Total plans €400M upgrade for low-sulfur fuels at France’s Donges refinery

Total is investing €400 million to upgrade its Donges refinery in France to capture profitable new markets with low-sulfur fuels to meet new European Union (EU) specifications, the company announced on Thursday.

The company says it will build new units at Donges to win new markets for the site in Europe.

"This substantial investment will significantly improve the refinery’s profitability and secure its long-term future," Total said in a statement.

The construction of new refining units on the site will go together with the rerouting of an existing rail line that cuts through the refinery and adversely impacts its competitiveness, the company noted.

Total says that the Donges refinery currently lacks desulfurization capacity, meaning a significant proportion of its fuels are exported because they no longer meet EU specifications.

As a result, the €400 million project entails building a new desulfurization unit for intermediate feedstock, which will be used to produce low-sulfur fuels. Additionally, Total will also construct a new steam methane reformer (SMR) to produce the hydrogen needed for the desulfurization unit.

Total says the SMR will be built by a contractor under a long-term hydrogen supply contract with the refinery. Information on the contractor was not disclosed.

Total says it is planning the process design package and FEED to be finalized in 2016.

Depending on the progress of procedures concerning the rail line, the contracts to build the new units will be awarded in 2017, with a target commissioning date of 2019.

"The central focus of Total’s plan for our French refining business is to realign our operations and products to changing markets," Total CEO Patrick Pouyanné said. "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.'

Also on Thursday, Total announced a €200 million project to convert its La Mède refinery in France to the country's first biorefinery.