TotalEnergies has recently announced an agreement with Adani Enterprises Limited (AEL) to acquire a 25% interest in Adani New Industries Limited (ANIL). ANIL will be the platform used by TotalEnergies and AEL for the production and commercialisation of green hydrogen in India.

ANIL has set an ambitious yet achievable target of producing 1Mtpy of green hydrogen by 2030 which will be underpinned by approximately 30GW of new renewable power generation capacity. ANIL intends to be integrated along its value chain in a bid to reduce green hydrogen production costs. This integration includes the manufacturing of equipment used to generate renewable power, the production of green hydrogen itself, and its subsequent transformation into derivatives such as methanol and nitrogenous fertilisers for local use and export.

ANIL’s first planned project involves producing 1.3Mtpy of urea derived from green hydrogen for the local Indian market to substitute for current urea imports. ANIL will invest approximately US$5Bn in a 2GW electrolyser fed by renewable power from a 4GW solar and wind farm. The partnership between TotalEnergies and Adani leverages the former’s expertise of global markets, renewable technologies and financial strength with the latter’s expertise of the Indian market and operational management. This will ultimately allow for ANIL to lower its financial costs, with an ambition to deliver the largest green hydrogen ecosystem in the world and in turn enable the lowest green hydrogen cost to the consumer.

India’s power ministry recently set a target of manufacturing 5Mtpy of green hydrogen by 2030. In this context, ANIL’s plans will provide a sizable contribution to India’s zero-carbon goals. Most importantly, the integration of production through to derivative methanol and nitrogenous fertilisers will allow for ease of transportation and provide potential export opportunities.