What Jobs in a low carbon economy ? 20-21 February 2007

Transition to Low Carbon: impact on Competitiveness and Jobs

The point of view of an European Oil and Gas company

Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007

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Transition to a ” low carbon economy”: a major challenge for oil Industry

• The facts :

• In order to limit the consequences of climate change, many recommendations (IPCC, Stern report…) to move urgently to a ” low carbon economy ”

• The EU’s Energy Strategy Review key targets concerns reduction of GHG emission and related policies

• TOTAL

- supports the EU target of 20% GHG reduction in 2020

- welcomes the EU 20% target on energy efficiency and the EU ambitious targets on Carbon Capture and Storage

Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007

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But, the EU ”low carbon policy” has to be implemented within realities of the Energy Market

• Fossil fuels expected to remain the main source of energy supply by 2030

• The GHG reduction from fossil fuels well to tank process is limited (such process represents only 15% of emissions)

• Expected increase of demand and more stringent fuels specifications could contribute to increased CO2 emissions from refineries

• Refineries activity in EU will be sustainable as long as competitiveness shall be maintained

Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007

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TOTAL recommendations

• To dedicate oil in EU and OECD mainly for transportation and petrochemical uses and to rely more on Biomass and Gas for power generation peak oil to be delayed

• To promote the emergence of a global framework for carbon after 2012 including all major emitters role of EU’s external relations

• To promote in EU a friendly and predictable regulatory and market framework (ETS, NAPS and CO2 price )

• To establish a fair burden sharing of the “low carbon economy” between industry, consumer, and transportation networks necessity of EU/Members States coherence

• To support low carbon technologies ( in particular Carbon Capture and Storage, Renewables and Energy efficiency related technologies)

Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007

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Conclusions

• Expanding the technology driven non CO2 energy sector should be a powerful engine for new and economical activities and jobs within the EU

• Strong cooperation/disseminations between Oil industry and other industrial sectors (ex : Total/Alstom – Total/Véolia)

• Some leading actions from TOTAL:- CCS : the Lacq project - Biomass and Biofuels: the Second Generation biofuels and bio- refineries…- original support to SME’s through its « regional development » programs

(agreement to be executed soon between FECER, FECCIA, EMCEF and TOTAL )

Low carbon economy is possible – sound science and cost efficiency are the drivers for the future

Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007

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The Lacq CCS pilot project (France)

Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007

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• • •

•

• Oxygène• • Combustible• • Fumées d’oxy•-•combustion• • Eau d’alimentation• • Vapeur produite •

• • •

•Ventilateur booster vers •traitement de fumées•

•Traitement• •des fumées•

•Registre•

•Ventilateur de •recycle des• fumées• •Cheminée•

•

Exemple of R&D and technology improvement to be issued from CCS Conversion of a Lacq’s steam boiler to oxy-combustion

Conversion of a

classical steam boiler

using air to an steam boiler

using oxygen (Oxy-

combustion)

40 t/h steam 60b/450°C

(30MWth) to deliver Lacq

steam network

Original boiler commissioned in 1957

Modifications studied by Alstom to convert this boiler to

oxy-combustion

Prestataire chaudière

Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007

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Evolution of the Biofuels activity of TOTAL* ( * present European leader on biofuels)

Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007

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Examples of different types of technologies so called

“ 2nd Generation Biofuels “

(Notice that bio wastes and other bio feedstocks not in competition with food can be used for those pathways)

Conference « What Jobs in a low carbon economy ? » DSER/DAE 20-21 February 2007

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TOTAL’s support to SMEs

• Type of support:

Start Ups R&D and technology International development Financial Revitalization of industrial

areas African SME’s

• From more than 10 years, support to 3500 SMEs, corresponding to 44 000 jobs

CREATI

Cap Export 2006 Award