEnergies, said: “TotalEnergies’ entry into ANIL is a major milestone
in implementing our low carbon hydrogen strategy, where we want not only to
decarbonize the hydrogen used in our European refineries by 2030, but also to
pioneer the mass production of green hydrogen to meet demand, as the market
will take off by the end of this decade. We are also very pleased with this
agreement, which further strengthens our alliance with the Adani Group in
India and contributes to the valorization of India’s abundant low-cost
renewable power potential. This future production capacity of 1 Mtpa of green
hydrogen will be a major step in increasing TotalEnergies’ share of new
decarbonized molecules – including biofuels, biogas, hydrogen, and e-fuels
– to 25% of its energy production and sales by 2050.”

Adani Group Chairman Gautam Adani said: “The strategic value of the
Adani-TotalEnergies relationship is immense at both the business level and the
ambition level. In our journey to become the largest green hydrogen player in
the world, the partnership with TotalEnergies adds several dimensions that
include R&D, market reach and an understanding of the end consumer. This
fundamentally allows us to shape market demand. This is why I find the
continued extension of our partnership to hold such great value. Our
confidence in our ability to produce the world’s least expensive electron is
what will drive our ability to produce the world’s least expensive green
hydrogen. This partnership will open up a number of exciting downstream
pathways.”

In 2018, TotalEnergies and Adani Group embarked on an energy partnership with
the development of a joint LNG business – from regas terminals to LNG
marketing – and an investment by TotalEnergies in Adani Total Gas Limited, a
city gas distribution business. In 2020, TotalEnergies and Adani Group
deepened their relationship with the acquisition by TotalEnergies of a 20%
minority interest in Adani Green Energy Limited (AGEL), then the largest solar
developer in the world, along with a 50% stake in a 2.35 GWac(1) portfolio of
operating solar assets owned by AGEL, for a total investment of $2.5 billion.

***

TotalEnergies and renewable & low-carbon hydrogen

TotalEnergies is convinced that renewable and low-carbon hydrogen will play a
major role in the energy transition. The Company is working with its suppliers
and partners to decarbonize all the hydrogen used in its European refineries
by 2030. This represents a reduction in CO(2) emissions of 3 million tons per
year. Further out, TotalEnergies aims to pioneer the mass production of
renewable and low carbon hydrogen to meet demand for hydrogen fuel as soon as
the market takes off, notably to help decarbonize heavy transport. The
renewable hydrogen production capacity currently under development in Europe
and India will contribute to TotalEnergies' ambition to increase new molecules
to 25% of its energy production and sales by 2050 – including biofuels,
biogas, hydrogen, and e-fuels.

About TotalEnergies

TotalEnergies is a global multi-energy company that produces and markets
energies: oil and biofuels, natural gas and green gases, renewables and
electricity. Our more than 100,000 employees are committed to energy that is
ever more affordable, cleaner, more reliable and accessible to as many people
as possible. Active in more than 130 countries, TotalEnergies puts sustainable
development in all its dimensions at the heart of its projects and operations
to contribute to the well-being of people.

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Cautionary Note

The terms “TotalEnergies”, “TotalEnergies company” or “Company” in
this document are used to designate TotalEnergies SE and the consolidated
entities that are directly or indirectly controlled by TotalEnergies SE.
Likewise, the words “we”, “us” and “our” may also be used to refer
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SE directly or indirectly owns a shareholding are separate legal entities.
This document may contain forward-looking information and statements that are
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nor any of its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends contained in
this document whether as a result of new information, future events or
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TotalEnergies’ financial results or activities is provided in the most
recent Universal Registration Document, the French-language version of which
is filed by TotalEnergies SE with the French securities regulator Autorité
des Marchés Financiers (AMF), and in the Form 20-F filed with the United
States Securities and Exchange Commission (SEC).

(1) Gigawatt alternative current (GWac)

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