LONDON – French energy giant Total SE said it would pay $ 2.5 billion for a 20% stake in the world’s largest solar developer, the latest move by a major oil company to expand renewable energy.
Total said Monday that the investment in Adani Green Energy Ltd. it would help it achieve its goals of generating more energy from low-carbon sources in the midst of a global transition away from fossil fuels, a shift some analysts say the pandemic is accelerating.
The company, along with other large oil companies such as BP PLC and Royal Dutch Shell PLC, is committed to increasing spending on renewable energy such as wind and solar power in an effort to reduce carbon emissions. The total plans to invest $ 3 billion a year in renewable energy by 2030, about 20% of its annual investment budget and more than $ 2 billion last year.
The Adani deal offers full exposure to a leading renewable energy business in India, one of the fastest growing energy demand markets in the world. Adani has 54 wind and solar projects in operation across the country, including one of the largest solar projects in the world in Kamuthi, southern India. Based on existing generation capacity and ongoing projects, Adani is the world’s leading developer of solar energy, Total said.
As part of the deal, Total also has a 50% stake in Adani’s solar asset portfolio and gets a seat on the company’s board. The measure will help Total achieve its goal of having 35 gigawatts of renewable energy capacity by 2025, up from 7 gigawatts last year.