Green hydrogen is integral to Adani Enterprises’ investment decision, and it is firmly on track, top executives of the company said in a post results earning call on August 3.
Earlier this year, French company Total Energies was reported to put plans to partner with the company in the venture on hold.
Adani Enterprises expects to start construction of its electrolyzer manufacturing facility in the current or next quarter.
In June last year, TotalEnergies and Adani Enterprises Limited agreed to acquire 25 per cent interest in Adani New Industries Limited (ANIL), as an exclusive platform of the two companies to produce and commercialise green hydrogen in India, with a target of 1 million tonnes per year by 2030.
In the announcement, the two companies said: “Total Energies’s expertise, global understanding of markets and financial strength, will enable ANIL to lower its financing cost.”
Total Energies’ plans to pick an interest ran into trouble post the Hindenburg Research report on the Adani conglomerate in January this year. ANIL, so far remains a 100 per cent subsidiary of Adani Enterprises.
Top executives at Adani Enterprises did not confirm an end of partnership for green hydrogen with Total, however, they indicated, “Investment decision is still Adani Enterprises’ and Adani Enterprise is continuing with that investment and we do not anticipate, or we do not think anything that we report in relation to the change of schedule on that,” said Robbie Singh, chief financial officer on a June 2023 ended quarter earnings call with analysts.
Singh added that the MoU with Total continues to exist.
The earlier stated timeline to start green hydrogen generation was the end of calendar year 2025 or start of 2026.
The planned green hydrogen eco-system consists of manufacturing capacities for Ingots, cells, modules, wind turbines and electrolysers to form the entire value-chain of green hydrogen generation.
On the latest call with analysts, Singh said, the company expects to start development and construction of its own integrated facility for electrolyzer manufacturing by “the end of this quarter or early in the third quarter.”
He added, the $3.7 billion the company plans to spend as capital expenditure in FY24, will include $300 million for green hydrogen and under $ 200 million towards the planned copper smelter project.
For Adani Enterprises, both copper and green hydrogen are new business segments, and timelines for the same are keenly watched by the street. Singh added the earlier indicated $50 billion capital expenditure over the years for the green hydrogen eco-system stands unaltered.