Table of Contents
Introduction:
Adani, India’s fastest growing diversified business portfolio, and energy super major Total Energies of France, have entered into a new partnership with Adani and TotalEnergies to create World’s Largest Green Hydrogen Ecosystem jointly create the green hydrogen ecosystem.
In this strategic alliance, Total Energies will acquire a 25 percent minority interest in Adani New Industries Ltd (ANIL) from Adani Enterprises Ltd (AEL). The new partnership, centered on green hydrogen, is expected to transform the energy landscape both in India and globally.
Pioneers in Energy Transition:
Both Adani and Total Energies are pioneers in energy transition and clean energy adoption, and this joint energy platform further strengthens the public ESG commitments made by both companies. ANIL’s ambition is to invest over USD 50 billion over the next 10 years in green hydrogen and associated ecosystems. In the initial phase, ANIL will develop a green hydrogen production capacity of 1 million tons per annum before 2030.
Speech by Gautam Adani, Chairman of Adani Group:
“The strategic value of the Adani-Total Energies relationship is immense at both the business level and the ambition level,” said Gautam Adani, Chairman, of Adani Group. “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 the 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.”
Speech by Patrick Pouyanne, Chairman and CEO of TotalEnergies:
“TotalEnergies’ entry into ANIL is a major milestone in implementing our renewable and low carbon hydrogen strategy, where we want to not only decarbonize the hydrogen used in our European refineries by 2030 but also pioneer the mass production of green hydrogen to meet demand, as the market will take off by the end of this decade,” said Patrick Pouyanne, Chairman and CEO of Total Energies.
“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. green hydrogen companies stock in India this future production capacity of 1 million tons per annum of green hydrogen will be a major step in increasing Total Energies’ share of new decarbonized molecules including biofuels, biogas, hydrogen, and e-fuels to 25 percent of its energy production and sales by 2050.”
Partnership & Collaboration:
This partnership builds on the exceptional synergies between the two platforms. While Adani will bring its deep knowledge of the Indian market, rapid execution capabilities, operations excellence and capital management philosophy to the partnership, TotalEnergies will bring its deep understanding of the global and European market, credit enhancement and financial strength to lower the financing costs and expertise in underlying technologies.
ANIL aims to be the largest fully integrated green hydrogen player in the world, with a presence across the entire value chain, from the manufacturing of renewables and green hydrogen equipment (solar panels, wind turbines, electrolyzers, etc.), to the large-scale generation of green hydrogen, to downstream facilities producing green hydrogen derivatives.
The Bottom Line:
With this investment in ANIL, the strategic alliance between the Adani Portfolio and Total Energies now covers LNG terminals, the gas utility business, renewables business, and green hydrogen production.
The partnership helps India in its quest to build the fundamental pillars of economic sustainability by driving the decarbonization of industry, power generation, mobility, and agriculture thereby mitigating climate change, and ensuring energy independence.
FAQs about Adani and TotalEnergies to create World’s Largest Green Hydrogen Ecosystem:
Is green hydrogen good for the environment?
Green hydrogen could be a critical enabler of the global transition to sustainable energy and net-zero emissions economies. There is unprecedented momentum around the world to fulfill hydrogen’s longstanding potential as a clean energy solution.
Why is green hydrogen more expensive?
High cost: energy from renewable sources, which are key to generating green hydrogen through electrolysis, is more expensive to generate, which in turn makes hydrogen more expensive to obtain.
What are some challenges associated with green hydrogen?
However, there are some challenges with the storage of hydrogen as discussed below. High energy requirement in compressed hydrogen storage, due to low specific gravity. Temperature and pressure requirements while storing hydrogen in solid form. Design aspects, legal issues, social concerns, and high cost.
In what areas can green hydrogen be used?
In addition to the above-mentioned use as an energy store, hydrogen is currently mainly used in two sectors. One use is in the chemical industry for manufacturing ammonia and fertilizers. While its second main use is in the petrochemical industry to produce petroleum products.
Is green hydrogen flammable?
Many fuels are flammable. Compared to gasoline, natural gas, and propane, hydrogen is more flammable in the air. However, low concentrations of hydrogen have similar flammability potential as other fuels.
What are the barriers to the hydrogen economy?
However, there are still some barriers to the realization of a hydrogen-based economy, which includes large-scale hydrogen production cost, infrastructure investments, bulk storage, transport & distribution, safety consideration, and matching supply-demand uncertainties.
What are the key challenges facing a change to the hydrogen economy?
These include, but are not limited to, hydrogen storage issues, the purity requirement for hydrogen (when used in fuel cells), the infrastructure required, and safety and environmental concerns.
Does the green hydrogen economy have a water problem?
Green hydrogen production will consume 1.5 ppm of Earth’s freshwater or 30 ppb of saltwater each year, an amount smaller than what is currently consumed by fossil fuel-based energy production and power generation.
Conclusion:
The new partnership, centered on green hydrogen, is expected to transform the energy landscape both in India and globally. Both Adani and TotalEnergies are pioneers in energy transition and clean energy adoption, and this joint energy platform further strengthens the public ESG commitments made by both companies.
