French oil giant Total puts $50-bn hydrogen project with Adani on hold

New Delhi, February 8

France’s TotalEnergies has put on hold a planned investment in Adani Group’s $50 billion hydrogen project pending results of an audit launched following allegations by a US short-seller, chief executive Patrick Pouyanné said on Wednesday.

While the partnership where the French oil giant was to take a 25% stake in the hydrogen venture of the Adani Group was announced in June last year, TotalEnergies has not yet signed a contract, he said at an earnings call.

“Obviously, the hydrogen project will be put on hold until we have clarity” from Adani Group on the allegation levelled by US short-seller Hindenburg Research, Pouyanne said.

TotalEnergies is one of the biggest foreign investors in billionaire Gautam Adani’s business and had previously taken stakes in the group’s renewable energy venture, Adani Green Energy Ltd and city gas unit, Adani Total Gas Ltd.

As per the June 2022 announcement, TotalEnergies was to take 25% equity in Adani New Industries Ltd (ANIL) — the Adani Group firm that is investing $50 billion over 10 years in a green hydrogen ecosystem that includes an initial production capacity of 1 million tonnes before 2030.

The announcement by Total adds to the woes of Adani. The crisis around the group following the Hindenburg report has also been used by the opposition parties to attack the government, alleging that the tycoon’s rise was primarily because of his association with Prime Minister Narendra Modi. The government has rejected the allegation.

“This project was announced but nothing has been signed... and for now it won’t be signed,” Pouyanne said. “It makes no sense to add more (projects) until there is clarity.” Adani has to explain the allegations, he said. — PTI

Contract yet to be signed

• While the partnership where the French oil giant was to take a 25% stake in the hydrogen venture of the Adani Group was announced in June last year, TotalEnergies has not yet signed a contract
• TotalEnergies is one of the biggest foreign investors in Adani’s business empire and had previously taken stakes in the group’s renewable energy venture, Adani Green Energy Ltd and city gas unit, Adani Total Gas Ltd