The Ad Group said on Monday that France-based Total will acquire 20 per cent minority interest in Ad Green Energy Ltd (AGEL).
The investment in AGEL is another step in the strategic alliance between Ad Group and Total across various businesses and compes of the Ad Group, covering investments in LNG terminals, gas utility business and renewable assets across India.
"This is in-line with the commitment of both Ad and Total to be leading participants in the sustainable economy of future and help India in its quest for development of renewable energy," said an official statement issued by the Ad Group.
In 2018, Total and Ad embarked on the energy partnership with investment by Total in Ad Gas Ltd's city gas distribution business, associated LNG terminal business and gas marketing business.
Total acquired 37.4 per cent stake in Ad Gas Ltd and 50 per cent stake in Dhamra LNG project. During the development of this partnership, it was further agreed that Total and Ad will continue this alliance into the wider sustainable energy space.
Total and Ad agreed the acquisition of a 50 per cent stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL and 20 per cent stake in AGEL for a global investment of 2.5 billion dollars.
"We are delighted to deepen our strategic alliance with Total, a global energy major, and welcome them as a significant shareholder in Ad Green Energy Ltd," said Ad Group Chairman Gautam Ad.
"We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India. We look forward to working together towards delivering India's vision for 450 GW renewable energy by 2030."
Total SE's CEO Patrick Pouyanne said the agreement is an important step in alliance with the Ad Group in India and the common vision and goals with respect to the importance of access to low carbon energy in India.
He said Total's entry into AGEL is a major milestone in its strategy on the renewable energy business in India put in place by both compes which began with the first joint venture 2.3 GW of renewable capacity.
"Given the size of the market, India is the right place to put into action and to deploy our energy transition strategy based on two pillars: renewables and natural gas," he said.
India has set a policy target of setting up 450 GW of renewable power capacity by 2030, driven by the vision of Prime Minister Narendra Modi. Starting with his commitment to the Paris Agreement in 2015 and further reinforcement in 2019 United Nation Climate Action Summit, India has been at the forefront of the global agenda of fight against climate change.
In this context, Ad Group and Total have joined hands to develop green power sources at affordable prices and to deliver this transformational energy solution.
As on date, AGEL has over 14.6 GW of contracted renewable capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development.
The company aims to achieve 25 GW of renewable power generation by 2025 and is committed to contribute mengfully to India's COP21 goals and to the wider UNFCC goals of sustainability.
( With inputs from ANI )
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