- €200M will be invested to transform La Mède into a biorefinery by end-2016.
- €400M will be invested to upgrade Donges to produce low-sulfur fuels.
- La Mède will produce 500,000 tons of biodiesel annually using HVO technology.
- Donges will add a desulfurization unit and a steam methane reformer by 2019.
Investment in La Mède
Total will invest €200 million to transform the La Mède refinery into France’s first biorefinery, one of the largest in Europe, to meet the growing demand for biofuels. Crude oil processing will cease by the end of 2016. The biorefinery will produce 500,000 tons of biodiesel annually, primarily from used oils and renewable feedstock, using the hydrotreated vegetable oil (HVO) process developed by Axens.
Investment in Donges
€400 million will be invested to upgrade the Donges refinery to produce low-sulfur fuels that meet evolving EU specifications. This includes building a new desulfurization unit and a steam methane reformer (SMR) to produce hydrogen for the desulfurization process. The project also involves rerouting an existing rail line that currently cuts through the refinery site.
Market Adaptation
European demand for petroleum products has declined by 15% since 2008, driven by energy efficiency and improved vehicle fuel economy. The European refining industry faces additional challenges from the U.S. shale oil and gas revolution and competition from refineries in Asia and the Middle East. Total aims to adapt its production base in France to these market conditions, following previous adjustments such as the shutdown of the Flandres refinery in 2010 and the upgrade of the Normandy refining and petrochemicals platform in 2012.
Employee Impact
Total will implement these changes without layoffs or imposed geographical transfers for non-exempt employees. At La Mède, 250 of the current 430 jobs will be maintained, with workforce reductions managed through early retirements and job offers within Total and its affiliates.
