Adani Group on Monday said it has sold a 20 per cent equity stake in Adani Green Energy to global energy major Total of France for $2.5 billion.

The purchase of 20 per cent minority interest by Total was done “via the acquisition of shares held by the Adani Promoter Group in Adani Green Energy Limited (AGEL)”, a statement by Adani said.

Global energy majors such as Total and BP have increased their focus on green energy and lowered their stakes in fossil fuel with growing consciousness about climate change and the adverse impact of greenhouse gas.

International Energy Agency in its report said “the oil and gas industry is facing increasing demands to clarify the implications of energy transitions for their operations and business models, and to explain the contributions that they can make to reduce greenhouse gas emissions and to achieve the goals of the Paris Agreement”.

“The increasing social and environmental pressures on many oil and gas companies raise complex questions about the role of these fuels in a changing energy economy, and the position of these companies in the societies in which they operate,” it said.

Patrick Pouyanne File picture

Total CEO Patrick Pouyanne said “our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties, which began with our first joint venture 2.3GW of renewable capacity.

He said “given the size of the market, India is the right place to put into action/to deploy our energy transition strategy based on two pillars: renewables and natural gas”.

The investment in Adani Green is another step in the strategic alliance between Adani Group and Total across various businesses and companies of the group covering investments in LNG terminals, gas utility business and renewable assets across India.

In 2018, Total and Adani embarked on the energy partnership with investment by Total in Adani Gas Ltd which has a presence in the city gas distribution business, associated LNG terminal business and gas marketing business. The French giant had acquired a 37.4 per cent stake in Adani Gas Limited and a 50 per cent stake in Dhamra LNG project.

“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 450GW renewable energy by 2030,” Adani Group chairman Gautam Adani said.

Adani Green started in 2015 with the world's largest single location solar power project at Kamuthi, Tamil Nadu with 648MW capacity. It has over 14.6GW of contracted renewable capacity, with an operating capacity of 3GW and another 3GW under construction and 8.6GW under development.

The company aims to achieve 25GW of renewable power generation by 2025, and is committed to contribute meaningfully to India's COP21 goals and to the wider UNFCC (UN Framework Convention on Climate Change) goals of sustainability. India has set a policy target of setting up 450GW of renewable power capacity by 2030.