French oil company Total has purchased a 20% minority stake in Indian renewables producer Adani Green Energy Ltd (AGEL). The company will also take a 50% interest in the company’s solar assets and occupy a seat on Adani’s board.

Adani Group, owner of AGEL, also has an ongoing natural gas joint venture with Total. Established in October 2019, this 50/50 joint venture includes ownership of two LNG terminals and an equal stake in Adani Gas Ltd, alongside a public stake.

A statement by Total explains that today’s stake purchase was agreed during the formation of this partnership.

In February 2020, the companies set up a solar development joint venture with an enterprise value of $22.2m (INR1.63bn). Last week, Adani Green Energy sold 205MW of solar assets into its joint venture with Total. For this, Adani received $222m (INR1.6bn). This brought the total solar assets managed by the company to 2.4GW.

Total chairman and CEO Patrick Pouyanné said: “Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties. Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas.”

Total’s statement explained that the deal will help it build toward its target of having 25GW of renewable generation by 2025, adding 10GW annually thereafter.

Total has moved to diversify its business via purchase of shares in utilities, energy storage providers and renewable generation companies. At a recent investor day, a company statement asserted: “In the next decade, oil products sales from Total will diminish by almost 30% and Total’s sales mix will become 30% oil products, 5% biofuels, 50% gases, and 15% electrons.”

The company also owns solar developer Sunpower, which has found mixed success. Based on lessons learned from the company, Total has started developing its own solar farms. It also said it aims to ramp up solar development with AGEL before 2022.

Adani formed AGEL in 2015. The company operates 3GW of solar generation, with another 3GW under construction and 8.6GW in development. By 2025, the company hopes to have 25GW of renewable generation. Currently, the company’s market value stands at $20.25bn.

Adani Group chairman Gautam Adani said: “We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India. We look forward to working together towards delivering India’s vision for 450GW renewable energy by 2030.”

Following the deal, AGEL stocks fell by approximately 2%, before returning to their previous levels later in the day.