India (Commonwealth) _ Billionaire Gautam Adani’s Adani Group is looking to invest up to $4 billion to assist establish manufacturing units that would manufacture low-cost green hydrogen, as per the experts familiar with the business.
Adani New Industries Ltd., a fully owned subsidiary of Adani Enterprises Ltd., would take the lead in raising the funds from local and foreign banks, according to persons who asked not to be identified because the specifics are confidential. Adani representatives did not reply to the comment yet.
TotalEnergies SE of France and Adani stated in June that they want to invest $5 billion in India to manufacture green hydrogen and associated goods as the world’s third-largest polluter strives to decarbonize. Gautam Adani has previously stated that 75% of the group’s expected capital spending will be in green enterprises, and his firms aim to invest $20 billion in renewables, green component manufacturing, and associated infrastructure over the next decade.
As Prime Minister Narendra Modi attempts to establish India’s leadership in the shift to greener technologies, tycoons like Adani and his competitor Mukesh Ambani are banking on green hydrogen.
“Green hydrogen holds a strong promise for India’s future energy self-reliance,” according to Adani’s website. It is not difficult to imagine a scenario in which green hydrogen at less than $1/kg, combined with projected cost reductions in combined cycle hydrogen turbines and fuel cells, will not only allow the country to transition away from fossil fuels, but will also relieve India of the crippling financial burden of energy imports.
According to the sources, Adani New Industries would raise new money independently of Total. According to them, one of the first projects that would receive funding is a 1 million metric tons per year green hydrogen factory being developed in Gujarat. Production at that plant is scheduled to begin in 2027.
A successful project finance closing would signal that the ports-to-power complex is regaining the trust of lenders following Hindenburg Research’s charges of corporate malfeasance in late January. While Adani Group strenuously refuted the allegations, its bonds and shares plummeted, with most still unable to recover their previous highs. A court-ordered investigation by India’s market regulator is ongoing to determine whether the company breached any local securities regulations.
TotalEnergies, a subsidiary of Total, announced in September that it will spend $300 million in a joint venture with Adani Green Energy to construct renewable capacity in India. According to media reports, Adani New Industries would seek new funding independently of Total.
According to the article, a 1 million metric ton per year green hydrogen factory in the western state of Gujarat will be among the first few projects to get funding. According to the article, the plant will begin production in 2027.
The Adani Group is an Indian multinational company based in Ahmedabad. Gautam Adani founded the Group in 1988 as a commodities trading company. Today, the Group’s activities include port management, electric power production and transmission, renewable energy, mining, airport operations, natural gas, food processing, and infrastructure. Coal-related operations account for more than 60% of Adani Group revenue.
Syed Basar Shueb, the CEO of the UAE-based conglomerate International Holding Company (IHC), invested US$2 billion in three Adani Group firms in May 2022: Adani Green Energy, Adani Transmission, and Adani Enterprises. TotalEnergies paid US$12.5 billion for a 25% share in Adani New Industries, Adani Enterprises’ newly established green hydrogen business.
Adani Green Energy Limited (AGEL) is an Adani Group-owned Indian renewable energy firm located in Ahmedabad, India. The firm operates the Kamuthi Solar Power Project, one of the world’s largest solar photovoltaic facilities. India is the world’s third largest power user and third largest renewable energy producer, with 40% of energy capacity added in 2022 (160 GW of 400 GW) coming from renewable sources.
