Total eyes further HVO expansion

Total said today that it plans to add an additional 300,000 t/yr of hydrotreated vegetable oil (HVO) production capacity in Europe. It is also considering introducing HVO capacity at refineries in Texas and South Korea to help meet its goal to produce 5mn t/yr by 2030.

The 300,000 t/yr of extra production capacity in Europe will come from co-processing at existing facilities. The firm plans to bring the production on stream in 2022-24. This is in on top of 400,000 t/yr of HVO production at the Grandpuits refinery near Paris, which Total plans to convert to a biorefinery by 2024.

The company said it is also evaluating the possibility of co-processing HVO at its 240,000 b/d Port Arthur refinery in Texas and 240,000 b/d Daesan refinery in South Korea. It estimates that the co-processing projects in Europe and Texas would cost around $500/t, while the estimated cost for the Grandpuits and Daesan projects is $750/t. This compares with capital expenditure (capex) of around $600/t for Total's existing 500,000 t/yr HVO plant at La Mede.

Total said La Mede remains in a "ramp-up phase" and will produce around 300,000t of HVO this year. La Mede's capex is significantly lower than Finnish refiner Neste's Singapore unit and US refiner Valero's Saint Charles plant, according to Total.

The company said it plans to run 70pc of its feedstock at Grandpuits from used cooking oil (UCO) and animal fats (tallow). At a standard conversion rate of 1.13t of feedstock to 1t of HVO, this would amount to around 315,000 t/yr of UCO and tallow at Grandpuits. Total said it has already secured 50pc of the supplies needed.

By Adam Porter