Registration document 2007 - Total.com

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Business overview
Upstream - Gas & Power
Power and Cogeneration
As a refiner and petrochemicals producer, TOTAL has interests in
several cogeneration facilities. Cogeneration is a process
whereby the steam produced to turn turbines to generate
electricity is then captured and used for industrial purposes.
TOTAL also participates in another type of cogeneration, which
combines power generation with water desalination, and in gasfired
power generation, as part of its strategy of pursuing
opportunities at all levels of the gas value chain.
The Taweelah A1 cogeneration plant in Abu Dhabi, which
combines power generation and water desalination, has been in
operation since May 2003 and is owned and operated by Gulf
Total Tractebel Power Cy, in which TOTAL has a 20% interest.
Taweelah A1 currently has a total power generation capacity of
1,430 MW and a water desalination capacity of 385,000 m 3 per
day. Near the end of 2006, it was decided to develop an
additional 250 MW of capacity, which is expected to enter into
operation in 2009.
In Thailand, TOTAL owns 28% of Eastern Power and Electric
Company Ltd (EPEC) which has operated the combined cycle
gas power plant of Bang Bo, with a capacity of 350 MW, since
March 2003.
In Argentina, in November 2006 TOTAL sold its 63.9% interest
in Central Puerto SA, a company which owns and operates
gas-fired power stations in Buenos Aires and in the Neuquén
region, with a total capacity of 2,165 MW. In December 2006,
TOTAL also sold its 70% interest in Hidroneuquen, a company
owning a 59% interest in a hydroelectric dam located in the
Neuquén region.
In Nigeria, TOTAL and its partner, the state-owned NNPC, are
participating in two projects to construct gas-fired power
generation units. These projects are part of the Nigerian
government’s policy to develop power generation, stop gas
flaring and privatize the power generation sector:
• The Afam project, part of the SPDC joint-venture in which
TOTAL holds a 10% interest, concerns the upgrading of the
Afam V power plant capacity, to 276 MW, and the
development of the Afam VI power plant, with a planned
capacity of approximately 600 MW; and
• The OML 58 project, part of the EPNL joint-venture in which
TOTAL holds a 40% interest (operator), concerns the
development of a new 400 MW combined-cycle power plant
near the city of Obite.
In the UK, in September 2005 TOTAL sold its 40% interest in
Humber Power Ltd, which owns a gas-fired combined-cycle
power station.
TOTAL – Registration Document 2006
Renewable Energy
As part of its sustainable development policy, TOTAL is
developing its position in renewable energy, with a particular
focus on solar-photovoltaic energy, where the Group has been
present since 1983, and wind power. In addition, since 2005
TOTAL, has been participating in the development of marine
energy, another promising technology for renewable energy.
Solar-photovoltaic power
In solar power (silicon-crystal technology), TOTAL manufactures
photovoltaic cells (Photovoltec), solar panels and designs solar
systems (TENESOL). The Group is also involved in financing
projects for rural electrification (Temasol in Morocco and KES in
South Africa).
In January 2006, TOTAL increased its interest in Photovoltech
from 42.5% to 47.8%, a company specialized in manufacturing
photovoltaic cells. Photovoltech sales rose to approximately
44 M€ in 2006, from 25 M€ in 2005. Due to strong demand for
and the successful marketing of its products, Photovoltech is
planning to increase its total production capacity from 20 MWp/y
to 80 MWp/y by the end of 2007. Civil engineering for the new
production facilities to increase capacity began in the fall of 2006.
TOTAL holds a 50% interest in TENESOL, its partnership with
EDF, which designs, manufactures, markets and operates
solar-photovoltaic power systems. TENESOL’s consolidated
sales decreased by approximately 8% between 2005 and 2006,
amounting to approximately 134 M€ in 2006, compared to
145 M€ in 2005, the equivalent of an installed capacity of
33 MWp. Its principal markets are for network connections in
Europe (Germany and Spain) and for decentralized rural
electrification and telecommunication systems in the French
Overseas Territories. TENESOL owns two solar panel
manufacturing plants: TENESOL Manufacturing in South Africa,
with an annual production capacity of 35 MWp, and TENESOL
Technologies in the region of Toulouse, France, with an annual
production capacity of 15 MWp.
TOTAL is pursuing decentralized rural electrification activities by
responding to call for tenders from authorities in several
countries, including Mali, Morocco, Senegal and South Africa.
In South Africa, an ongoing project to equip 15,000 households,
led by Kwazulu Energy Service Company (TOTAL, 35%), had
equipped nearly 9,000 households by the end of 2006.