30 - Integrating Climate into our Strategy Biofuels: New Production Capacity As a leading refiner, we are continuing to responsibly adapt our production base in Europe, against a backdrop of structural decline in demand for petroleum products. The fast-expanding biofuels market offers new opportunities. As a producer with over 20 years of experience and the leading marketer in Europe, we are well positioned to expand in this energy segment. BIOTFUEL, A PILOT UNIT FOR ADVANCED BIOMASS We are developing advanced biomass conversion processes on a commercial scale. To achieve this, we form R&D partnerships and acquire interests in start-ups working in the field. After five years of R&D, construction of the BioTfueL pilot plant has begun at our Dunkirk site in France. Production is set to begin in the first quarter of 2017. The project, which was launched with five European partners, aims to develop an innovative process to gasify biomass, such as agricultural by-products and forest waste, to produce high-quality biodiesel and biojet fuel. TOTAL AND AMYRIS BIOJET USED FOR COMMERCIAL FLIGHTS The drop-in renewable jet fuel developed by Total and Amyris, which contains up to 10% blends of biocomponents, obtained ASTM International certification in 2014, authorizing its use in civil aviation worldwide. Since October 2014, Air France has used it for its demonstrations of eco-responsible technology. The fuel was used until January 2016 for weekly flights between Toulouse and Paris and will power 23 flights between Nice and Paris in May 2016. A Closer Look Transportation accounts for almost one-quarter of energy-related greenhouse gas emissions and two-thirds of final oil consumption. Under the 2°C scenario, demand for liquid fuel for transportation is expected to remain relatively stable to 2035. The projected 20% drop in oil demand will mainly be offset by increased use of biofuels. At present, biofuels only account for 3% of global energy supply, but production is forecast to double over the next 10 years, particularly since the European Union is targeting 10% renewables in the transportation sector in 2020. Sources: IEA - Energy Technology 2015 – World Energy Outlook 2015 – CO2 Emissions from fuel combustion 2015. LA MÈDE A World-Class Biorefinery in France To make our La Mède site in southern France sustainably competitive, we plan to convert some of its units to manufacture 500,000 tons of biofuels a year — mainly biodiesel, but also biojet fuel and feedstock for bioplastics — starting in 2017. A high-quality biodiesel, hydrotreated vegetable oil (HVO), will be manufactured primarily from used oils, as well as renewable feedstock, thanks to new French technology developed by IFP Énergies Nouvelles and marketed by its affiliate Axens. The HVO’s specifications comply with the sustainability criteria set out in the E.U.’s Renewable Energy Directive, known as RED1. To eventually diversify the sources and types of biomass used, the biorefinery is being designed to treat all types of oil. 1  irective 2009/28/EC on the promotion of the use of energy from renewable sources. Starting January 1, 2017, D the greenhouse gas emission savings resulting from the use of biofuels must be 50% compared with the use of a reference fossil fuel, versus 35% today.