Adani Group to raise USD 4 billion for green hydrogen projects

CHENNAI:  Adani Enterprises is looking to raise USD 4 billion from domestic and international banks to fund its green hydrogen plans, according to sources privy to the development. Adani New Industries Limited, a wholly owned subsidiary of company Adani Enterprises, will lead the efforts and is in early-stage talks with several lenders.

The fresh fundraising will be independent of France’s energy major TotalEnergies, which announced a joint venture for green energy projects with Adani Green. According to sources, one of the first projects that the money will be put toward is a 1 million metric tons per annum green hydrogen facility being built in Gujarat which is expected to start production in 2027.

TotalEnergies has announced its decision to invest $300 million to build renewable energy with the capacity to generate 1050 megawatts (MW) of electricity, according to Reuters.

The development comes amid the Adani group, battling allegations of corporate fraud levelled by Hindenburg Research since January. The group denied the allegation, however, its bonds and shares have plunged.

Adani bets on the emergence of renewable power with an estimated 75% of its future capital expenditure marked towards green power infrastructure. The demand for green hydrogen is increasing as countries see it as a critical fuel to switch to greener power.

Funding to be independent of France’s TotalEnergies

The fresh fundraising will be independent of France’s energy major TotalEnergies, which announced a joint venture for green energy projects with Adani Green. According to sources, one of the first projects that the money will be put toward is a 1 million metric tons per annum green hydrogen facility being built in Gujarat which is expected to start production in 2027