France’s Total is converting its petroleum processor in La Mède to make biodiesel. This news release says the $216 million conversion will make the facility France’s first biorefinery and will stop refinering petroleum by the end of 2016.
“There are three possible responses to the crisis in the European refining industry. The first is to throw in the towel. The second is to do nothing and perish. The third is to innovate and adapt to meet shifting demand trends. The central focus of Total’s plan for our French refining business is to realign our operations and products to changing markets. The plan that we are presenting today offers sustainable solutions for the Donges and La Mède refineries. It gives both facilities a future and strengthens Total’s refining base in France,” commented Patrick Pouyanné, Chief Executive Officer of Total. “As was the case for the project to secure the future of the Carling plant in eastern France, the master words for the plan’s deployment are: anticipation and consensus. Total will implement this industrial transformation without layoffs or imposed geographical transfers for non-exempt employees.”
Total officials say the move is a response to industry and market trends, as European demand for petroleum products has declined 15 percent since 2008, shrinking outlets for the continent’s refining industry.