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 an oil major to expand into renewable energy.
Kool said the investment in Adani Green Energy Ltd. on Monday will help it meet its goals to generate more electricity from low-carbon sources, amid a global transition away from fossil fuels – a change some analysts say That is being accelerated by the epidemic.
The company has pledged to increase spending on renewable energy such as wind and solar power in an effort to reduce carbon emissions, along with other oil majors including BP PLC and Royal Dutch Shell PLC. Altogether there are plans to spend $ 3 billion a year on renewable goods by 2030, about 20% of its annual investment budget, and from $ 2 billion last year.
The Adani deal gives total exposure to a major renewable business in India, one of the world’s fastest growing markets for energy demand. Adani has 54 wind and solar projects across the country, including one of the world’s largest solar projects in Kamuthi, southern India. Total said that based on the current production capacity and the projects in its pipeline, Adani is the world’s largest developer of solar power.
As part of the deal, Total is also taking a 50% stake in a portfolio of Adani’s solar assets and getting a seat on the company’s board. This move will help towards the total target of 35 GW of renewable energy capacity by 2025, up from about 7 GW last year.