In what could be contemplated as a breakthrough move to reduce Total’s reliance on fossil-fuel, the Paris-based French multinational oil “Supermajor” agreed to lay off a stark upsum of a whopping $2.5 billion for a 20 per cent stake in an Indian renewable energy firm Adani Green Energy Limited alongside a handful of solar power assets owned by the Ahmedabad, Gujrat-headquartered company, a subsidiary of Adani Group.
On top of that, according to financial terms of the deal, the 97-year-old French fossil-fuel behemoth, would receive a 20 per cent stake in AGEL (Adani Green Energy Limited) alongside a 50 per cent stake in the Indian renewable energy firm’s solar power assets, the French oil mogul often dubbed as one of the seven oil "Supermajors" across the globe had said in a statement late on Monday.
Notably, AGEL, one of the largest renewable companies in the world’s fifth-largest economy by nominal GDP and the third-largest by PPP (Purchasing Power Parity), harnessing a portfolio of solar power assets with a production capacity of up to 13,990 Mega Watts of renewable energy, is a subsidiary of Indian energy industry conglomerate Adani Group which was established as a mediocre commodity trading firm back in the 1988s, while as of end-2020, AGEL has a $20.25 billion or 1.48 trillion Indian rupees in market capitalization.
Total ramps up renewable energy venture with $2.5bn in fresh investment
Aside from that, as a number of leading European economies likes of Germany and France, the first- and second-largest economies in the 26-member bloc respectively, sped up their push towards an emission free and carbon-neutral world, the French oil Supermajor's latest move heralds a rapid transmutation towards electricity and renewable energy, while the Paris-based oil giant was reportedly looking to expand its production capacity up to 35 GWs of gross renewable energy by 2025 from a latest reading of 9 GWs.
More importantly, latest Total SE move to take stakes in AGEL came forth less than a week after the French oil giant had quitted the main oil and natgas lobby in the US, American Petroleum Institute, citing potential conflict of interests over the lobby’s constant support to ease drilling regulations alongside other climate policies, becoming the first oil major ever to exit the United States’ main oil and gas lobby.