Adani Enterprises’ shares surged 3.73% to Rs 2,159.05 after the Adani Group announced a collaboration with TotalEnergies of France to establish the world’s largest green hydrogen ecosystem.

According to the regulatory filing, TotalEnergies will purchase a 25% minority stake in Adani New Industries (ANIL) from Adani Enterprises (AEL). 

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ANIL intends to invest more than $50 billion in green hydrogen and its accompanying ecosystem during the next ten years. ANIL will create a green hydrogen production capacity of 1 million tonnes per year before 2030 in the first phase.

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Gautam Adani, the chairman of Adani Group said, “The strategic value of the Adani-TotalEnergies relationship is immense at both the business level and the ambition level. In our journey to become the largest green hydrogen player in the world, the partnership with TotalEnergies adds several dimensions that include R&D, market reach and an understanding of the end consumer. This fundamentally allows us to shape the market demand. This is why I find the continued extension of our partnership to hold such great value. Our confidence in our ability to produce the world’s least expensive electron is what will drive our ability to produce the world’s least expensive green hydrogen. This partnership will open up a number of exciting downstream pathways.” 

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Patrick Pouyanné, the chairman and CEO of TotalEnergies said, “TotalEnergies’ entry into ANIL is a major milestone in implementing our renewable and low carbon hydrogen strategy, where we want to not only decarbonize the hydrogen used in our European refineries by 2030 but also pioneer the mass production of green hydrogen to meet demand, as the market will take off by the end of this decade. We are also very pleased with this agreement, which further strengthens our alliance with the Adani Group in India and contributes to the valorization of India’s abundant low-cost renewable power potential. This future production capacity of 1 million tons per annum of green hydrogen will be a major step in increasing TotalEnergies’ share of new decarbonized molecules including biofuels, biogas, hydrogen, and e-fuels to 25% of its energy production and sales by 2050.”

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AEL’s consolidated net profit fell 15.7% to Rs 304.32 crore in Q4 FY22, from Rs 360.93 crore in Q4 FY21. Net sales in the fourth quarter were Rs 24,865.52 crore, an increase of 83.8% from Rs 13,525.07 crore at the same time last year.

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Adani Enterprises was trading at Rs 2156.85 on the BSE at 11:20 a.m., up Rs 75.40, or 3.62%. On 27 April 2022 and 14 June 2021, the stock reached a 52-week high of Rs 2,420 and a 52-week low of Rs 1,201.10.