Strategy 2016 Total Energy and Climate Outcome from COP21 Mitigation Financing Transparency Adaptation Capacity building Ambitious 2C 15C temperature rise limit Measurement and reporting ID: 911926
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Slide1
Integrating ClimateInto Our Strategy
2016
Slide2Total Energy and ClimateOutcome from COP21
Mitigation
Financing
Transparency
Adaptation
Capacity building
Ambitious
2°C - 1.5°C temperature
rise
limit
Measurement and reporting
o
f GHG
Commitment to respond to existing impacts of climate change
$100B financing per year from 2020 onward
Global cooperation and technology transfer
Slide3The Challenges of the 2°C Target
Source: IEA, CO2 Emissions from Fuel Combustion, 2014 Edition
Total Energy and Climate
GLOBAL GHG EMISSIONS IN 2010
OIL AND GAS
37
%
GHG emissions
r
elated to human activityOIL AND GAS EMISSIONS~85% associated with product end-use~
15% during production and refining
Slide4Total Energy and ClimateThree Areas of Focus to Meet the 2°C Target
More renewable energies
More energy efficiency
Optimized energy mix
Approx. 1/3
Approx. 1/3
Approx. 1/3
2°C scenario
Business as usual
(CCS 13%, Nuclear 8%, Coal to Gas in power generation 1%)
Slide5SECTION 1
Shaping Tomorrow’s Energy
Slide6Coal down 29% in 2015
18%
in 2035
Total Energy and Climate
Creating an Energy Mix
that
Meets
the
2°C Challenge: 2015 – 2035
Source: IEA – World Energy Outlook 2015Gas to make up 22% overtaking coalRenewables to soar over the same periodfrom 8%
to 22%
Slide7Total Energy and ClimateEach Form of Energy has a Unique Carbon Footprint
WORLD PRIMARY ENERGY SUPPLY AND CO
2 EMISSIONS: SHARE BY FUEL IN 2010
Source: CO
2
emissions from fuel combustion,
IEA
1
TPES: total primary energy supply
2Energy equivalentRenewablesand NuclearGAS emits <50% CO2
emissions as coal in power generation2
Slide8Investment requiredto satisfy demand overthe next 20 yearsGAS$7.5
trillionOIL
$11 trillion
Total Energy and Climate
Continuing to Develop Oil and Gas Production Capacity
GROWTH IN GAS PRODUCTION
BASED ON THE 2°C SCENARIO
billion cubic feet per day
330
Natural
decline
Newprojects4102010
2035(IEA, 2°C)
Slide9Total Energy and ClimateTaking Position in Competitive Resources
BREAKDOWN OF GLOBAL OIL PRODUCTION UNDER THE 2°C SCENARIO
In the next 20 years
,
1/3 of demand will
be met by
yet
-to-be developed
or yet-to-be discovered fields
Taking the 2°C into account, not all hydrocarbons, specifically oil, can be developedThe selectivity of our investments becomes a key factor in remaining competitive to ensure sustainable performance
Other unconventional oilLight tight oilFields yet-to-be foundFields yet-to-be developed
Source: IEA – World Energy Investment Outlook 2014Enhanced oil recoveryNGLsCurrently producingCrude oil:
Slide10Total Energy and ClimateTotal’s Ambition: to be Consistent with the IEA’s 2°C Scenario
Working with governments and industry
Advocating for a price on carbon
Focusing on oil projects with low breakevens
Prioritizing gas projects
Exiting coal business
Growing
low carbon businesses
Slide11SECTION 2
Taking
Action Today
Slide12Improving the Carbon Intensity of Our Production MixTotal Energy and Climate
Integrating Climate into Our Strategy
Developing
Renewable Energies
Improving
Energy Efficiency
Become the
r
esponsible
energy major
>60%gas in our hydrocarbon production mix in 20 years’ time
20% low-carbon businesses in 20 years' timePromote responsible energy use in our operations and by
our customers
Slide13Total Energy and ClimateImproving the Carbon Intensity of Our Production Mix
A target consistent with the 2°C
scenario
CARBON INTENSITY OF TOTAL’S PRIMARY ENERGY MIX VERSUS THE ENERGY MIX OUTLINED IN THE 2°C SCENARIO
Intensity of Total’s production mix
Intensity
of the 2°C
scenario
Slide14Total Energy and ClimateImproving the Carbon Intensity of Our Production Mix
Greenhouse gas emissions
down 19%
since 2010
CHANGE IN
GHG EMISSIONS
per segment within
the
operated scope
CHANGE IN FLARINGNEW TARGETS OVER THE 2010 – 2020 PERIOD
Improve the energy efficiency of our facilities by an average 1% per yearReduce routine flaringby 80%
operated scope, excluding start-up flaring
Exploration & ProductionRefining & ChemicalsMtCO2 - eq
Volume of gas flatered (Mcu.m/d)Limiting GHG emissions in our operated scope
Slide15Total Energy and Climate
More than 60% gas in our
hydrocarbon production m
ix in 20 years’ time
Deploying an assertive strategy in gas, while limiting methane emissions
Exiting the coal business
Selecting
and
developing safe
, environmentally responsible, competitive oil and gas projectsEncouraging sector initiatives and collectively engaging to address climate issuesPublicly supporting the implementation of carbon pricing mechanismsExpanding carbon capture, use and storage technologies
CO2Improving the Carbon Intensity of Our Production Mix
Slide16Total Energy and ClimateAdvantages of Gas over Coal
COMPARISON OF COAL AND GAS FOR POWER GENERATION
Shale gas
Coal
Conventional
natural gas
Liquefied
natural gas
GAS IS A KEY COMPONENT OF OUR STRATEGY
The ideal solution to partner renewables to offset their variability:Gas emits around
<50% fewer GHGs as European domestic coal1Gas fired plants build up to full capacity 2 times faster than coal-fired plants1Over full life cycle, even in the case of coal-fired plans equipped with steam generators
Source: 2015 CIRAIG STUDY
Slide17Total Energy and ClimateLimiting Methane Emissions
GHG EMISSIONS
operated scope:
42 Mt CO
2-eq in 2015
DIRECT EMISSIONS OF METHANE (CH
4
)
ASSOCIATED WITH TOTAL’S PROD. OF GAS
operated scope: 1.1 Mt CO2-eq in 2015Methane emissions account for <0.5%
of Total’s marketed operated productionSource: IEA – CO2 Emissions from Fuel Combustion 2014
Slide18Total Energy and ClimateA Resilient Portfolio
PRIORITIZING SAFETY, ENVIRONMENT AND
PROJECT RESILIENCE
In
2015, we reduced our exposure in Canada’s oil
sands
We do not conduct oil exploration or
production
operations in the Arctic ice
packApply an internal CO2 price of $30 to $40 to all projectsOur portfolio can be considered as resilient under this scenarioLong-term, worldwide
CO2 price of $40 per ton ~5% impact on Total’s discounted present value
Slide19Total Energy and ClimateEncouraging Sector Initiatives and Engaging to Address Climate Change
Committed to working with OGCI member companies
to
deliver practical solutions to climate risks
An
active member of the Climate and Clean Air Coalition
Working to effectively measure, manage and mitigate methane
emissions
Pursuing a viable solution to eliminate
routine flaring by 2030Working with Global CompactTotal supports the call for companies to factor an internal carbon price into their investment decisions
Slide20Total Energy and ClimateCarbon Capture Usage and Storage (CCUS): Significant Potential to Mitigate Climate Change
A
tool to help
combat climate change
A
real
business opportunity
Critical
to
invest and develop an industry around CCUS to make an impact on climate change mitigation€100M in CCUS R&D > €60M invested in Lacq
TOTAL’S LACQ PROJECT1st European onshore capture-transport-storage chain3-year
pilotOver 51,000 metric tons of CO2 successfully injected into the Rousse reservoir (France)
Slide21Total Energy and ClimateDeveloping Low-Carbon Businesses
Growing as a top three solar player
Adding energy storage to our businesses
Promoting access to energy
Developing bioenergies
20% low-carbon b
usinesses
in 20 years’
time
Slide22Total Energy and ClimateTotal: a Leader
in Solar Energy
A
Top
SOLAR PLAYER
1
st
IN CLASS
SunPower
produces the world’s most efficient photovoltaic solar cell technology in its class~50%MORE POWERSunPower’s
MaxeonTM cells deliver 25% efficiency compared to conventional cells
Slide23Total Energy and ClimateTotal: Preparing the Solar
of the Future
SOLAR
Competitive
in
20
countries
With market growth
expected to increase to
>10% per yearSunPower will triple manufacturing capacity to meet demand
Slide24Total Energy and ClimateA Global Leader in Solar
Electricity
storage
SAFT, FRANCE
Developing electricity storage
7 GW
DEPLOYED
WORLDWIDE
1.8 GW
PRODUCTION
CAPACITY
Slide25Total Energy and ClimateSolar Solutions for Access to Clean EnergySince
2011Awango by Total
An innovative, economical, social business that promotes
access to clean energy for
low-income populations through the sale of solar lamps in Total host countries
6
M
people
Already 1.3 million solar lamps sold in 30 countriesAmbition is to reach25M peoplein Africa by 2020
Slide26Total Energy and ClimateBiofuels: New Production Capacity
BIOREFINING AT LA MÈDE
Manufacturing
500,000
tons
of biofuels per year
starting
in 2017
5 YEARS OF R&D5 EUROPEAN PARTNERSBiomass production starting in 20171Jet fuel with 10% blend of biocomponents
used by Air France for weekly flights in 2016 1Taking into account sustainable criteria
Slide27Total Energy and ClimateImproving Energy Efficiency
Promote responsible energy use
in our operations and by our
customers
Continuing our efforts to reduce
greenhouse
gas emissions at our facilities
Providing solutions (products and services)
to
encourage responsible energy use by our customers
Slide28Total Energy and ClimateReducing Emissions at Our Facilities
New objective to
reduce
routine flaring by 80
% between 2010-2020
and
eliminate it
by 2030
Improvement
in the energy efficiency ~1% per yearSince 2000, routine flaring of associated gas has been banned on new projects
Achieved 10% reduction in energy use since 2015
Slide29Total Energy and ClimateImproving Energy Efficiency in Our Products and Services
Since 2009, the
Total Ecosolutions
program
has promoted smarter energy consumption, offering consumers innovative, high
-performance
solutions.
1.7 Mt
of CO
2 avoided in 20151the equivalent of the annual emissions of nearly 190,000 Europeans over 80 products and services under the Total Ecosolutions label
Slide30Materials to make vehicles lighterPolypropylene body parts trim 100kg off the weight of a standard vehicle
Fuel consumption: -0.4 liters/100km
Carbon emissions: -10 grams/km
Total Energy and Climate
Working with Our Customers to Reduce
Energy Consumption
E
nergy
audit
Helping to reduce the average company's energy consumption by between 2% - 5% and save up to 30
% on energy bills with our JV partnersPromoting the sharing economyTeaming up with a global leader in ride sharing
Slide31SECTION 3
Preparing
For The Future
Slide32Total Energy and ClimateKey R&D Figures
R&D spending of
$7.4B
$
150M
invested
1,000
R
&D
partnerships
between 2015 and
2019
including 25% on cleantech and environmental issues
in minority interests in 25 innovative start-ups addressing the energy issues of the future with Total Energy Ventures
with other industrial companies,
universities and dedicated research organizations
Close to4,500 R&Demployees
Slide33Total Energy and ClimateKey R&D Priorities
Carbon Capture Utilization and Storage
Developing partnerships With universities, startups and industrial collaboration
Expanding energy efficiency
Photovoltaic research, energy storageReliability
,
affordability
Digital energy systems
Slide34Total Energy and ClimateOur 2016 Report
Slide35TOTAL ENERGY AND CLIMATE
Thank You
F
or Your Attention
Slide36Total Energy and ClimateDisclaimer and Copyright Reservation
Disclaimer
This presentation may include forward-looking statements within the meaning of thePrivate
Securities Litigation Reform Act of 1995 with respect to the financial status, results
of operations, business, strategy and plans of TOTAL GROUP that are subject to risk factors
and
uncertainties caused by changes in, without limitation, technological development
and
innovation, supply sources, legal framework, market conditions and political or economic
events. TOTAL GROUP does not assume any obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise. Further information on factors that could affect the company’s financial results is provided in documents filed by TOTAL GROUP with the French Autorité des Marchés Financiers
and the US Securities and Exchange Commission. Accordingly, no reliance may be placed on the accuracy or correctness of any such statements. Copyright All rights are reserved and no material in this presentation may be reproduced without the express written permission of the TOTAL GROUP.The TOTAL GROUP is defined as TOTAL S.A. and its affiliates and shall include the person and the entity making the presentation
Slide37TOTAL ENERGY AND CLIMATE
Appendix
Slide38Total Energy and ClimateNew Environmental Targets
TOTAL WILL
Continue to reduce GHG emissions
80
% reduction of
routine flaring
to be eliminated by
2030
1
~1% per year improvement in the energy efficiency of the Group’s operated facilitiesDECREASE SO2 AIR EMISSIONS BY 50%
Maintain hydrocarbon content of water discharges below< 30mg/l per month open sea/offshore sites< 15mg/l per month onshore and coastal zones
Aligned with the 2010-2020 period 1 World Bank’s Zero Routing Flaring initiative
Slide39Develop biodiversity action plans for production sites in protected areas
Does not conduct oil and gas exploration or production operations at natural sites included on the UNESCO World Heritage
Listor in oil fields under the sea ice in polar
areas
Reclaims more than half of its waste and
will continue its efforts
Total Energy and Climate
New
Environmental Targets
Aligned with the 2010-2020 period