France’s Total puts hydrogen partnership with Adani on hold

NEW DELHI: 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 per cent 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 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.

As per the June 2022 announcement, TotalEnergies was to take 25 per cent equity in Adani New Industries Ltd - 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.

“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, adding “Adani has other things to deal with now, it’s just good sense to pause things while the audit goes forward.”