TotalEnergies is set to acquire a 25% minority stake in Adani New Industries Ltd (ANIL) from Adani Enterprises Ltd (AEL) for a joint venture to produce ‘green hydrogen’.

Adani New Industries Ltd and France’s TotalEnergies have agreed to work on jointly creating the world’s largest green hydrogen ecosystem. Adani New Industries Ltd will invest $50 billion in green hydrogen over the next 10 years. The joint venture has set a target to develop a green hydrogen production capacity of 1 million tonnes per annum before 2030 in the initial phase.

Gautam Adani, chairman of Adani Group, 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 research and development, market reach, and an understanding of the end consumer. This fundamentally allows us to shape market demand,” Adani said in a statement.

Patrick Pouyanné, chairman and CEO of TotalEnergies, said: “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.”

“This future production capacity of 1 million ton per annum 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,” he said.

The complementary strengths of the partners will help ANIL deliver the largest green hydrogen ecosystem in the world, which, in turn, will deliver the lowest cost of green hydrogen to the consumer and help accelerate the global energy transition, the company stated.