Adani Enterprises remains committed to advancing its green hydrogen initiative despite uncertainties around its partnership with French company Total Energies. Earlier this year, reports indicated that Total Energies had paused plans to collaborate with Adani in this venture. However, Adani Enterprises’ top executives emphasized during an earnings call on August 11 that green hydrogen remains a crucial aspect of their investment strategy.
The company is on track to commence construction of its electrolyzer manufacturing facility within the current or upcoming quarter. Adani Enterprises had earlier joined hands with Total Energies in June of the previous year to acquire a 25% stake in Adani New Industries Limited (ANIL), a dedicated platform for producing and commercializing green hydrogen in India. Their shared goal is to achieve an annual production target of 1 million tonnes of green hydrogen by 2030.
While Total Energies’ interest encountered setbacks following a Hindenburg Research report on Adani’s conglomerate in January, ANIL continues to operate as a wholly-owned subsidiary of Adani Enterprises. Although the partnership status with Total remains uncertain, Adani Enterprises maintains its commitment to the investment, as confirmed by Robbie Singh, the Chief Financial Officer.
Singh stated that the Memorandum of Understanding (MoU) with Total is still in effect, and the timeline to initiate green hydrogen production, initially set for the end of 2025 or the beginning of 2026, remains unchanged.
The comprehensive green hydrogen ecosystem strategy encompasses manufacturing capabilities for various components including ingots, cells, modules, wind turbines, and electrolysers. Singh announced that the company plans to commence development and construction of its integrated electrolyzer manufacturing facility by the end of the current quarter or early in the following quarter.
As part of its FY24 capital expenditure of $3.7 billion, Adani Enterprises has allocated $300 million for the green hydrogen initiative and less than $200 million for its planned copper smelter project. Both copper production and green hydrogen represent new business segments for Adani Enterprises, with market watchers closely monitoring their timelines. The previously indicated capital expenditure of $50 billion for the green hydrogen ecosystem remains unchanged.
