After TotalEnergies SE postponed plans to collaborate in the endeavor, India’s Gautam Adani is ready to spend billions of dollars on creating green hydrogen in India on his own.
The third-largest polluter in the world, France, has decided to purchase a 25% share in Adani New Industries Ltd. for an unknown sum to support green hydrogen projects there. However, Total halted its investment in February as it looked into allegations of fraud at the Adani Group made by a short seller, which the conglomerate has refuted.
Adani’s first green hydrogen project will cost $5 billion and consist of an integrated complex that will also produce wind turbines, solar panels, and other renewable energy sources. The project serves as a springboard for the organization’s longer-term goal to invest more than $50 billion in the fuel’s development by the end of the decade.
According to a transcript on the company website, Jugeshinder Singh, chief financial officer of the billionaire’s main company, Adani Enterprises Ltd., told investors last week that the facility’s construction is not reliant on Total’s ownership. “We are continuing the project at the same pace as it is right now.”
Singh’s remarks might be interpreted as a sign that the group is regaining the backing of lenders and investors after months of instability as a result of the short seller’s allegations.
As Prime Minister Narendra Modi works to build India’s leadership in the new technology, tycoons like Adani and his adversary Mukesh Ambani are betting on green hydrogen. This new fuel is being considered as a replacement for fossil fuels across a number of industries, from steel to oil refining and fertilizers. By 2030, the country wants to manufacture 5 million tons annually, with an eye on both the export market and rising local consumption.
Total has already invested in four Adani companies, and according to Singh, the agreement on hydrogen is still in effect. We will naturally respond with “sure, no issues” if they indicate an interest in the fifth investment, he said. He said, “But that doesn’t mean it’s a joint investment decision.”
According to Singh, Adani Enterprises will invest roughly $300 million in the hydrogen industry in the year through March, and from the next year, this investment will start to increase quickly. According to him, the company expects to invest $3.7 billion in capital over the year.