Total Energy Group has agreed to buy a stake of 20% in India’s Adani Green Energy Limited (AGEL) in an attempt to enhance its presence in the renewable energy, Reuters reported.
Total said that this transaction would give Total a seat on the AGEL’s board of directors. The company is trying to diversify its activities by shifting towards electricity and renewable resources. It aims to have 35 gigawatts (GW) of gross renewable resources generation capacity by 2025 form around 9 GE now.
Total’s CEO and Chairman Patrick Pouyanne commented; “Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties,”
“Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas,” he added.
The two companies, also, added that they had agreed to acquire 50% stake in a 2.35 GW portfolio of operating solar assets owned by AGEL in addition to a stake of 20% in AGEL for global investments estimated at $2.5 billion.