2007 Annual Report of IFP

Page 1

2007

Annual report 2007


Controlled CO 2

Diversified fuels

Fuel-efficient vehicles

Clean refining

Extended reserves


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Capturing and storing CO 2 to combat the greenhouse effect As the bulk of CO2 emissions result from energy use, efforts to reduce them must be combined with efforts to capture CO2 wherever possible, i.e. primarily at industrial sites. IFP is developing processes for CO2 capture, transport and underground storage, in order to prevent its release into the atmosphere.

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Diversifying fuel sources To alleviate the transport sector’s dependence on oil, IFP is working on transforming biomass, gas and coal in a bid to develop the fuels of tomorrow, such as biofuels. It is also examining longer-term solutions, such as hydrogen.

Five strategic priorities 3

Developing clean, fuel-efficient vehicles Supported by its cutting-edge experience in the field of powertrains, acquired in partnership with the world’s major automobile manufacturers, IFP designs and perfects technological solutions aimed at constantly reducing fuel consumption and minimizing the environmental impact of vehicles.

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Converting as much raw material as possible into energy for transport On the strength of its recognized know-how in clean refining processes and petrochemicals, IFP is developing technologies that will make it possible to produce larger amounts of environmentally-friendly fuels and composites.

Pushing back the boundaries in oil and gas exploration and production Because oil and gas exploration has so far been carried out only at the most accessible sites, IFP is inventing and supplying the technologies needed to exploit reserves that are as yet untapped, making it possible to go further and deeper, working more efficiently and for longer.

Annual report 2007


A public-interest mission IFP is a world-class public-sector research and training center, aimed at developing the technologies and materials of the future in fields of energy, transport and the environment. It provides public players and industry with innovative solutions for a smooth transition to the energies and materials of tomorrow – more efficient, more economical, cleaner and sustainable.

Mixed funding IFP fosters knowledge transfer between long-term fundamental research, applied research and industrial development in keeping with the recommendations of the Barcelona European Council held in March 2002. It is funded both by a State budget and by resources provided by private French and foreign international partners.

IFP

Objectives and results

Human resources and expertise Representing more than 50 professions, from geological engineers to powertrain engineers, IFP’s 1,720 staff, based in Rueil-Malmaison and Lyon, form a unique body of specialists and an unparalleled network of expertise. To successfully carry out their research work, they have access to an extremely high-quality technical environment, in terms of both facilities and testing resources.

Graduate training programs for engineers An integral part of IFP, the IFP School offers graduate training programs for engineers designated to meet the needs of industry. The quality of its teaching, combined with the extent and diversity of its partnerships with universities and industry, make it a prominent international force. Every year, more than 500 students from around the globe graduate from the school, fully prepared to take up the challenges posed by the energies of the future.

A driving force in the industrial development of its research results In a constant drive for progress, IFP aids the conversion from invention to innovation, from patent to product and from research to industry. Since its inception, IFP has therefore been a major driving force for industrial development, with more than 40,000 patents to its credit filed in France and throughout the world (including more than 12,800 active patents). From the outset, IFP has been committed to seeing the outcome of its research exploited by industry. This has prompted it to support the creation of some thirty companies, which have themselves become significant employers and exporters. A core component of the policy of technology transfer to the market, these businesses span all the research fields in which IFP is active: from oil research, consultancy and engineering to the supply of products, equipment and services, together with New Energy Technologies (NET).


1,720

159 basic patent applications filed in 2007

including 52 in the field of new energy technologies, and 717 rights created abroad. The total portfolio represents 12,819 active patents meaning that IFP is ranked amongst the top 15 patent applicants in France according to the number of patents published by INPI (Institut national de la propriété industrielle) in 2007. In addition, IFP is the 7th largest French patent applicant in the United States (in terms of the number of patents granted in 2006).

total full-time equivalent workforce including 1,109 researchers (managers and technicians). 42% of the managers hold doctoral degrees and some fifty researchers hold a national accreditation to direct research (HDR).

213

articles published in international scientific journals including 189 listed in the ISI (Institute for Scientific Information) database. In addition, four new books written by IFP researchers were published in 2007.

307,4

million euros operating expenses

including €246,3 million for R&D. Product (1) : • budget allocation: €166,5 million • other products: €106,9 million • dividends: €37,9 million (1)  Excluding exceptional results on transfer of securities


Contents


Chairman’s report

06

Highlights

08

Corporate governance

12

A century of transition

15

A commitment to the future

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Innovation-oriented scientific action and policies

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From research to industry

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Chairman’s report IFP at the heart of the challenges associated with the energy transition 2007 was a year in which energy prices continued to soar – with the price of a barrel of crude oil reaching the 100 dollars threshold for the first time ever at the beginning of January 2008. It was also a year that was marked by the “Grenelle de l’environnement” forum on the environment, the first ever consultation initiative between the French state and representatives from various sectors of society, with a view to defining a plan to support ecology and sustainable planning and development. These events confirmed the evolutions at play in the energy and environmental contexts along with the relevance of IFP’s strategic position, adopted almost four years ago. The transition towards an energy system concerned by the problems of securing supplies and compatible with constraints linked to climate change and sustainable development is gradually becoming established. In this context, it is important that we speed up the implementation of concrete solutions to enable us to find appropriate responses to the major challenges facing our societies. More than ever before, IFP intends to be at the forefront of research, training and information in the fields of energy, transport and the environment, both in France and abroad. Its position at the crossroads of science and industry coupled with the commitment and talent of its researchers mean that IFP is well set to meet the challenges associated with the energy transition. The new EPIC, (state-owned industrial and commercial establishment) status, effective since July 2006, has enabled IFP to strengthen its relations with regulatory authorities and establish itself as a full partner in the evolution of the French Research and Innovation System (SFRI). Carnot IFP-Engines, for example, in the field of engine-fuel systems for transport, has been successfully established to promote partnership research and the dissemination of scientific and technological innovation, particularly to SMEs and SMIs. IFP’s role in the various competitiveness clusters has been reinforced. IFP enjoys constructive relations with the French National Research Agency (ANR) and has been invited to manage two new programs, “Energy Storage” and “Chemistry and Processes for Sustainable Development”. In addition, the number of IFP researchers holding a national accreditation to direct research has increased significantly. Finally, the framework agreement with the CNRS was renewed, providing yet further illustration of IFP’s policy commitment in terms of scientific collaboration. 2007 saw IFP take some significant steps forward in each of the key themes for success defined in 2006. First of all, the Objectives contract, signed at the start of 2007 with the public authorities, was rolled out internally. Programs and resources have thus been effectively refocused and some of the budgetary objectives set have already been exceeded, particularly with respect to New Energy Technologies (NET), such as CO2 capture and storage and biofuels.

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«

Its position at the crossroads of science and industry coupled with the commitment and talent of its researchers mean that IFP is well set to meet the challenges associated with the energy transition

...

Innovation programs have been reinforced with the industrialization of software upstream, examples being OpenFlow and Coores. The latter has been designed to be the reference for CO2 storage. Downstream, the Hygo blockbuster, the main objective of which is to transform vacuum distillates into high-quality kerosene and diesel, is a success. IFP’s teams have played a key role in launching pilot projects in the field of second-generation biofuels using biochemical technologies and some significant successes have been achieved with hybrid vehicles and low-CO2 powertrains. IFP has continued to pursue its international activities, with a marked increase in the number of IFP School satellite initiatives. As a consequence, two new programs have been launched, one in the refining field in Venezuela and the other in the field of petrochemicals in Russia. IFP has also seen some noteworthy successes in various Middle-Eastern countries, in Algeria and in Brazil. What’s more, the School enjoyed a record year in 2007 with over 600 students in total, enrolled across all courses, more than 50% of whom are foreign nationals. Given the rapid changes occurring in our environment, flexibility in terms of human resources management remains a major objective for IFP. We have to be focused and anticipate at all times to ensure that we have the appropriate expertise, both in terms of quantity and quality, to be able to meet our objectives. The environment we are working in requires a continuous readjustment of the expertise we have and the people who provide this expertise need to demonstrate increasing levels of adaptability. IFP supports its employees, offering them training programs, mobility and professional development opportunities that are most appropriate for the variety of needs we face. In 2007, several themed mobility initiatives were successfully implemented: our applied mechanics expertise was put to good use in the reservoir and engine fields, mineral geochemistry grew and our expertise in physical chemistry was applied to projects covering batteries, catalysis and adsorption. These results have been achieved thanks to the hard work and perseverance of IFP’s employees. Their continued and increasingly intensive efforts will keep us at the cutting-edge of efficiency and innovation as we strive to meet the challenges of the energy transition. Olivier APPERT

IFP’s Chairman and CEO

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Highlights 1

CSLF: promoting the development of CO2 capture, transport and storage The French ministries of Research and Industry asked IFP to organize the annual CSLF (Carbon Sequestration Leadership Forum) which took place from March 25 to 28, 2007 and brought together more than 170 participants. The CSLF is an intergovernmental forum founded in 2003 by the American Department of Energy (DOE). There are around twenty member countries involved and they are joined by the European Commission. Its objective is to promote the development of CO2 capture, transport and storage through the identification of the associated constraints, both technological and non-technological (economic, regulatory, political or societal). The forum was an opportunity to discuss and share the difficulties encountered by the various projects focusing on these themes. One of the highlights of the event was the workshop on the theme “Overcoming Barriers to CCS Deployment”, which examined the industrial roll-out of this promising technology.

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Annual CSLF meeting

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The Vehgan demonstration vehicle

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Vehgan : a hybrid natural gas demonstration vehicle IFP’s research in the field of CO 2 emission reduction has led to the development of an urban demonstration vehicle. Applied to a Smart car, the concept combines the advantages of downsizing, the use of natural gas and hybridization. This demonstrator has been developed within the ANR-Predit project in partnership with Gaz de France, Valeo and Inrets. IFP adapted the engine to run on natural gas and developed the IC engine and automatic gear box control algorithms, together with those dedicated to the optimization of the vehicle’s onboard energy management. The hybrid StARS 14V+X system, supplied by Valeo, controls the Stop & Start function and energy recovery during deceleration phases. It also provides additional engine torque during acceleration. Comparable in terms of performance and drivability to a standard gasoline vehicle, this demonstrator has already demonstrated reduced CO2 emissions at 84 g/km. What’s more, the vehicle meets the future Euro 5 pollution control regulations. Efforts to optimize the vehicle further still are underway, with a view to reducing CO2 emissions to below 80 g/km.

Partnership with Petrobras on CO2 storage In August 2007, IFP signed a major joint R&D contract with Petrobras relating to CO2 storage. The storage site selected is located in the Reconcavo basin, in the state of Bahia in Brazil, where Petrobras has been conducting CO2 injection operations for the purpose of enhanced recovery for the last fifteen or so years. This partnership agreement is an opportunity for IFP to gain access to field samples and data in order to validate its experimental methodologies for the characterization of reservoir properties and overburden. IFP will also contribute through its modeling expertise, using its Coores software to simulate the long-term effects of CO2 injection underground.

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Cooperation with Saudi Arabia On May 8, 2007, Olivier Appert welcomed the president of King Abdullah University of Science and Technology (KAUST) Nadhmi A. Al-Nasr, together with the vice-president, Mohamed E. Samaha (responsible for research institutes) to IFP. The meeting was an opportunity for IFP to put forward several joint projects in the fields of research and training that will be discussed at greater length in the coming months. Following the meeting, an agreement was signed setting out the cooperation parameters being considered, as well as the conditions for their implementation.

Nadhmi A. Al-Nasr and Olivier Appert

The aim of the KAUST project is to build an ambitious scientific complex in Saudi Arabia dedicated to research and education. Olivier Appert is a member of the advisory board of the future complex.

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Second generation biofuels: Futurol program In 2007, IFP joined forces with ARD, Inra as well as industrial and financial partners, to work on the Futurol program financed by Oséo.

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Biomass production greenhouse

The aim of the program is to develop a process chain for ethanol production from lignocellulosic biomass (so-called second-generation ethanol, obtained from whole plants). Futurol will last for eight years and includes a pilot phase, with a prototype phase to follow. The objectives of the project are to bring to market a process, technologies and products (enzymes and yeasts) that can be used to manufacture ethanol at a competitive price thanks to a diversified raw material and to develop the most suitable fermentation processes for each raw material configuration.

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In keeping with the principles of sustainable development, over the long term and throughout the sector, the project also aims to obtain the best possible energy and greenhouse gas balances across the entire production chain. Fraca Flow  : fractured fault description software

Marketing of the new generation of software in the reservoir field developed on the OpenFlow platform Knowledge acquired thanks to IFP’s research work in the field of reservoir characterization and simulation has been integrated into software developed on the OpenFlow platform. The basis of all IFP’s geoscience modeling software, this platform comprises data management and maintenance, visualization tools, workflow management and link with external software tools. The platform has led to some important developments enabling Beicip-Franlab to bring to market the first commercial versions of the Condor Flow and Fraca Flow software solutions. Condor Flow enables production data history matching by adjustment of the reservoir model and the geological and petrophysical model. Fraca Flow corresponds to the new generation of the Fraca software for the static and dynamic characterization of fractured reservoirs.

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Highligths

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Reservoir sedimentology wins IFP’s “Yves Chauvin” thesis prize To encourage competition between doctoral students and promote their research, IFP awards an annual thesis prize dedicated to Yves Chauvin, winner of the 2005 Nobel Prize for Chemistry. The jury, chaired by Bruno Chaudret, Chairman of IFP’s Scientific Board, awarded the 2007 prize to Sébastien Rohais for his work entitled: “Stratigraphic Architecture and sedimentary flows on the Southern margin of the Gulf of Corinth (Greece): field analysis, experimental and digital modeling”. This thesis, promoted by Rémi Eschard, research engineer in IFP’s Geology-Geochemistry-Geophysics Division, was prepared in partnership with the University of Rennes under the supervision of professor François Guillocheau. The work’s originality lies in the triple approach adopted to gain a better understanding and more accurately quantify the sedimentation phenomena that control the distribution of oil fields. The acquisition of field data enabled the tectonic and sedimentary evolution of the Gulf of Corinth to be determined. This particular basin lends itself well to the purpose since its recent creation (as far as geologists are concerned!) means that the climate and sea level are well known for the period in question. Digital sedimentation simulation, using the Dionisos software, was then employed to validate the reconstruction through a quantification of sediment volumes in time and space. Finally, experimental modeling was conducted in a tank of sand subject to erosion by controlled rain. Sébastien Rohais was thus able to re-create the sedimentary structures observed in the field and identify the influence of a variety of parameters – particularly climatic – on sedimentation. The consequences of these results for the oil industry and for CO2 storage will be significant.

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Triple approach for studying sedimentation

Characterization of the structure of an organo-metallic material

Synthesis and characterization of new materials for catalysis and adsorption: zeolites and MOFs Heterogeneous catalysis is essential in numerous applications such as fuel, biofuel and olefin production, for example. Similarly, adsorption in microporous solids is the basis for essential separation processes, for example in the production of aromatics. In these fields, the most critical aspect is finding the most suitable material for the target process. Among the materials under consideration, zeolites and organo-metallic hybrids (called MOFs, for Metal Organic Frameworks) represent families of particular interest due to the extremely large number of possible structures. Research work on these microporous materials is being conducted in partnership with laboratories in France (CNRS, Universities of Haute Alsace, Montpellier, Paris-Sud, Versailles-St Quentin, Aix-Marseille, etc.) as well as abroad (Universities of St Andrews, Leuven, Manchester) and is focusing on molecular modeling in order to understand and predict the properties that can be expected of a material with a given structure. Advanced techniques (X-ray diffraction, electronic microtomography) have been used to accurately characterize the structure and porous network of these new materials. As far as zeolites are concerned, molecular modeling during the synthesis phase under hydrothermal conditions has been used to define the additives to be employed in order to obtain a target structure.

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Three original zeolite structures have been synthesized via this method. As for MOFs, IFP synthesized these materials for the first time in 2007 and the Gibbs molecular modeling software tool was used to provide a qualitative and quantitative understanding of the adsorption of gas mixes in MOFs with a view to CO2 capture. More than 2,600 applicants for the 2007-2008 academic year

Annual report 2007


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Record level of industrial sponsorships at the School The 2007-2008 intake represents yet another record for the School, both in terms of student numbers – in excess of 600 students across all disciplines – and the industrial sponsorship rate – more than 88% for engineering courses, i.e. 317 out of 360 students. These industrial partnerships consist in sponsoring students through the provision of grants, offering apprenticeship contracts or seconding employees. The increase covers all courses and can be explained by the significant needs in terms of expertise related to industry’s population pyramid and the development of numerous projects in all the fields covered by the School. In addition, eight offsite degree programs are currently up and running and the students taking these courses are all being sponsored by a national or an international company operating in the countries concerned.

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Seeing in 3D down to a nanometer Electronic tomography allows the nanometric details of the objects under examination to be seen, as in classic transmission electronic microscopy, but it has the added advantage of producing a 3D image of the same details, as with X-ray tomography commonly used in medicine. However, it is difficult, from a mathematical point of view, to reconstruct the object on the scale of a nanometer indirectly and from a collection of two-dimensional images taken from different angles. Mastery of the technology, the development of effective IT tools and the collaborative work of cross-disciplinary teams (mathematicians, IT specialists, analysts, geologists) mean that IFP now possesses a high-performance tool enabling it to more accurately describe the morphology and porous texture of catalysts and adsorbents. After appropriate image processing, electronic tomography quite literally allows us to navigate inside a catalyst granule, to extract relevant quantitative information relating to porosity and observe the location and morphology of activity-promoting metallic clusters. In particular, this technique has helped define the morphology of crystals favorable to certain structure-sensitive catalytic reactions. The work, conducted in partnership with the Institut de physique et chimie des matériaux (Institute of Material Physics and Chemistry) in Strasbourg, puts IFP in the forefront of national research in the field of the 3D observation of solids.

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3D image of a dealuminated zeolite

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Model illustrating the standard diesel/biodiesel mix

Predicting the viscosity of fuels at high pressure using molecular dynamics The new generation of low-consumption Flex Fuel engines needs to be able to run using various types of diesel/biodiesel blends. This requires knowledge of fuel viscosity in extreme pressure injection conditions (up to 2,500 bars). However, obtaining these data from standard correlative models is limited to known compositions and relatively low pressures (less than 1,000 bars). What’s more, the high pressure means that experiments are dangerous and costly. Hence, in order to obtain the viscosity of various fuels under extreme conditions, IFP employs simulation by molecular dynamics, drawing on the basic research conducted at the CNRS and Paris-Sud University. Work carried out up to 2006 had demonstrated that this type of simulation could be used to quantitatively represent the effect of pressure, temperature and chemical structure on the viscosity of several bio components. Results obtained in 2007 enabled these predictions to be extended to fuels, the composition of which can now be measured thanks to two-dimensional chromatography. Due to the very large number of components (more than 250), fuel is characterized by a small number of groups. It has thus been possible to estimate the viscosity of diesel/biodiesel blends under extreme injection conditions. In particular, it is apparent that viscosity increases significantly at high pressure (up to a factor of 10 at 2,500 bars for some blends). These original results will certainly have consequences for fuel specifications and the use of injection systems for the engines of tomorrow.

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Corporate governance Board of Directors (1) State Representatives

Pierre-Franck CHEVET Director General of General Directorate for Energy and Raw Materials, Ministry for Ecology, Energy, Sustainable Development and National and Regional Development Dominique GOUTTE Director at General Directorate for Research and Innovation, Ministry for Higher Education and Research

Emmanuel ROUSSELOT Head of Bureau 3BPEII, Budget Department, Ministry for Finance, Public Accounts and Civil Service Qualified Members Olivier APPERT Chairman Christian BALMES Chairman and CEO of Shell France Yves Bamberger R&D Director, EDF Group Michel BÉNÉZIT Executive Vice-President and President of Refining Marketing, Total Group Robert BRUNCK Chairman and CEO of CGGVeritas Yves COLLIOU Chief Operating Officer, Gaz de France Claire DUPAS Director, École normale supérieure de Cachan Jacques LACAMBRE Chairman of the Mov’eo competitiveness cluster

Michèle PAPPALARDO Commissioner-General for Sustainable Development, Ministry for Ecology, Energy, Sustainable Development and National and Regional Development Staff representatives

Michel CASTAGNÉ Denis DEFIOLLE With the attendance of

Sophie GALEY-LERUSTRE Director of Directorate for Energy and Mineral Resources, Government Commissioner Jean-Pierre MORELLE Head of the Economic and Financial Mission for Petroleum, Chemicals and Geological Research

GRANT THORNTON, DELOITTE & ASSOCIÉS Auditors (1) as of April 1, 2008

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The Executive Committee General Management Olivier APPERT Chairman and CEO Édouard FREUND Executive Vice-President Georges PICARD Executive Vice-President Directors of the Business Units Maurice BOUTÉCA Exploration-Production Patrick SARRAZIN Refining-Petrochemicals Philippe PINCHON Powertrain Engineering Jean-Luc KARNIK Education and Training Dominique HENRI Industrial Development Other members of the Executive Committee Yves BOSCHER Human Resources Director Philippe UNGERER Scientific Director Henri MARION Financial Director Pierre-Henri BIGEARD Director of IFP-Lyon Jean-Jacques LACOUR Strategic Deployment Director


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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Maurice BOUTÉCA Patrick SARRAZIN Dominique HENRI Philippe UNGERER Olivier APPERT Georges PICARD Édouard FREUND Jean-Jacques LACOUR Pierre-Henri BIGEARD Jean-Luc KARNIK Yves BOSCHER Henri MARION Philippe PINCHON

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A century of

transition


When it comes to energy, the 21st century will be a century of transition. Although the post-oil era is not yet here, there is no doubt that our oil and gas resources will be unable to keep pace with growing world energy demand indefinitely. Over the course of this century we will need to make better use of existing resources, develop new reserves and diversify energy sources. We will also have to tackle climate change caused by greenhouse gas emissions. This dual economic and environmental constraint is the cornerstone of IFP’s strategy for the coming years.

The world energy context

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A transitional period

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The 21st century will doubtless be a century of transition. That is what energy experts – and in particular those working at IFP – unanimously believe today. A transition between the current situation, in which hydrocarbons – and more specifically oil – dominate world energy consumption, and a sustainable energy situation based on greater energy efficiency and the diversification of energy sources. A transition that can only be conceived within a context of sustainable development, both in terms of protection of the environment and durability of supply sources. This observation, which underpins IFP’s entire strategy, is rooted in an analysis of the current situation and foreseeable developments. This situation is marked by three challenges that we are now forced to acknowledge: the inevitable growth in world energy demand, the finite nature of fossil reserves and climate change.

The world energy context

An ever-increasing demand World energy demand is expected to continue its inevitable rise, fuelled by demographic and economic growth, particularly in developing countries. According to the IAE (International Energy Agency) trend scenario, world primary energy demand could reach more than 17.7 Gtoe in 2030, i.e. an annual growth rate of 1.8% over the next 25 years for the reference scenario (+1.3% annually in the alternative scenario).

Limited resources By their very nature, fossil energy resources are not inexhaustible. Although technological advances have made it possible to push back the boundaries of these resources, and will continue to do so, the possibility that oil production may peak should nonetheless be taken seriously, even if the date at which this might

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happen is still uncertain. This uncertainty stems from the inherent difficulty of accessing field data held by national and international oil companies and from the fact that reserves correspond to discovered oil volumes that we can be almost certain will be produced, given the environment and existing technologies. In other words, what are not considered to be reserves today may well be so tomorrow, mainly as a result of technological advances and changes in the economic context (price per barrel, tax scheme, etc.).

1.8% the annual growth rate in world primary energy demand witch could reach 17 Gtoe in 2030.

Climate change Today, no economic and energy policy can ignore the issue of climate change driven by the greenhouse effect. Although it may seem that we have been slow to take this phenomenon on board considering what is at stake for our planet, awareness of the issue is nonetheless growing. Nowadays, economic development – and the resulting energy consumption – can only be conceived from a sustainable perspective, i.e. after factoring in this issue of climate change. This primarily concerns the energy sector, currently responsible for around 65% of greenhouse gases of anthropic origin.

A global issue Today, therefore, controlling energy resources and tackling the greenhouse effect have become a global issue. That is why IFP defines its strategy as part of a long-term vision, consistent with the broad lines of French energy policy, at a national, European and international level.

Controlling the use of energy resources and reducing greenhouse gases are global issues. That is why IFP defines its strategy as part of a long-term vision, consistent with the broad lines of French, European and international energy policies

...

DaphnĂŠ Lorne Economics and Information Watch and Management Division

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The global growth in energy demand is predominantly driven by two major sectors: electricity production and transport. Electricity can be produced using a variety of energy sources: coal, natural gas, renewable energies, nuclear power and, to a small extent still, oil and gas products. The range of options is therefore relatively broad, enabling different countries to develop particular sectors on the basis of their own specific energy priorities and economic and environmental constraints. The same cannot be said, however, for the transport sector, the end-user of more than 50% of the world’s oil consumption.

A transitional period

Transport is 97% reliant on oil Today, land, air and sea transport are still 97% reliant on oil. This situation could well persist for two fundamental reasons. The first stems from the fact that although they already exist, alternative energies – be they biofuels, NGV (Natural Gas for Vehicles), synthetic fuels or, in the longer term, electricity and hydrogen – would, for the time being, be unable to replace oil on a massive scale. Today, these energies account for less than 3% of the total energy used in the transport sector. The second reason is the marked inertia inherent in energy systems. For example, in the automobile industry, technologically-speaking, the time that elapses between an initial idea, actual development and final marketing via a new vehicle range can be significant. Dissemination of a new technology throughout vehicle stocks also takes several years: in industrialized countries, almost 20 years go by between the start of marketing and dissemination to all the vehicles on the road. Lastly, and in addition, the demand for mobility is liable to grow to keep pace with economic development and the demand for traditional fuels – gasoline and gasoil – could rise sharply. A massive switch to another energy

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source can only be achieved gradually over several decades therefore.

Preparing for tomorrow’s changes today Fossil fuels will therefore continue to be essential in the coming years and will form the crucial link to a new era. This analysis forces energy decision-makers – institutions and economic players – to initiate the necessary changes now, starting with two crucial challenges: diversifying energy resources and tackling climate change. The measures to be taken have four main objectives: to optimize the use of oil and gas production, to regenerate existing reserves, to use alternative energy resources to oil and to initiate a determined drive to reduce greenhouse gas emissions associated with the use of fossil fuels. This approach is all the more legitimate as oil prices today are extremely high and world experts see no reason for this to change for any length of time in the coming years. We are entering an era, therefore, in which the use of an optimized traditional energy source, namely oil, will co-exist with alternative solutions in the transport sector. These will gradually allow the sector to emerge from an almost

total reliance on hydrocarbons. This energy portfolio will allow society to undergo a smooth transition towards the gradual emergence of new substitutes.

A necessarily gradual approach to change The changes that will occur can only be accomplished very gradually: there will be no sudden replacement of oil. These changes simultaneously concern the better use of existing reserves, to avoid wasting the raw material (improved recovery rates and the uncovering of as yet undiscovered fields), the development of unconventional resources, such as extra-heavy crude oils, which exist in significant quantities in Venezuela and Canada, and the production of deep underground and ultra-deep offshore reserves. The changes also concern research and development in the field of alternative fuels obtained from natural gas, biomass, coal and hydrogen production. In other words, the objective is to create a sufficiently broad energy portfolio. Finally, it will be necessary to control CO 2 emissions, firstly by capturing it at industrial sites and storing it geologically, and secondly, by reducing the fuel consumption of vehicles. It is on the basis of these requirements that IFP has defined its strategy.

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IFP is researching technologies and materials with a view to developing alternative fuel solutions to oil in the transport sector making it possible to gradually move away from an almost total reliance on oil and gas

...

Pierre Marion Economics and Information Watch and Management Division

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A commitment to the

future


The 2006-2010 Objectives Contract linking the State to IFP emphasizes the determination to strengthen IFP in its scientific research, innovation, training and information missions hinged around five complementary strategic priorities. Midway through the contract, an important turning point has already been reached, with a rapid acceleration in the fields of the CO2 capture-transport-storage chain and fuels produced from biomass. For these fuels, major demonstration operations for secondgeneration biofuel technologies are currently being prepared and represent innovative concepts in the field of hybrid vehicles. Generally speaking, the relevance of the research and development program and the associated economic model is confirmed by the commercial success of our subsidiaries, along with the creation of new industrial outlets.

Capturing and storing CO2 to combat the greenhouse effect

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Diversifying fuel sources

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Developing clean, fuel-efficient vehicles

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Converting as much raw material as possible into energy for transport

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Pushing back the boundaries in oil and gas exploration and production

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The IFP School

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90%

is the CO 2 concentration in flue gases produced using the oxycombustion process to capture CO 2 .

More than a third of global CO 2 emissions are produced by concentrated sources (thermal power plants, cement works, refineries, etc.). The capture of CO 2 from these sources, along with its storage, has become a priority. IFP is fully committed to researching new technologies in the field of CO 2 capture, transport and storage; the expertise required to develop these areas is the same expertise employed in oil production. Today, IFP is an important leader in this field at a European level. For example, it heads the Inca-CO 2 project aimed at coordinating European programs with international programs, as well as the Coach project aimed at getting the European Union and China to work together to pave the way for the transition to clean coal-fired power stations. IFP is taking part in or coordinating several projects funded by the ANR in partnership with numerous French universities and industry players. These projects concern the capture, transport and storage of CO 2. IFP is involved in a raft of European projects, including CO 2 ReMoVe (storage) and Cesar (Capture), and, notably, leads the Castor project, which has led to the installation of a demonstration unit for CO 2 capture in Denmark.

CO2 capture The post-combustion capture stage, consisting in separating CO2 from the other constituents of flue gases (water vapor, nitrogen, etc.), represents 70% of the total cost of the process, i.e. between 40 and 50Â euros per tonne of CO2 captured. New, more economical processes must therefore be developed.

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Capturing and storing CO 2 to combat the greenhouse effect Converging scientific data on global warming reveal the urgent need to roll out technologies cutting greenhouse gas emissions on a worldwide scale. Increasing energy demand means that it will not be possible in the near future to abandon fossil fuels (oil, natural gas and coal), which are the main emitters of greenhouse gases. In order to reconcile the use of these resources with control of the emissions involved in climate change, CO 2 capture and storage are highly promising options with significant economic and industrial implications.

Several technological avenues are being explored: the first of these consists in adapting the capture processes using chemical solvents already developed by IFP for the deacidification of natural gas. It is this type of post-combustion capture that is the focus of the European Castor project. As part of this project, IFP developed a model accurately reproducing the measurements made on the absorption column in 2007. The second research avenue being explored by IFP is aimed at identifying new solvents requiring less regeneration energy, which are also economical to produce and compatible with environmental requirements. New equipment, in particular new column packings, with a large contact surface and low pressure losses, are also being developed to improve the efficiency of the process and reduce the size and cost of installations. Finally, IFP is working on breakthrough processes designed to very significantly cut the cost of capture, such as demixing amines, a process that has been patented by IFP and in which only the amine having reacted needs to

be regenerated, significantly reducing the overall cost. Another CO 2 capture technology consists in combustion in the presence of oxygen instead of air. By concentrating CO2 in effluents, this method makes capture easier. This process, which is known as oxycombustion, uses oxygen almost pure as a comburent and leads to the production of flue gases with a 90% CO2 concentration. As part of the ANR-TACoMA project being run in collaboration with Gaz de France, LCSR, LGP-UTC and Total, IFP is developing a pilot unit for the oxycombustion of heavy fuels without external recycling. In particular, work is focusing on the design of the burner, which has a toroidal-type configuration. In order to avoid the phase of separation of oxygen from air upstream, which is particularly costly in terms of energy consumption, IFP is also working on Chemical Looping Combustion (CLC) technology. This process is used to convert a hydrocarbon fuel directly into CO 2 and H2O. The oxygen is supplied via a metal oxide, alternately oxidized by air and reduced by the fuel. Still in the same field, IFP is

coordinating the ANR-CLC-MAT project in partnership with Cirimat, the École des Mines de Nantes, Gaz de France, Marion Technologies and Total for the development of reactive materials. In addition to capture processes, the other approaches being considered to cut the CO 2 emissions of industrial thermal installations consist in acting on the characteristics of the fuel. For example, as part of the ANR-CATHY project being implemented in collaboration with Atanor, Cethil, Gaz de France and Lace, IFP is coordinating studies designed to assess the combustion performance of mixtures composed of hydrogen and natural gas on different radiant burner configurations. Likewise, as part of a spin-off project, IFP is developing a new innovative technology for cogeneration from biomass (Cogebio). This patented concept, based on the principle of the external combustion gas turbine, substantially increases the global efficiency of this type of installation.

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Capturing and storing CO2 to combat the greenhouse effect

Transporting and injecting CO 2 Currently, for the needs of the oil industry, CO 2 is transported in gas pipelines, in a supercritical state. Given the cost of the necessary compression installations, IFP is developing a patented alternative solution to compress the mixture of CO 2 and related gases (oxygen and nitrogen mainly) using a polyphase pump. The studies conducted by IFP in this field also concern the impact of impurities resulting from capture on the thermodynamic properties of the fluid transported.

Geological storage of CO 2 Today, three storage solutions are under consideration to ensure the long-term sequestration of CO 2 : former hydrocarbon reserves, either liquid or gas, deep saline aquifers and unexploited coal seams. IFP is working on all of these options, its objective being to develop industrial software that can be used to model and monitor storage facilities and optimize the injection and storage process. IFP is carrying out experimental studies in the laboratory designed to gain a better understanding of interactions between CO2, the fluids encountered and rocks. These studies

provide information for the modeling tools used to evaluate and simulate the fate of CO2 under the ground, over several hundreds, or even thousands, of years. Hence, buoyed by its significant experience in the field of basin and reservoir modeling, IFP is developing the Coores simulator, which models the hydrodynamic behavior of CO2 in porous media, taking into account all the geochemical and geomechanical interactions. This simulator is used on an industrial scale to assess sites, in addition to a variety of analyses: seismic and geochemical studies, core sampling, well logging, etc. The underground model constructed in this way makes it possible to estimate injectivity, the migration of CO2 underground and the impact of geochemical and geomechanical changes on the integrity of overburdens and wells in order to assess the safety of storage in the mid and long terms. On the strength of this experience, IFP is working with Petrobras to study CO2 storage conditions in the Reconcavo basin in Brazil, as part of the Bahia project. Follow-up of CO2 injection and site monitoring are crucial to ensure the safety of storage. In this field, IFP is developing monitoring techniques based on seismic acquisition, with, in particular, the Seismovie TM permanent system developed with CGGVeritas and Gaz de France. In addition, IFP is continuing to work on the development of μsics TM software, designed to locate passive microseismic events.

Geological storage must demonstrate that it does not cause any damage to the local environment. IFP’s goal is to develop industrial software for modeling potential CO2 migration routes underground, taking into account the structure of the storage site and geochemical interactions between the CO2 and the mineral structures encountered

...

Daniela Bauer Reservoir Engineering Division

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The transport and storage of CO2 is an emerging industrial sector, which is why IFP, GĂŠostock and BRGM created the Geogreen company in 2007, which offers the industry players concerned a very broad range of services concerning the entire chain, from transport to geological storage of CO2, from upstream expertise to engineering and project development. In the longer term, it will offer services for the operation, monitoring and maintenance of injection sites, along with follow-up services related to the closure of storage sites.

CO2 capture using solvents: new column packings, with a large contact surface and low pressure losses, are being developed to improve the efficiency of processes and reduce the size and cost of installations.

Geological storage of CO2: creation of Geogreen In 2007, IFP, GÊostock and BRGM created a company with an international scope, Geogreen, specializing in engineering services dedicated to the transport and geological storage of CO 2 . In the longer term, Geogreen will offer services for the operation, monitoring and maintenance of injection sites, along with follow-up services related to the closure of storage sites. For more information : www.geogreen.fr

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5.75%

the European target for the share of biofuels in the fuel pool in 2010.

First-generation biofuels Today, many countries are introducing regulations or incentives to promote the use of biofuels. The target set by European countries is for biofuels to be incorporated into the overall fuel pool to the tune of 5.75% in 2010 and 10% in 2020, at the same time ensuring compliance with practices compatible with sustainable development. IFP has been working in this field since 1980, with, in particular, the development of the Esterfip TM process that produces biodiesel from rapeseed oil and methanol by homogeneous catalysis, in the early 1990s. Since then, IFP has developed a new biodiesel production process based on heterogeneous catalysis: Esterfip-H TM . This new generation leads to improved performance, with no waste and a good-quality byproduct (glycerin). In 2006, the Esterfip-H TM process was implemented by Sofiproteol in Sète, representing an industrial first worldwide. Current R&D work is concerned with reducing costs, increasing feed flexibility (firstly oils and, secondly, the substitution of methanol with ethanol from biomass) and developing new processes for upgrading glycerol (a byproduct of the reaction). In addition, work has been undertaken to develop a process for the direct hydrotreatment of vegetable oils. The objective is to use IFP’s expertise in the field of the hydrotreatment of oil cuts together with its experience in the field of vegetable oil treatment to quickly bring to market a process that optimizes investments.

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Diversifying fuel sources To alleviate the transport sector’s reliance on oil, IFP is working on transforming biomass, gas and coal to produce liquid fuels and hydrogen. These various technologies are being developed with a view to reducing greenhouse gas emissions and, in particular, CO2. IFP has built up a significant pool of expertise in each of these areas, in terms of both research and technological developments. Many scientific and technological obstacles need to be overcome before these options can be developed. This calls for a multidisciplinary approach drawing on expertise in catalysis and separation, process engineering, physics, analysis and physico-chemistry. In this field, IFP is supported by a number of European and international cooperative partnerships (in particular BFH Hamburg, University of Bochum, Inra, CEA, Cirad, Esigec, Ircelyon, Laboratoire de catalyse de Lille, LSGC, University of Strasbourg, VTT, etc.).

Second-generation biofuels IFP is involved in the development of new energy options via the conversion of lignocellulosic biomass produced by forestry and agriculture (wood, straw, dedicated crops, plant waste, etc.) in order to open up access to a less limited resource, which does not compete with food use. The medium-term objective is to succeed in producing synfuels suitable for use in conventional engines, either directly or as a blend. To achieve this, IFP is studying all the steps involved, from the resource to the end product. The first step concerns the transformations that facilitate the transport of biomass, including rapid pyrolysis and torrefaction. In this field, the particular focus has been on the specific characterization of the products resulting from such transformation. In 2007, concrete case studies for supply in French regions were conducted, aimed at estimating the resources genuinely available for use, along with their access cost to supply a production

site of a representative size. Work on the development of a methodological tool for the multicriteria assessment of different bioenergy options based on life cycle assessment (LCA) was finalized. IFP is involved in the development of the BTL (Biomass to Liquid) chain, a process including pre-treatment, gasification and gas purification stages, followed by Fischer-Tropsch synthesis, to ultimately produce naphtha, gasoil and kerosene. Studies are focusing on: - the development of pre-treatment, gasification and post-treatment technologies dedicated to the autothermal route, and optimization of their technical, economic and environmental performance, - improvement of the mass recovery of these processes via the supply of exogenous energy (thermal energy or matter energy via injection of H 2 ).

in order to optimize operating costs as much as possible. In 2007, case studies concerning the availability of the resource for a BTL unit were performed and a demonstration pilot unit was defined, in close cooperation with R&D and industry players. IFP is also involved in the Futurol project aimed at the development and economic validation of an industrial process for the production of second-generation bioethanol from cereal byproducts (straw), forestry byproducts and dedicated biomass (miscanthus grass, giant reed, etc.). Alongside IFP, this project involves R&D (Inra, ARD, Lesaffre) and industrial and financial players; in 2007 it was submitted for funding to the AII (the French Industrial Innovation Agency). Still in the same field, IFP is coordinating the European Nile project (New Improvements for Lignocellulosic Ethanol).

The objective is optimum integration within existing process industries, both in terms of the feeds treated and the synergies envisaged,

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Diversifying fuel sources

The use of natural gas and coal

«

IFP is also involved in the Futurol project aimed at the development and economic validation of an industrial process for the production of secondgeneration bioethanol from cereal byproducts, forestry byproducts and dedicated biomass

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Jean-Louis Bonneau Catalysis and Separation Division

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In 2007, IFP pursued work on its FischerTropsch synthesis process, in collaboration with the Italian group Eni. This process is employed to produce synfuels containing no sulfur or aromatics from natural gas (technology known as Gas to Liquid or GTL). It should be pointed out that this process can also be applied to gases derived from other fossil sources such as coal, or biomass. IFP also possesses Fischer-Tropsch wax hydrocracking technology for the production of synfuels.

Hydrogen production In the long term, the use of hydrogen could represent an alternative to fossil fuels in the transport sector. There are, however, a number of significant scientific, technological and economic hurdles to be overcome before this option can be developed. IFP is contributing to the emergence of this new field, particularly through the production of hydrogen from fossil fuels, with CO2 capture and storage. The main focus of IFP’s research work is on developing centralized hydrogen production processes. As part of the European Cachet project, IFP is developing a large-capacity

natural gas steam reforming process, which is compact and very energy efficient, as well as advanced purification processes combined with CO 2 recovery. The three-year project involves 29 partners from 18 different countries and has a total budget of �13.5 million. IFP is also working on the development of decentralized hydrogen production processes using bioethanol, primarily to power fuel cells. Phase 2 of the Biopac project was launched in 2006. The project’s overall objective is to demonstrate the technical and economic feasibility of using bioethanol as an alternative fuel for PEM-type fuel cells for stationary applications, via its conversion to hydrogen. To this end, there are plans to develop the process chain that enables electricity and heat to be produced using bioethanol, optimizing not only costs but also electricity and thermal yields. Finally, work to develop a liquid feed autothermal reforming technology continued in partnership with HyRadix. A pilot generator has been defined and is currently under construction. The process, which is highly integrated from an energy point of view, is aimed at the industrial hydrogen market and can also supply fuel cells for use in decentralized electricity production.


A pilot unit to study rapid pyrolysis or torrefaction of forestry and agricultural waste, thereby completing the first step in the conversion of lignocellulosic biomass into synthetic fuels that can be used in conventional engines.

Panorama : What does the future hold for biofuels? As it does every year, IFP held its Panorama Conference, aimed at political, industrial, economic and financial players, along with a broader audience of opinion leaders. Held in Paris, then Lyon, on February 1 and 8, the 2007 conference, on the theme of “What does the future hold for biofuels?” was attended by almost 700 people in total, including some fifty journalists. In both Paris and Lyon, Olivier Appert opened the conference with a presentation of international energy news in 2007. The conference continued with speeches from industry players, leading to a number of debates. For each Panorama conference, IFP publishes and updates a collection of technical and economic data sheets covering the oil and gas markets, their developments and prospects as well as data sheets relating directly to the year’s specific theme. These data sheets, together with those for previous Panorama conferences, are available free of charge on IFP’s website: www.ifp.com.

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7%

the vegetable oil methyl esters level defined in future specifications for B7 gasoil.

The research work carried out by IFP in this field is aimed at controlling the fuel consumption of vehicles and thereby cutting CO2 emissions, in order to protect the environment and limit their effects on the climate. In particular, this approach involves improving engine/fuel pairs, developing innovative technologies with low fuel consumptions and evaluating alternative fuels. R&D work focuses particularly on fields related to vehicle hybridization, the storage of electrical energy and the use of biofuels. The bulk of this research is conducted in collaboration with industrial partners. IFP is also a major player in various French and European R&D programs.

Modeling The complexity of vehicle powertrains in terms of architecture and control requires the implementation of modeling at each design stage: study, production, optimization and validation. Modeling is used both to define the characteristics of the combustion chamber, and to optimize the various parts making up the powertrain. IFP devotes a significant proportion of its R&D work to the development of simulation tools, which it makes intensive use of in order to develop its own innovations. The development of high-performance modeling tools first of all requires in-depth knowledge of all the phenomena or mechanisms to be simulated. This basic knowledge is partially acquired through analytical studies conducted on transparent cells or engines using optical investigation techniques. Hence, in partnership with PSA Peugeot CitroĂŤn and Renault, a new technique for measuring wall surface temperature by phosphorescence has been developed, in order to determine the influence of piston temperature on the behavior of diesel combustion with low NOx emissions.

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Developing clean, fuel-efficient vehicles The transport sector plays a crucial role in any modern economy. A high level of mobility of both goods and people is not only a key feature of developed countries, but also a prerequisite for their development. This development is dependent on overcoming a number of major challenges, such as securing energy supplies, controlling pollutant emissions or noise pollution and cutting greenhouse gas emissions. Road transport continues to lie at the heart of national energy policy and must now be considered in the context of sustainable development.

Ultimately, this understanding is capitalized upon in modeling tools. IFP’s IFP-C3D threedimensional combustion modeling code, distributed by LMS, is a perfect illustration of this approach and is a concrete result of IFP’s sustained commitment to this field over several decades. The most recent improvements in 3D modeling concern the development and implementation of a calculation method using chemistry tabulation.

right through to the whole vehicle system. Qualitative improvements have been made to the IFP-Engine (engine simulation) library, with the implementation of a BARBA-type combustion model. These tools are marketed by our partner, LMS, in the Imagine.Lab AMESim software platform.

IFP continues to play a dominant role in the development of large-scale 3D simulation (LES or Large Eddy Simulation), which intrinsically possesses a better predictive quality and enables simulation of complex transient phenomena. It has been applied for the first time to simulate the behavior of a complete multicylinder engine using AVBP software as part of the ANR-CaMPas project being conducted in collaboration with Cerfacs, the EM2C laboratory and Cines.

Cutting the fuel consumption of vehicles is a priority theme at IFP in the field of transport. Thermal/electric hybridization is an effective solution to this problem thanks to enhanced operation of the thermal engine and optimization of onboard energy management. Studies concern the adaptation of thermal engine architecture, the development of innovative transmission systems, the management of electric energy storage and control of the entire powertrain.

Finally, IFP continues to work intensively on developing system simulation tools that can be used to model behavior, from components

This hybrid approach is adapted to the various types of powertrain in order to assess its potential. For gasoline applications, thanks to

Hybrid vehicles

its expertise in the field of downsizing, IFP had developed a very high-performance prototype 1.8 liter engine operating according to the Miller cycle. The performance achieved in terms of specific consumption (220 g/kWh) is very close to that of a conventional diesel engine. Combining the advantages of hybridization and the use of a low-carbon fuel, such as natural gas, IFP has developed an urban demonstration vehicle as part of the ANR-Predit Vehgan project being carried out jointly with Gaz de France, Valeo and Inrets. A simulation approach has also been used to assess the potential of gasoline powertrains for urban light duty vehicles in terms of fuel consumption and pollutant emissions. This work is being carried out in the context of the ANR-Predit Vitel project in collaboration with Volvo Powertrain, Total and Insa. IFP is also focusing on the area of electric energy storage. The approach adopted aims to develop simulation tools and diagnostic and control tools for batteries and supercapacitors.

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Developing clean, fuel-efficient vehicles

«

Cutting fuel consumption and CO 2 emissions is a priority theme of IFP’s research in the field of transport. Thermal/electric hybridization is an effective solution to this problem thanks to enhanced operation of the thermal engine and optimization of onboard energy management

...

Youssef Touzani Technology, Computer Science and Applied Mathematics Division

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Work is being carried out in partnership with the CEA, CNRS and the M2 company, for example, as part of the ANR-Stock_E Alidissi project dedicated to improvement of lithiumion batteries and the development of in situ diagnostic techniques.

actuators (variable valvetrain, turbocompressor, etc.). This approach is validated on the Vel Satis demonstration vehicle, equipped with the IFP downsizing concept. The complete control system is based on trajectory planning techniques that simplify the experimental calibration phase.

Engine control

Lastly, IFP has made yet more progress in the field of virtual model use for the design of control laws and the incorporation of constraints related to reliability, operational safety and diagnostics. This approach is based on the use of engine simulators developed in the Imagine.Lab AMESim software environment using IFP libraries.

All the current conventional or hybrid powertrain developments require a significant knowledge of their electronic control system. For new generations of diesel engines with very high EGR rates (HCCI combustion, Homogeneous Charge Compression Ignition), IFP has developed and implemented a fullpath engine control system with its onboard electronics. This system includes innovative control algorithms concerning piloting of the air loop, exhaust gas recirculation (EGR) and fuel loop corrections. The control systems produced are model-based, i.e. they are based on formalization of engine physics equations. In the field of gasoline engines, developments concern a generic structure designed to control air loops, integrating numerous piloting

Fuels and lubricants Research activities are focused on finding the best possible engine/fuel fit. IFP’s crossover expertise in engine technologies and fuel development means that it is ideally positioned to meet this objective, which is relevant for petroleum-based fuels as well as alternative fuels. Working with Total and the car manufacturers PSA Peugeot Citroën and Renault, the impact


In-depth knowledge of all the phenomena or mechanisms is partially acquired through analytical studies conducted on transparent cells or engines using optical investigation techniques.

of fuel on combustion in a very highly-charged engine (IMEP 30 bars) is being examined. The influence of parameters such as octane number, latent heat of vaporization, volatility and composition, is being evaluated in terms of performance and fuel consumption. The role of fuel in the development of the abnormal combustion phenomenon known as “rumble” is also being investigated. With respect to diesel, the impact of the fuel formulation is being analyzed, focusing specifically on cold starts (-20°C) in low compression ratio diesel engines (low NOx emission combustion). The evaluation of alternative fuels with low greenhouse gas emissions derived from various production processes represents a priority theme for IFP. Research in this field is focused on ensuring the innocuousness of biofuels (biodiesel, ethanol, etc.) on the behavior of engines and the various component parts. An evaluation of FFV (Flexible Fuel Vehicle) fleets, i.e. vehicles running on E85 fuel or superethanol, is currently underway.

As a result of its expertise, IFP is involved in the validation of biofuels and in drawing up their technical specifications. Hence, IFP has been appointed by the public authorities to lead a working group made up of Ademe, car manufacturers, oil companies and biodiesel producers to define the future specifications for B7 gasoil, which contains 7% vegetable oil methyl esters. IFP is examining the potential use of ethanol as a diesel fuel base. This approach, which has the advantage of increasing biofuel volumes destined for diesel vehicles, has been successfully applied to a Citroën C4 demonstration vehicle. In parallel, IFP has launched a new E4D (Ethanol For Diesel) consortium focusing on this theme, in collaboration with O2Diesel, Petrobras, Renault, Total and Volvo Powertrain. Finally, the issue of using biofuels is also being examined in the field of air transport. In particular, IFP is working with Airbus, CNRS, Onera and Safran to implement the

Fui Calin project, aimed at studying potential alternative processes for the production of jet fuel.

Engine Technologies Diesel engines have an excellent positioning in terms of consumption but are poorly placed in terms of emissions with respect to pollution regulations. There is therefore a strong focus on controlling specific pollutants (NOx and particles). The first approach consists in reducing these pollutants at source, in other words during combustion, particularly by optimizing HCCI combustion mode. Numerous studies being conducted as part of various partnerships (European NICE program, etc.) underline the strong potential of variable distribution and multi-injection to obtain the best “consumption/NOx/particles/HC/CO/noise” compromises for this type of combustion.

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Developing clean, fuel-efficient vehicles

In partnership with Valeo and Faurecia, as part of the ANR-Predit VDH project, IFP is also developing, on a Renault Vel Satis base, a demonstration vehicle equipped with its NADI TM HCCI combustion process and an engine control developed entirely in-house.

«

The evaluation of alternative fuels with low greenhouse gas emissions, derived using various production processes, represents a priority theme for IFP. Research in this field is focused on ensuring the innocuousness of biofuels on the behavior of engines and the various component parts

...

Laëtitia Chaine-Bonnet Energy Applications Techniques Division

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A combustion mode with low NOx emissions is also being investigated for heavy-duty applications. Hence, in the context of the ANRPredit TOM project, being implemented in collaboration with Volvo Powertrain, complete optimization of the combustion system leads to a NOx emission level of well below 0.5 g/kWh, over a very broad operating range, simultaneously maintaining good control of full-load fuel consumption. A second approach to control diesel pollutants consists in treating them in the exhaust system. In this context, IFP is continuing its partnership with CTI for the industrial validation of an innovative particle filter. IFP is also involved in two new European programs, Pagode and Ipsy, focusing on the problems of HC, CO and particulate emissions generated by HCCI combustion. Finally, despite their excellent position in terms of consumption, there is still room for improvement in this area for diesel engines, due, in particular, to technological advances. IFP is therefore continuing its work in the field of

significant supercharging, which leads to substantial improvements in the pollution/ consumption compromise. The principal problem associated with gasoline engines remains cutting their fuel consumption. IFP’s research therefore focuses on the development of more efficient combustion processes, such as downsizing. In collaboration with Renault, IFP has designed and fully validated a new small-cylinder, turbocharged combustion chamber, equipped with gasoline direct injection technology. This development has enabled the implementation of innovative approaches (admission concept, injection system incorporation, etc.). In addition, the use of Catia V5 and its parametersetting functionalities has led to greater flexibility in the design phase. Working with PSA Peugeot Citroën and Renault, IFP is also continuing to carry out research in the field of gasoline combustion, in the event of very significant downsizing. This work focuses on the “rumble” phenomenon, which readily occurs with this type of very high-load operating conditions. In order to support these various technological developments, IFP is adding to its expertise and adapting its testing resources. In the field of calibration, which represents a crucial phase


Morphée 2 : a new test bench supervision system Morphée 2 software is an innovative control and supervision tool dedicated to the automation of all types of test benches and the implementation of engine calibration tests. It makes it possible to integrate real-time simulation models into testing processes, in order, for example, to simulate the behavior of virtual elements, such as the transmission system or the complete vehicle architecture. The RTX real-time platform guarantees full compatibility with future updates made to operating systems and hardware. This tool, which was first marketed during the first half of 2007 by D2T, was developed in close collaboration with IFP, especially for its real-time platform. It is likely to replace the Morphée 1 product with which D2T is already present on more than 2,100 applications around the world in numerous different sectors (car, heavy-duty, industrial engines, aeronautics, rail).

in the development of a vehicle, new tools and methodologies are being developed and validated for stabilized engine operation. These tools are already applied with various industrial partners. IFP now is equipped with a high-dynamic engine test bench for the simulation of behaviors observed on vehicles. This test bench, which is controlled with Morphée 2, a supervision software developed in partnership with D2T, can be used for real-time simulation models, reproducing the vehicle and driver behaviors. The Morphée 2 platform is also used on engine test benches to guarantee automation and thereby improve the productivity of IFP’s testing equipment.

New Morphée 2 data acquisition and control software, to evaluate engine behavior in realistic conditions, characterize driveability and test and calibrate new control algorithms.

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150

the number of licences for Prime-G+ TM, the world’s leading gasoline desulphurization process, sold worldwide to date.

Conversion IFP has continued its work on the development of hydroconversion technologies – processes and catalysts – for heavy crudes, residues and distillates. These technologies can be applied in the refining of conventional crudes, the pre-refining of conventional crudes to prepare semi-synthetic crudes suitable for specific markets, and the refining of heavy and asphaltic crudes on the oil field, to enable their transportation and subsequent refining. The objective is to reduce the costs of the technologies as well as their impact on the environment, while at the same time generating distillates meeting the quantitative and qualitative requirements demanded. Hence, in the field of hydrocracking, the Hygo project, launched in 2005, focuses on the development of catalysts and processes to maximize the production of medium distillates. The project also aims to define operat-

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Co nverti ng as much raw material as possible into energy for transport The challenge now facing the refining and petrochemicals industry – and one of IFP’s research areas – is how to extract the maximum possible quantity of fuels and petrochemical bases from each barrel of oil produced, while at the same time reducing their impact on the environment. The waste generated during production needs to be reduced or treated and ever-cleaner and more cost-effective products need to be made available to consumers. At the same time, the trend towards heavier crude oil supplies and, ultimately, the upgrading of unconventional oils entails the development of conversion technologies, and particularly deep conversion methods. Lastly, one of the greatest challenges facing the industry in the future will be to meet these various requirements whilst cutting CO2 emissions in refineries.

ing conditions and develop catalysts that will enable the development of enhanced moderate hydrocracking technology for pre-treating catalytic cracking feeds, with increased production of diesel oil with a sulfur content below 10 ppm and a marked reduction in refineries’ sulfur emissions. In 2007, in the field of high-pressure hydrocracking, the first industrial references were obtained on a new catalyst resulting from the Hygo project. This catalyst converts more vacuum distillates into very high-quality diesel oil, with a sulfur content of less than 10 ppm. Furthermore, in the field of hydrotreatment of atmospheric residues, the development of a system with several more active and more stable catalysts was completed in 2007. This can be used to produce heavy fuels with a very low sulfur content (less than 0.3%) or to prepare feeds for catalytic cracking.

Fuel production Fuel demand is rising sharply, with a marked increase in the gasoil to gasoline ratio worldwide, a ratio that has already reached very high levels in Europe. Ever more stringent specifications are another distinctive feature of the fuel market. For gasoline, for example, after the elimination of lead, the fundamental global trend is towards a reduction in sulfur and aromatic contents, which will have profound effects on the entire refining industry. A reduction in olefin and benzene contents will doubtless be the next stage in this trend. In this context, complying with octane numbers poses a major challenge and one which IFP is determined to meet in the coming years.

ing gasoline with a high octane number. For the hydrotreatment of catalytic cracking gasolines, a new line of catalysts is currently being studied for the world-leading Prime-G+TM desulfurization process. In the field of gasoil and kerosene production, IFP is particularly focused in developing catalysts with enhanced activity and stability. In 2007, a new diesel hydrotreatment catalyst with an enhanced activity was developed for the Prime-D TM diesel desulfurization process.

Where gasoline production is concerned, IFP is working on the development of catalysts and catalytic reforming, paraffin isomerization and hydrotreatment processes. 2007 saw the development of a new line of catalysts for reform-

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Converting as much raw material as possible into energy for transport

High-performance catalysts The production of materials designed for use in reaction and separation processes is crucial for the development of high-performance catalysts. These new methods, coupled with new in situ analysis techniques (X-ray diffraction, IR spectroscopy, MRI, 3D PET, etc.), enable better monitoring of surface properties and metal/ support interactions. This in turn makes it possible to improve existing solids and discover radically new catalysts and adsorbents. Molecular simulation and modeling and highspeed testing tools can be used to design the mechanisms involved and identify new research strategies. Numerous collaborative projects are under way in this field, particularly with the CRMCN (Condensed Matter and Nanosciences Research Center) in Marseille, the ENSC (School of Chemistry) in Rennes, the Institut de physique et chimie des matĂŠriaux (Institute of Material Physics and Chemistry) in Strasbourg, the Ircelyon (Catalysis and Environment Research Institute) in Lyon, the Laiman (Instruments and Materials Laboratory) in Annecy, the LCC (Coordination Chemistry Laboratory) in Toulouse and the University of Lille.

The production of petrochemical intermediates IFP’s work in this field is aimed at improving the yields of petrochemical processes and the purity of the intermediates obtained. Its research focuses mainly on selective hydrogenation and the production and purification of olefins and aromatics, specifically BTX and linear alkylbenzenes (LAB). Where aromatics are concerned, IFP is concentrating on the development of new adsorbents able to maximize the purity of products of xylene separation. In 2007, a new nickel-based catalyst for selective hydrogenation of steam cracker gasolines was developed, while its palladium-based counterpart, developed in 2006, was applied commercially for the first time. Likewise, a new zeolithic catalyst was developed in the field of aromatic C8 isomerization.

ÂŤ

In order to cut pollution caused by air traffic, IFP is developing technologies and catalysts that will ultimately lead to a lowering of the sulfur-content specifications of kerosenes

...

Alice FONTAINE Process Experiments Division

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Hygo project Launched in 2005 following a strategic study examining the conversion of distillates, the Hygo project aims to generate a complete range of hydrocracking catalysts and the process developments needed to use these. Labeled a blockbuster by general management since its inception, it is given priority access to resources and is being particularly closely monitored. Axens is responsible for activities related to the industrialization of the catalysts and processes. In order to address the growing demand for diesel fuel with a very low sulfur content and a high cetane number, the conversion of heavy petroleum distillates into medium distillates is becoming essential. Hydrocracking, the core process involved in this conversion, is a cornerstone of the refining system. In 2007, when the project fully met all its objectives, the first industrial applications also saw the light of day, with, in particular, a new catalyst with a high diesel selectivity and a zeolithic catalyst with a high kerosene selectivity.

Pilot hydrocracking unit for the development of processes and catalysts as part of the Hygo project focusing on the conversion of heavy distillates into gasoil and kerosene.

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1%

increase in the recovery rate for all the planet’s oilfields, corresponding to two years of world consumption at current rates.

Increasing exploration success rates Our current knowledge of sedimentary basins is still far too inadequate to guarantee high exploration success rates. Consequently, IFP is continuing to develop compositional geochemical models and conceptual models in the field of structural and sedimentary geology for the qualitative and quantitative characterization of hydrocarbons and the evolution of geological formations, the latter incorporating quantification of uncertainties. This approach will enable more accurate estimation of the residual potential of mature basins and frontier zones, such as the Arctic, ultra-deep offshore fields (under more than 3,000 meters of water) or foothill zones, which are highly complex in terms of both the structural setting and the historical formation of hydrocarbons. Scientific developments in this context make it possible to understand and model the evolution of petroleum systems in space and time (TemisSuite software), along with the evolution of sedimentary systems (Dionisos software). They also provide a better understanding of complex zones through the construction of structural models and restoration (Kine3D software). In 2007, in the area of basin modeling, IFP added to its TemisSuite range and now offers an integral line of products, marketed with 1D, 2D and 3D modules. IFP also added to the Kine3D software for the construction of complex geometries (mountain chains, toes of deep margins, etc.). This module is marketed by Paradigm.

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Pushing back the boundaries in oil and gas exploration and production During the transitional phase ahead of us, satisfying energy requirements will require a sustained effort to bring new reserves into production, the first conventional petroleum substitute being petroleum with a high technological content. In the coming decades, explorers and producers will therefore have to be even more innovative. Command of advanced technologies will lead to new discoveries, improvement of recovery rates and the development of unconventional resources, such as ultra-deep offshore, very deeply buried reservoirs and very sour gases.

Finally, IFP produced the first industrial version of its Dionisos stratigraphic modeling software, the fruit of some ten years of research carried out notably in the context of a JIP (Joint Industry-funded Project).

Improving field recovery Two figures sum up the challenge being faced: the worldwide average recovery rate is 35% and a 1% increase for all the planet’s conventional oilfields would be equivalent to two years world consumption at current rates. To provide oil companies with the technologies they need to increase recovery rates, IFP is focusing on four major themes: the static characterization of reservoirs and fluids, dynamic simulation, concentrating particularly on “automatic” updating of the geological model by inversion of production and repetitive seismic data, well productivity and assisted hydrocarbon recovery. The knowledge acquired is transferred to software developed on the OpenFlow platform open to third party software. This platform,

which is the basis for all IFP’s geoscience software products, incorporates data management and maintenance, cross-over services, such as visualization tools, workflow management and links with external softwares. It makes it possible to present a range of homogeneous, communicative software products, and facilitates the construction of workflows specific to areas of expertise. It also provides an environment for research and for the development of prototypes.

In the area of reservoir simulation, IFP is developing methodologies to improve reservoir description by optimizing the use of available data (conceptual geological model, well logging, seismics, production data). In 2007, IFP continued to work on the development of its Condor Flow software enabling production data history matching by adjustment of the reservoir model and the geological and petrophysical model. The performance of the Puma Flow reservoir simulator was significantly enhanced.

In the field of reservoir characterization, IFP is developing new technologies, such as permeability measurements on drill cuttings (Darcylog TM ) and fluid analysis in reservoir conditions, at high pressures and high temperatures. IFP is also developing techniques for the extraction of petrophysical parameters from seismic data and the characterization of fractured networks to improve production forecasting in fractured reservoirs, located mainly in the Middle East. In 2007, for example, IFP continued development on its Fraca Flow software used to characterize and model fractured reservoirs.

In 2007, IFP completed the monitoring study on the Girassol field, off the coast of Angola – one of the biggest deep-sea oil fields in the world – in collaboration with Total. After inversion of the seismic data, a detailed geological model of the field was constructed. A production and 4D seismic data historymatching phase was then conducted implementing the optimization loop developed by IFP in the context of basic research studies then in the context of the Condor and Monitor JIPs. This includes geostatic modeling, scale change, flow simulation and petro-acoustic property simulation.

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Pushing back the boundaries in oil and gas exploration and production

Finally, IFP is continuing to develop Cougar software, marketed by Schlumberger Information Solutions, for the management of uncertainties related to production forecasts. The associated research work is being carried out as part of a JIP.

«

Bringing unconventional resources into production – very deep offshore, Arctic zones, very sour gas – requires the development of innovative technologies and specific equipment, for which we need to overcome numerous technological obstacles

...

Sylvie Perrin Applied Chemistr y and Physical Chemistr y Division

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In the field of well productivity, IFP is working primarily on the optimization of water injection models, notably in the context of the Prowide JIP, on water shut-off using microgels, particularly in the Stargel JIP, and on scale inhibitors. Research carried out in the field of water shutoff led to a spin-off in 2007, with the creation of the Poweltec company. The development of high-performance “mineral scale inhibitor” products has been the subject of a collaboration agreement with Rhodia. In the area of assisted recovery, IFP continued the research under way concerning the modeling of heavy oil recovery by steam and solvent injection and on modeling of the cold production of these oils. In addition, work on the development of polymers for assisted recovery has been the subject of a collaboration agreement with Rhodia.

Developing fields in extreme environments Bringing unconventional resources into production – very deep offshore, Arctic zones, very sour gas, etc. – requires the development of innovative technologies and specific equipment, for which we need to overcome numerous technological obstacles. In the context of deep and very deep offshore production, IFP has continued its work, in close cooperation with Technip, on flexible structures, reeled rigid pipes and umbilicals for increasing water depths. Making seabed-surface links up to 2 times lighter is essential for the development of reservoirs located in more than 2,500 metres of water. To achieve this, IFP is developing hybrid pipe technology, combining the use of conventional metal pipes, but with reduced thickness, and stressing with composite fiber. In offshore, reducing the immobilization time of drilling installations significantly cuts costs. To this end, IFP has developed the ClipRiser TM for the quick connection of riser components, successfully marketed by Aker Kvaerner Subsea with the technical support of IFP. Production in zones located far offshore require the development of submarine


Gas-oil-water separation : new GOwSP platform In April 2007, the GOwSP (Gas-Oil-water Separation Platform) was successfully brought onstream at the IFP-Lyon site. This installation will lead to a better understanding of the phenomena involved in triphasic separation (gas-crude oil-water) with a view to defining separation equipment sizing rules, particularly for ultra-deep and difficult oil applications. This work is part of a program being conducted in partnership with Total over a period of several years.

effluent separation units (gas, oil, water). To develop better control of separation, IFP has undertaken theoretical and experimental research as part of a joint project with Total. The fluid separation study platform located at the Solaize site, opened in 2007, is a key component in understanding the mechanisms at play. It is also used for testing separation equipment in representative conditions for third parties. Production in zones located far offshore requires the transportation of effluents over large distances (several hundreds of kilometers). Under these conditions, and irrespective of the quality of pipeline insulation, it becomes necessary to control the formation and transportation of hydrates. In this field, IFP is conducting research into the transportation of hydrates in a predominantly gaseous fluid and, in the context of the Hysiflo JIP, into the transportation of hydrates in a predominantly oily fluid. All IFP’s expertise acquired in the field of flow assurance is reflected in an integrator software product, for which IFP launched the implementation of a platform open to third parties in

2007 under the Cape-Open standard, enabling modeling of multiphase flows with the same thermodynamics, from reservoir to surface processing. In the field of gas treatment, after having successfully demonstrated the performance of the Sprex ® process developed by IFP, Total and Prosernat, at the pilot unit built at Total’s Lacq site, IFP finalised the process book in 2007. This process makes it possible to extract up to 90% of the H 2 S contained in very sour natural gases (more than 20% H 2 S) along with a proportion of any CO 2 potentially present. By enabling the production of acidic reservoirs, the process helps to increase exploitable natural gas reserves, while at the same time providing a cost-effective and environmentally-friendly solution. IFP is also continuing to optimize the gas treatment amine processes developed jointly with Total.

Platform to study separation, a key component of the theoretical and experimental work carried out by IFP in collaboration with Total, leading to an understanding of the mechanisms involved in the separation of production effluents.

ISO 9001 : 2000 Quality Certification In 2007, the Exploration-Production Technology Business Unit was awarded ISO 9001: 2000 quality certification. This AFAQ certification concerns renewal of certification of the industrial software development activity and extension of certification to cover all the business unit’s activities.

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88%

of engineering course students were sponsored by industry at the start of the 2007-2008 academic year.

A school for the professions of today and tomorrow An integral part of IFP, the IFP School is open to higher-education graduates and provides programs leading to nationally-recognized engineering degrees or Master degrees. Its programs to train highly qualified specialists are designed to meet the same objectives as those of IFP: to enable society, through industry, to tackle the complex problems facing the energy and transport sectors. The human resources requirements of industry are significant and are set to rise in the coming decade, due to new needs generated by the energy transition as well as the population pyramid of companies. Immediately operational in industry, the School’s graduates are highly sought after on the job market and 99% of them secure a position as soon as they graduate. This explains the large number of high-quality applications received by the School, which for the 2007-2008 academic year, selected 360 students from more than 2,600 applications for its specialized engineering programs alone. Once again, the School has experienced a record year, both in terms of the number of students and the number of industrial sponsorships.

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The IFP School Training the specialists of tomorrow and equipping them to meet the challenges associated with the energy transition is another of IFP’s commitments, through the IFP School. Open to higher-education graduates, it provides a comprehensive range of French- and English-language degree programs in all fields related to the oil, gas and engine industries. Enjoying close links with the worlds of research and industry, the School has acquired an international reputation, reflected in the fact that almost 50% of its students are foreign nationals from some fifty different countries.

A growing international commitment

The quality of recruitment

Almost 50% of the School’s student population is made up of foreign nationals, from some fifty different countries. This policy is designed to meet the growing needs of stateowned companies in producing countries for qualified personnel and is also a response to the determination of international companies operating in oil and gas producing countries to significantly increase the percentage of local employees.

Through its targeted promotional initiatives (forums, conferences, etc.) in France, Europe and throughout the world, the School demonstrates to potential applicants the attractiveness of the energy, transport and environment sectors, and in so doing, helps to counter the disaffection with scientific careers observed in industrialized countries. To ensure the continued quality of recruitment, the School has established partnerships with numerous graduate schools in France and prestigious universities around the world.

Today, more than 12,000 IFP School graduates, including 3,000 foreign nationals in 100 countries across all five continents, are working in the oil, gas and automobile industries. In addition to forming an important link for French and European industry internationally, this network, which shapes the scientific and technical elites of numerous countries (Middle East, Russia, Venezuela, etc.), also helps reinforce France’s and Europe’s influence abroad.

Academic partnerships may lead to joint training programs. In certain cases, double degrees are awarded, in the United States and Russia in particular.

Key figures • Over 600 graduates per year • More than 80% of students sponsored by industry • 50% international students at Rueil and 8 offsite degree programs abroad • 40 full-time professors and 400 from industry

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The IFP School

Significant industrial integration The School owes its success to an original teaching model based on a close relationship with industry, delivering both knowledge and know-how. In recent years, the School has added to the technical core of its training programs cross-disciplinary courses (project management, communication, etc.), designed to equip tomorrow’s engineers with the tools to assume their responsibilities to society. There are many forms of partnerships with industry today. The number of apprenticeships remained high, particularly in “downstream” fields; 45% of students recruited in September 2007 opted for this formula. At the same time, the number of students sponsored by companies increased, reflecting the industry’s interest in developing students’ loyalty whilst they are studying. In total, 88% of students on engineering programs were receiving support from industry at the start of the 2007 academic year.

Adapting the training offer : offsite degree programs The IFP School’s satellite degree programs, in other words training programs organized in foreign countries, in collaboration with local academic and industrial partners, continued to gather pace in 2007. Alongside the existing programs in Algeria, Angola, Malaysia, the Middle East and Nigeria, a new program was launched in May 2007 in Venezuela in the field of refining, and another still in October 2007 in Russia in the field of petrochemicals. These training programs, organized in partnership with IFP Training, are endorsed by a degree awarded by the School. Offsite degree programs are a means of supporting these countries by training their future managers and are part of a sustainable development approach.

«

IFP School’s programs to train highly-qualified specialists are designed with a view to achieving the same objectives as IFP: to meet the significant and growing human resources requirements of industry. Immediately operational, the School’s graduates are highly sought after on the job market and 99% of them secure a position as soon as they graduate

...

Maria AGUILER A IFP School

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Solid links between R&D and training Its integration in IFP guarantees the School access to a high-quality scientific environment. Almost 100 IFP res­ earch engineers teach at the School. More than 180 doctoral students work in the research laboratories and more than 70 students are undertaking one of the four research master’s programs granted by the School with partner universities.

Geology students on a field trip to study the Aren sandstone outcrop in the Spanish Pyrenees.

Advisory Board (1) Representing industry Jean-Claude Careil Senior Leadership Consultant, Shell Project Academy

Odile de Damas-Nottin Head of Recruitment, Total

Jean-Dominique Percevault Honorary President, Schlumberger SA

Jean-Baptiste Renard Group Vice-President Europe, BP

Anne Decressac

Representing higher education and research

Senior Executive Vice-President, Human Resources and Communications, Technip

Élizabeth Crépon

Christian Deleplace

External Relations Manager, École Polytechnique

Powertrain Design and Technology Manager, Renault

Carlo Giavarini

Philippe Marcus

Bernard Leduc

Deputy Vice-President, Exploration-Production, Gaz de France

Professor at the Université Libre de Bruxelles, Director of the Applied Mechanics Department (Belgium)

Pedro Miro Roig

Representing alumni Philippe Bauer CEO, Siemens Automotive Hydraulics

Joseph Castrec Head of the Design, System, Transmission entity of PSA Peugeot Citroën

Claude Chavanne Director of the St Fons factory, Arkema

Francis DUSEUX Chairman and CEO, Esso SAF

Professor at La Sapienza University, Rome

Technology Director, Cepsa

Alain Storck

Jean-Yves Ortola

Director of Insa (Institut national des sciences appliquées) of Lyon

(1) as of March 1, 2008

Head of Training Department, Total

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Innovation-oriented scientific

action and policies


Innovation is a work in progress: from the organization of its research to its evaluation, from prospective to patent applications, from involvement in national research to European partnerships, IFP has set up the structuring policies and knowledgesharing networks it requires to meet the challenges associated with the energy transition.

A network of diverse scientific expertise

50

An efficient objective-oriented organization

56

A policy of European and international partnerships

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As the Nobel Prize for chemistry awarded in 2005 to IFP’s former Director of Research, Yves Chauvin, illustrates the institute’s positioning leads it to tackle the scientific hurdles hampering technological progress in industry head-on. With the backing of its Scientific Board and its partners from the world of academic research, IFP implements an exacting scientific policy in this respect. Skills management, national and international partnerships, long-range thinking, exploratory research, evaluation of research teams and involvement in the French Research and Innovation System (SFRI) are all illustrations of this policy.

A network of diverse scientific expertise

A variety of skills Geologists, motorists, chemists, mathematicians, etc.: the list of scientific communities to which IFP’s 1,109 researchers, engineers and technicians, 300 of whom are PhD holders, are attached, is very long. In order to meet the challenges associated with the energy transition, IFP is constantly evolving the skills of its teams and the way they are organized. To enhance their capacities to supervise thesis students, each research department has drawn up a multi-year national accreditation to direct research plan with a view to significantly increasing the number of researchers with the qualification (49 at the end of 2007).

A highly committed Scientific Board IFP’s Scientific Board is made up of 14 advisors whose expertise covers all IFP’s research fields. The board is also assisted by experts. 2007 saw the appointment of a new chairman, Bruno Chaudret, who replaced Olivier Faugeras. A member of the French Academy of Sciences, Bruno Chaudret is director of the CNRS’

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310 scientific partnerships underway in 2007 between IFP and research or higher education bodies in France and abroad. 92% of PhD students having successfully defended their thesis secure employment within the following year.

coordination chemistry laboratory in Toulouse. Each year, the Scientific Board makes recommendations concerning IFP’s R&D program. Members and experts select PhD subjects from amongst those put forward by research divisions and they examine the progress of theses mid-course. The Board is also responsible for the scientific evaluation of research teams and takes part in events organized to discuss specific themes in promising areas. With 8 members active in foreign laboratories and a Nobel prize-winner – Yves Chauvin, formerly research director at IFP –, the Board has a global outlook and helps ensure that the research conducted at IFP reflects the highest international standards.

Research evaluation To guarantee the scientific quality and relevance of the research work carried out, IFP’s Scientific Board evaluates each research division every four years. Evaluation committees are made up of Board members and other renowned scientists in the relevant field. On the basis of a report written beforehand by the division being evaluated, the committee

spends a day meeting its managers and researchers. There is a particular focus on the relevance of projects underway, the industrial impact of results, the list of scientific publications and patents filed, the number of theses defended and the placement of doctoral students. Two such evaluations were carried out in 2007: “Energy Applications Techniques” and “Geology – Geochemistry - Geophysics”. The number of scientific publications in peer-reviewed international journals was 189 in 2007, an increase of more than 20% compared with 2006.

Scientific ties There are a large number and broad range of collaborative research partnerships underway between IFP and French, European and international research laboratories: doctoral theses conducted in partnership with the university where the student is enrolled, involvement in financed collaborative projects (ANR, EU, Ademe, etc.), expertise transfer, the financing of placement students or studies, training. In the vast majority of cases, the work carried out leads to joint publications with partner researchers. In the fall of 2007, there were

310 such collaborative partnerships underway between IFP and research or higher education bodies. Of these, 15% were with foreign universities, 36% with CNRS laboratories, 35% with universities or graduate schools and 14% with other public bodies (CEA, Ademe, Inra, Inria, Andra, Cerfacs, BRGM, etc.). In addition, the framework agreement with the CNRS was renewed in April 2007. The organization of international scientific events also facilitates exchanges with academic communities. For example, IFP organized a Scientific Seminar in April 2007 at IFP-Lyon on the theme “Molecular characterization of heavy oils and coal liquefaction products” as well as a conference in Rueil attended by 240 people entitled “Thermodynamics 2007”, organized jointly with various bodies including the Royal Academy of Sciences.

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A network of diverse scientific expertise

Exploratory research and prospective Crucial to the way research programs evolve over the course of time is the long-range thinking that takes place on a regular basis in order to define the markets and technologies on which IFP should focus its work. In 2007, this long-range thinking focused more particularly on hydrogen and carbon, as well as electricity storage, algae and multi-scale modeling. The aim of exploratory research, coordinated by Scientific Management, is to explore innovative research avenues in terms of the methods implemented or applications. With a budget approaching �9 million, there is a particular focus on projects promoting New Energy Technologies (NET). 2007 saw the launch of several projects relating especially to new materials for catalysis and adsorption, the recovery of thermal energy from engines, the analytical characterization of fuels, the thermodynamics of oxygencontaining compounds and the digital simulation of particle flows in a fluid. Results obtained in 2007 include the modeling of major deformation faults, the calculation of fuel viscosity by molecular dynamics, the synthesis of hybrid organometallic materials and the study of these materials through molecular modeling, gasoil cetane number

prediction, the synthesis of controlledgeometry nanoparticles for catalysis and the tomography of particles on a nanometric scale.

Rooted in Europe The European Union’s 7 th framework-program (FP7) was launched in 2007 and IFP put forward 27 projects, nine of which were accepted, with three still under consideration at the start of 2008. The projects accepted relate, in particular, to alternative fuels (Optfuel, Ingas and Alfa-bird), onboard systems (Modelisar), CO 2 capture (Decarbit and Cesar) and assisted hydrocarbon recovery (Ecco). IFP also continued to work on projects associated with FP6.

«

PhD theses represent a rich source of new ideas and concepts for IFP. 176 theses were underway at the end of 2007 with one third of them being prepared by foreign researchers. 55 theses were defended in

...

the course of the year Sébastien Rohais Geology-Geochemistr yGeophysics Division

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2007 Prix Roberval Winner On January 24, the book written by Jean-Paul Vandecasteele, a former member of IFP’s Scientific Management, entitled “Microbiologie Pétrolière” (“Petroleum Microbiology”) and published by Éditions Technip in the “IFP Publications” collection, was one of the winners of the 2007 Prix Roberval, receiving a special mention in the “higher education” category. This international competition, organized by the Université de Technologie de Compiègne, is designed to encourage publications in the French language explaining technology across all media. This year, 344 entries were put forward for the Prix Roberval. The jury announced the winners at a ceremony placed under the patronage of François Goulard, Minister of State for Higher Education and Research.

PhD programs A rich source of new research themes and methods, most PhD thesis work is carried out in IFP’s laboratories but some is conducted in academic laboratories, often backed by ANRTCifre grants. 176 theses were underway at the end of 2007 with one third of them being prepared by foreign researchers. 55 theses were defended in the course of the year. 92% of PhD students who successfully defended their thesis during the year secured employment. In addition, IFP welcomed around thirty postdoctoral researchers, mostly from abroad, into its laboratories in 2007.

In 2007, four new books were published in the “IFP Publications” collection (published by Éditions Technip).

Knowledge management and sharing Optimizing the management of knowledge and promoting its widest possible dissemination – to the public authorities, scientific and economic circles, and industry – is one of IFP’s publicinterest missions. With this objective in mind, IFP’s scientific journal, Oil & Gas Science and Technology is freely available on the Internet. This two-monthly peer-reviewed journal, indexed in the major international databases, publishes themed reports and summary articles relating to the gas and oil chain and more generally all disciplines relating to the energy field within the context of sustainable development. 65 new articles were published in 2007, and there are now 650 articles that can be freely accessed in their entirety at (http://ogst.ifp.fr). The journal’s international readership continues

to be confirmed, with a significant increase in the number of times it is quoted and more than 700,000 articles downloads registered in 2007. Additionally, four new books were published in the “IFP Publications” collection (published by Éditions Technip): - “Géopolitique de l’énergie - Besoins, ressources, échanges mondiaux” (“Energy geopolitics Needs, resources, world trade”) by JeanPierre Favennec, offers a global vision of a sector that is fundamental for the economy, but also for international politics; -“Le plein de biocarburants ? Enjeux et réalités” (“Filling up with biofuels? Issues and realities”) by Daniel Ballerini, is aimed at the widest of audiences. It offers a simple description of current technologies as well as those being developed in the field of biofuel production; -“A Geoscientist’s Guide to Petrophysics” by Bernard Zinszner and François-Marie

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A network of diverse scientific expertise

Scientific prizes and awards obtained in 2007 by IFP researchers • 2007 Prix Roberval awarded to JeanPaul Vandecasteele for his work entitled “Microbiologie pétrolière”. • The “A doc 2007” prize from the université de Franche-Comté awarded to Nadège Bouchonneau for her thesis entitled “Étude du comportement des systèmes d’isolation thermique par grandes profondeurs d’eau”. • Honorary Diploma 2007 “Jeune  chercheur en corrosion” awarded to Jean Kittel by the Cefracor; • 2007 Eurocorr congress “Young Researcher” prize awarded to Véronique Smanio. •Best poster prize at the regional congress of the American Association of Petroleum Geologists in Athens, September 2007, awarded to Sébastien Rohais. • 2007 ParisTech 2007 thesis prize awarded to Jonathan Chauvin for his thesis “Estimation et contrôle d’un moteur diesel HCCI”.

Pellerin, is aimed at the international community of geoscience specialists and adopts a geological approach to petrophysics; -“Marine Oil Spills and Soils Contaminated by Hydrocarbons - Environmental Stakes and Treatment of Pollutions” by Christian Bocard, is the translation of the previously published book “Marées noires et sols pollués par des hydrocarbures. Enjeux environnementaux et traitement des pollutions”. It deals with accidental oil and oil product spills at sea, as well as soil and subsurface water contamination by hydrocarbons. IFP also has a dynamic policy on papers at the major international congresses with 435 papers delivered in 2007. In addition, 213 scientific articles were published in international scientific journals, including 189 indexed in the ISI (Institute for Scientific Information) database. Of these, 143, i.e. 75%, are the fruit of academic or industrial collaborative work and 48, i.e. 25% of them, involve international teams. Finally, IFP contributes to the promotion of scientific research and ensures that its knowledge is disseminated to the widest possible audience. To this end, IFP took part in the “Un chercheur, une manip” (“One researcher, one experiment”) events organized by the Palais de la découverte, and was actively present at the Research and Innovation Show in June 2007. It also attended the Fête de la Science (Science Festival) in October, where it presented its work

in the fields of energy, transport and the environment to a broad audience. On the theme of the reduction of greenhouse gas emissions and the capture and geological storage of CO 2, IFP, in association with the Ademe and the BRGM, organized the second international congress on “The capture and geological storage of CO2 - Innovation, industrial stakes and progress”. 500 people attended the congress from some 35 countries. Preceded by a press conference in front of more than 40 journalists, this event also saw the publication of an educational book entitled “CO 2 capture and storage in the subsurface”, aimed at a broad audience. IFP regularly produces analyses, summaries and educational documents and these are made available to the public via its website (www.ifp.com) to keep them informed of the major issues associated with the fields of energy, transport and the environment, as well as the R&D underway at IFP to meet the challenges in these fields. These pages of the website have proved to be a great success, testimony to the public’s interest in these issues.

Organized by IFP, Ademe and BRGM, the second international symposium on the capture and geological storage of CO2 was attended by more than 500 people from some 35 countries.

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Scientific Board (1) Board Members

Experts

Bruno CHAUDRET

In order to cover all IFP’s scientific fields, the Scientific Board is supported by 14 experts who are themselves renowned scientists from both France and abroad.

Chairman, member of the French Academy of Sciences, Director of the CNRS’ coordination chemistr y laborator y ( Toulouse)

Pierre ALBRECHT

Professor at the Louis Pasteur University (Strasbourg)

Pierre BÉREST

Professor at the École Poly technique, Director of the Laboratoire de mécanique des solides

Bernard BLANZAT

Member of the French Academy of Sciences

Jean-Claude CHARPENTIER

Professor at the École nationale supérieure des industries chimiques ( Nancy)

Yves CHAUVIN

Nobel Prize for Chemistr y 2005, Member of the French Academy of Sciences

Michel CHE

Professor at Pierre and Marie Curie University (Paris VI)

Sierd CLOETINGH

Jacques BARBIER

Professor at the Universit y of Poitiers

Benoit BEAUCHAMP

Director of the AINA ( Universit y of Calgar y, Canada)

Alain BONNEVILLE

Assistant director of the Institut de physique du globe, Paris

Sébastien CANDEL

Professor at the École Centrale, Paris, Member of the Board at the Aeres

Jürgen HAFNER

Professor at the Universit y of Vienna (Austria)

Professor at the Universit y of Amsterdam ( Netherlands )

Laurence HALPERN

Michel COMBARNOUS

Roland LANTNER

Professor at the Institut Galilée, University Paris XIII

Corresponding Member of the French Academy of Sciences, Emeritus Professor at the Universit y of Bordeaux I

Director of the Centre CIFRES-MATISSE, Universit y Paris I Panthéon-Sorbonne

Roland GLOWINSKI

Director of the geology laborator y, École normale supérieure de Paris

Professor at the Universit y of Houston ( United States ), Member of the French Academy of Sciences

Bernard LEDUC

Raul MADARIAGA

Geoffrey MAITLAND

Professor at Imperial College ( United Kingdom)

Professor at the Université Libre de Bruxelles, Director of the Applied Mechanics Depar tment ( Belgium)

Guy MARIN

Norbert PETERS

Professor at the Université de Bretagne ( Brest)

Professor, Director of the Institute of Technical Combustion at the Universit y of Aachen ( Germany)

Michel POIX

Professor at the Universit y of Ghent ( Belgium)

Michel MOAN

Francesco PAYRI

Director of the C.M.T., Universidad Politecnica de Valencia ( Spain)

Vice-President of the Paris Dauphine Universit y, Director of the Institut pour le management de la recherche et de l’innovation

Brigitte PLATEAU

Bernard TISSOT

Pierre ROUCHON

Member of the French Academy of Sciences, Chairman of the Commission nationale d’évaluation des recherches sur la gestion des déchets radioactifs

Professor, Head of the IT and distribution laborator y - Ensimag Professor, École des Mines de Paris (1) as of March 1, 2008

Henri VAN DAMME

Professor at the École supérieure de physique et chimie industrielle, Structural and macromolecular physics and chemistr y laborator y

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All IFP initiatives are undertaken within the framework of projects with precise objectives, defined on the basis of IFP’s public-interest missions and industry requirements. To deliver the results expected of a project, the project manager leads a multidisciplinary team which, within the framework of the matrix organization, is made up of researchers from research divisions combining homogeneous expertise. This structure means that skills can be used on the basis of a project’s needs with maximum efficiency and a high level of flexibility. It also provides an opportunity to combine talents, multidisciplinarity being a genuine source of innovation.

An efficient objectiveoriented organization

Quality policy IFP’s new quality policy issued at the end of 2006 is based on a few key concepts: a strong commitment to the French Research and Innovation System (SFRI) and active involvement in the construction of the European Research Area, innovative fundamental research focusing on industrial and societal needs, a high level of attractiveness to its customers and partners, risk control, constant updating of businesses and expertise, knowledge capitalization and transfer. To meet these requirements, the quality policy is hinged around four principal objectives: -  meeting the explicit and implicit needs of its customers and partners; -  enhancing efficient project management; -  continuously improving the services provided by research and functional divisions; -  ensuring the efficiency of support processes. The gradual process of obtaining certification for all R&D business units, completed in the first quarter of 2007, fits squarely with these four objectives. In terms of customer satisfaction, one of the very first requirements of our industrial partners is the ability to meet the stated deadlines. In order to better satisfy this

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15 the number of IFP projects selected by the ANR in 2007 in the context of “programmes blancs” (fundamental research) and applied research programs: CO 2 capture and storage, transport, biofuels, materials and energy storage.

need, and in the context of project-based management, a new project portfolio scheduling and management computer tool (ProGress) has been rolled out in record time. This enables detailed planning of all IFP’s projects (planning with resources, identification of deliverables and milestones) and management of the business units’ portfolios. In addition, it authorizes rapid consolidations on an IFP level and facilitates any necessary resource and program adjustments.

Industrial property policy This is part of an active industrial development approach, aimed at protecting research results in support of IFP’s missions and ensuring technology transfer. IFP’s excellent position in national and international patent-applicant rankings, which it has enjoyed for many years now, stems from its capacity to innovate and transfer technology to industry. In 2007, IFP filed 159 patent applications, placing it in the top 15 national patent applicants in France. In addition, 717 industrial property rights were created abroad. IFP is also the 7 th largest French patent applicant in the United States (in terms of the number of patents issued), according to

The gradual certification of all R&D business units was completed in the first quarter of 2007.

the latest statistics in the Patent Intelligence and Technology Report. IFP’s determination to protect its scientific and technological property represents a fundamental stage in its innovation-oriented research policy. Industrial property specialists are involved right from the start of a research project to examine, with researchers, the potential forms that transfer of results could take. This research/ industrial development integration means that IFP is able to bring its technological innovations to market, working in liaison with its partners. IFP ensures that the processes and equipment it develops and offers are unrestricted in terms of the patent rights of third parties.

Human resources management policy Through the diversity and quality of their skills and their creativity potential, IFP’s employees hold the key to meeting the objectives inherent in the center’s missions. IFP therefore implements a proactive skills development policy, constantly anticipating and tailoring them to its needs. The skills required to implement the strategy have been defined within the context of the Objectives Contract that runs until

876 principal rights created throughout the world (including first-filed patents) United States

86

Japan

46

China

41

Canada

38

Germany

36

UK

36

Netherlands

31

Italy

30

Brazil

19

Spain

18

France

159

Others

336

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An efficient objective-oriented organization

2010, thus determining the corresponding staffing evolutions. The practical implementation of these requirements depends to a large extent on the increased professional mobility of employees and a high volume of training programs oriented according to priorities.

A strong commitment to the French Research and Innovation System (SFRI) Calls for projects issued by the French National Research Agency (ANR) provide IFP with opportunities to reinforce its outside collaborative work. In 2007, 35 projects were submitted and 15 of them were selected in the “programme blanc” (fundamental research, one project) and applied research programs on CO2 capture and storage (three projects), transport (four projects), biofuels (two projects), information and communication technology (two projects), materials and energy storage (three projects). In addition, IFP is the support unit for the ANR’s applied research programs relative to “Chemistry and Processes for Sustainable Development” and “Storage of Energy” for which the first calls for tenders were launched in 2007. It has also

been selected along with the Inra to lead a prospective think tank on the biomass of the future.

«

IFP implements a proactive skills development policy for its personnel. Practical implementation depends to a large extent on the increased professional mobility of employees and a high volume of training programs oriented according

...

to strategic priorities Édith Sagroun, Marion Didier, Éric Froger,

Human Resources Division

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IFP has also been an active member of the network of Carnot Institutes since 2006 for its activities in the field of engines and transport fuels. Today, IFP is involved in four particularly active competitiveness clusters of global importance. It is a founding member, alongside Arkema, the CNRS, Rhodia and Suez, of the Lyon and Rhône-Alpes Chemistry-Environment cluster, led by the Axelera association. After two years of existence, this cluster boasted 128 members at the end of 2007, one third of which are SMEs, and one third research laboratories and bodies. It obtained funding to the tune of �45 million for four major projects and launched six technological projects worth an overall budget of �70 million. The projects in which IFP is particularly involved concern process intensification – in other words the design of more compact units –, the replacement of matter of fossil origin with renewable resources and water treatment. IFP is an active member of the Mov’eo cluster centered on the Île-de-France and Normandy regions. Its theme is “Cars and public transport”.


IFP is mainly involved in the strategic “Energy and Environment” activity and, notably, is contributing to ten or so R&D projects focusing on engine/fuel systems. IFP is also active in the Lyon Urban Trucks and Bus 2015 cluster. The objective of this cluster is to optimize the movement of goods and people in an urban setting. In charge of the “Powertrain and kinematic chain” program, it is a partner in several innovative projects dedicated to heavy-duty vehicle powertrains. In the Île-de-France region System@tic cluster, which focuses on high-performance computation, software and complex systems, IFP is conducting research into real-time system modeling, the simulation of turbulent combustion for engines, process simulation, molecular modeling and simulation of fluid flows in oil reservoirs.

Research Fair From June 7 to 9, 2007, IFP took part in the 3rd European Research and Innovation Fair, held at the Porte de Versailles exhibition center in Paris, where it presented its actions concerning energies in the transport of tomorrow. Valérie Pécresse, the Minister in charge of Higher Education and Research, opened the trade fair at her Ministry’s stand, where she had an interview with Olivier Appert. IFP displayed the natural gas-powered Clever vehicle developed as part of a European project. A multimedia display illustrated the fuel mix of the coming decades. Staff from the Economics and Information Watch and Management Division were present to welcome visitors to the stand and answer their questions. The Refining-Petrochemicals Technology Business Unit also played a role, taking part in a round table on the future of biofuels. Finally, the Powertrain Engineering Technology Business Unit, presented the Carnot IFP-Moteurs label at the Carnot Institutes stands. These actions helped to publicize IFP’s work in the field of transport and biofuels.

The Lyon and Rhône-Alpes ChemistryEnvironment competitiveness cluster, lead by Axelera, now boasts more than 128 members, a third of which are research laboratories and bodies.

Quality and environment certification 2007 saw renewal of the following quality certificates: • “Research and Development in the fields of Exploration-Production of oil and gas and capture/transport/ geological storage of CO 2” - March 2007; • “Research and Development, consulting and expertise in the field of powertrain engineering, pollution control, fuels and lubricants” - March 2007; • “Performance of expert assessments and R&D activities relative to transformation processes of any accessible carbon sources in combustibles, fuels and chemical intermediates” - December 2007.

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In order to find effective solutions to the global challenges associated with the energy transition and tackling climate change, IFP operates an increasingly dynamic international policy. Within the context of its mission as an international energy player, IFP is forging more and more international partnerships in the field of energyrelated technologies.

A Policy of European and international partnerships

European collaborative research In March 2007, the European Union set itself some ambitious objectives with a view to tackling climate change. To help achieve these objectives, IFP is playing an important role in drawing up European research programs with Olivier Appert, its chairman, acting as vice-president of two European technological platforms. The first is the Biofuels platform and the second is the Zero Emission Fossil Fuel Power Plant (ZEP), in the field of clean coal with CO 2 capture and storage. The recommendations of these platforms are implemented within the context of collaborative projects financed by the European Commission via the Research and Development Framework Program (FP). As an extension of the initiatives associated with FP6, IFP was involved in 23 proposals put forward for the first call of the 7th framework program (2007-2013). These initiatives relate to a broad range of sectors including energy, transport, aeronautics, nanotechnologies, information and communication technologies, etc.

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2007, a productive year for European collaborative initiatives • the HyICE (Hydrogen Internal Combustion Engine) project resulted in tests that demonstrated similar levels of performance as current diesel engines, but without the associated pollution. Funded by the European Commission as part of FP6, this project, coordinated by BMW, involved ten European partners and lasted three years; • IFP has also been committed to the establishment of new European structures as one of a group of research centers working alongside industry to create public-private partnerships in the hydrogen sector. This partnership will be co-financed by the European Commission and industry. In addition, IFP is pursuing a policy of bilateral partnerships with European research centers working on New Energy Technologies (NET). For example, on November 12, 2007, a memorandum of understanding was signed with TNO, the Dutch research institute, covering research in the fields CO 2 capture and storage and hybrid vehicles, in particular. International partnerships Once again, in 2007, international partners turned to IFP for sustainable technological solutions to the growing global demand for energy, maintaining the momentum established in 2006.

A few of the highlights in 2007 were: - a strengthening of relations with our strategic partners in the Middle East (Saudi Arabia, United Arab Emirates, Qatar) and the Mediterranean basin (Algeria and Libya) together with a determination to ensure the durability of these relations; - an increase in the number of cooperation agreements relating to the development of energy-related technologies. In the field of R&D, there was a specific focus on countries in which there is significant potential for developing cooperative partnerships across all IFP’s businesses: China, India, Malaysia and Mexico. On October 23, the framework cooperative agreement between IFP and Petrobas was extended for a period of five years, thereby reinforcing the partnership with Brazil. The agreement has already led to several concrete collaborative projects, including IFP’s involvement in the Bahia CO 2 capture and storage project in the Reconcavo basin in Brazil. IFP has also been involved in setting up various degree and continuing professional training programs, necessary to developing the industrial and university sectors in countries such as Venezuela, Libya and Malaysia. On June 22, 2007, IFP signed a protocol agreement with the new King Abdullah University of Science and Technology (KAUST) in Saudi Arabia defining their collaboration in international

research, higher education and technological development programs. Finally, IFP organized the annual Carbon Sequestration Leadership Forum’s conference, held in Paris from March 25 to 28, 2007. The CSLF is an American Department of Energy initiative open to international cooperation for R&D in the fields of CO2 capture, transport and storage. IFP and the CEA represent France within the CSLF.

«

Further to these collaborative initiatives, in November 2007, IFP signed a memorandum of understanding with the Dutch research institute TNO, covering in particular research in the fields of CO 2 storage, the exploration and production of oil and gas, hybrid vehicles, biofuels and powertrains

...

Erik Verbraeken Legal Division

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From research to

industry


Preparing the conditions for a smooth energy transition in the fields of energy, transport and the environment means overcoming a number of technological and economic hurdles without delay. The solutions to these major challenges for society can only be found through close partnerships between public research and industry. In this necessary partnership on the road to progress, there is not one, but several options to explore. Since its inception, IFP’s vision in exploring these options has led to many past and present successes.

Partnerships with industry

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Highlights

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67


From the application of fundamental research to the creation of a major international company listed on the Paris and New York stock markets – Technip – , the provision of technological support for SMEs, spin-offs and involvement in investment funds, IFP places research and innovation at the heart of its scientific strategy.

Partnerships with industry

IFP has spent many years establishing a variety of technology transfer routes in order to find industrial outlets for its R&D work. One of the original aspects of this approach is its support of or involvement in projects that relate not only to industrial groups but also to SMEs and start-up companies. IFP develops technologies designed for the oil and automobile industries, thereby covering the entire chain, from oil production to use. But IFP also transfers some of these technologies to SMEs, adapting them to the needs of other sectors that are sometimes far-removed from its research fields.

23 partnership agreements were signed in 2007 with SMEs, and four of these led to patents being filed.

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A patent culture The first key element of IFP’s transfer strategy is patent filing. Since its inception, IFP has established a patent culture and pioneered the sale of process licenses, especially in the refining sector. Patent potential is a major consideration at the launch of any research project and IFP works with its industrial property experts and R&D project managers to establish this.

JIPs, an original form of industry-research cooperation A significant amount of IFP’s research is conducted in partnership with industry. As well as bilateral contracts and consortiums, whereby research results are shared, for the past ten years or so IFP has been using a form of contract that is not widely exploited in France but one that is becoming increasingly successful with industrial players: JIPs (Joint Industry-funded Projects). The industrial partners have access to the research results but IFP retains the industrial property rights. This type of arrangement gives IFP an understanding of industry’s needs and the risks are shared; industry has the chance to benefit from IFP’s expertise and its cutting-edge technologies.

The creation of benchmark industrial players in all IFP’s areas of expertise

This cutting-edge technology illustrates IFP’s capacity to offer technological solutions that anticipate more stringent international standards designed to protect the environment. Technip developed in a similar way. Created in 1958 by IFP, the group today employs more than 22,000 people and is ranked in the top five companies globally in the field of engineering and the construction of facilities for the oil and gas industry. On the exploration-production side, IFP developed its Beicip-Franlab subsidiary, a consultancy and research company and publisher of geoscientific software for the oil and gas industry. It operates in more than 100 countries and works with more than 500 oil companies and institutions. In the field of powertrains, D2T is a company that specializes in the engineering and marketing of testing facilities for engines and powertrains. An internationally recognized player in the field of test bench automation, it is present in Europe, the United States and

Asia. For IFP, D2T represents an important platform for disseminating and transferring technological innovations in the field of clean and economical vehicles, in return for royalties. In the field of continuing education, IFP Training, which was created in 2003, forms, together with the IFP School, the vehicle for IFP’s statutory training mission. This company has around one hundred employees who train directors, managers and technicians from the oil and gas, petrochemical-chemical and automobile industries. The latest company development: Geogreen. Created in 2007 by IFP in partnership with Géostock and BRGM, it is the first company to specialize in engineering services dedicated to the transport and geological storage of CO 2. Geogreen was created with two ambitions in mind. The first was societal, namely to help reduce greenhouse gas emissions whilst the second had an industrial objective, namely to establish a competitive offer in the transport and geological storage of CO 2

Prosernat: construction of a gas drying and deacidification complex for BP Exploration in Saqqara (Egypt).

The scale and high profile of several industrial companies created by IFP illustrate the success of its technology transfer policy. These companies represent important technology transfer links in each of its fields of activity: exploration-production, refining and petrochemicals, powertrain engineering and, finally, education and training. IFP also holds stakes in some companies to support their development. The most outstanding success of recent years is Axens. Created in 2001, today the company is a global leader in refining technologies and catalysts for the production of clean fuels. For example, the company markets the Prime-G+ TM refining process which is generally accepted as the benchmark process for clean gasoline production worldwide.

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Partnerships with industry

«

The scale and high profile of several industrial companies created by IFP illustrate the success of its technology transfer policy. These companies represent important links in terms of technology transfer in each of our fields of activity

...

Frédéric Kolenda SMEs Relations Division

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market. Initially the commercial offer will relate to studies: orientation studies enabling manufacturers who produce CO 2 to examine potential storage solutions, feasibility studies, etc. In the longer term, Geogreen will provide detailed engineering, CO 2 storage construction supervision, and injection site safety and maintenance management services, as well as monitoring services relating to the closure of storage sites. And what about tomorrow? New Energy Technologies (NET) such as biofuels or CO 2 capture technologies, to which IFP devotes significant R&D resources, will probably lead to the creation of new companies or to shareholdings with a view to finding outlets for IFP’s innovations.

Technological support for SMEs Twenty years ago, IFP was a pioneer in providing SMEs with technological support and expertise. IFP’s objective was to transfer scientific and technical know-how to them. Today, the relationship is more one of jointdevelopment: IFP works with companies to develop technologies that are suited to their specific needs. The majority of projects –

around twenty agreements per year, more than 500 in 20 years – last between one and two years and focus mainly on the areas of the environment and pollution abatement. To facilitate contacts and exchanges with SMEs, IFP has created regional offices in Lillebonne, Lyon, Nancy, Nantes, Paris and Pau. The directors of the SMEs involved in these partnerships agree on the many associated advantages: validation of technologies by digital testing, prototype tests, support for the construction of an industrial pilot, but also legal support, technological intelligence, networking, not forgetting IFP’s profile with bankers and customers.

Spin-off support IFP recently reinforced its spin-off policy, in other words the creation of start-up companies using technologies, processes, products or expertise developed at IFP. The system provides for a period of incubation of between 6 and 18 months during which time IFP supports the employee’s project. IFP’s industrial, legal and financial teams help employees draw up a development plan for their companies and finalize the legal, administrative and financial aspects. Since this policy was reinforced


midway through 2005, one company has been created and a second project is in the incubation phase.

Involvement in two investment funds At IFP, support for innovation also takes the form of financial support for businesses during fund-raising campaigns. IFP contributes its technical expertise and takes part in the process of deciding which companies to support through two investment funds: - the 3E seed money fund (Emertec-EnergyEnvironment) helps finance young innovative companies whose aim is to reduce the impact of human activities on the environment and guarantee access to sustainable, reliable and cheap energy. The fund was created in 2003 by IFP with the Caisse des dépôts et consignations (CDC), Natexis and the CEA. It has funds amounting to �15.5 million and has already invested between �0.2 and 1.3 million in some ten companies; - the Demeter expansion capital fund is the first European fund to specialize in eco-industries (water, air and waste treatment, pollution abatement of sites, etc.) and eco-energies. The fund was created in 2005 by the Caisse des dépôts (CDC Entreprises), IFP and Veolia Environnement. It has raised a total of �105 million from some twenty corporate investors and has shareholdings of between �1 and 10 million. In conclusion, since its inception, IFP’s commitment to the industrial transfer of its research results has enabled it to efficiently ensure a continuum between research and industry. Industrial partnerships are fundamental for IFP’s researchers in that they enable them to define their research programs as a direct function of company needs. Finally, IFP contributes to the competitiveness of companies within what is often a fiercely competitive context. It is from this symbiosis between research and industry that the solutions to the challenges associated with the energy transition in the fields of energy, transport and the environment will emerge.

portfolio OF IFP’S INVESTMENTS (1)

Refining and petrochemicals, catalytic processes

Axens 100% Eurecat* 50%

Process simulation

RSI* 100%

Industrial equipment

Vinci Technologies* 34% CTI** 18%

Natural gas treatment, engineering

Prosernat* 100%

CO 2 storage, engineering

Geogreen* 40%

Powertrain engineering

D2T* 100%

Geoscience consulting and software

Beicip-Franlab 100% Tech’ Advantage* 100%

Training

IFP Training 51%

Spin-off

Poweltec** 48%

Investment funds

Demeter* 10% 3E* 6%

Stakes held in listed companies

CGGVeritas 5% Technip 3%

* : via IFP investissments ** : via ISIS développement (1) as of February 1, 2008

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The industrial companies that IFP helps to develop through stake-holdings represent major technology transfer vectors, fostering the emergence of the innovations of tomorrow and supporting the creation of jobs. These companies enjoyed numerous successes in 2007: increase in turnover and profits, expansion of product range, development of collaborative projects and promising industrial outlets.

Highlights Subsidiaries and shareholdings Axens In a context that is still buoyant due to improvements in fuel quality, the conversion of heavy fractions, biofuels and petrochemicals, Axens enjoyed a number of successes in the market for refining and petrochemical technologies and related catalysts. In particular, the company brought to market a new range of high-performance hydrocracking catalysts, selected for new “grass-roots” complex technologies. A large number of customers from around the globe are putting their trust in this new range. Finally, for the implementation of its unique Esterfip-H TM technology for the production of biodiesel by heterogeneous catalysis, Axens received the Chemical Engineering magazine’s Kirkpatrick Award, given to the most outstanding process of the year. This prize, awarded biennially by the American Chemical Engineering magazine since 1933, recognizes “farreaching innovations in terms of process chemical engineering and new product development”. Innovations are judged both with respect to the merits of the development itself and the difficulty of the problems encountered and overcome throughout the process. The winner is chosen by an international panel made up of chemical engineering specialists from American and European universities. This is the first time that a French company has won the Kirkpatrick Award.

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Beicip-Franlab Both sides of Beicip-Franlab’s business – consultancy and software – continued to develop in 2007, with a growth in turnover of almost 20% in comparison with 2006, following close on the heels of a 30% increase in 2006 over 2005. Beicip-Franlab’s international presence was further reinforced with the creation of two subsidiaries in 2007, in Brazil and Mexico. Notable reservoir study contracts include service contracts concerning various giant carbonaceous fields in the Middle East for Saudi Aramco (Saudi Arabia), Kuwait Oil Company (Kuwait) or Qatar Petroleum (Qatar) and the continuation of studies for major fields in Algeria (Hassi Messaoud and the Berkine basin, in particular), in Libya, Mexico (Cantarell) and Venezuela. Exploration studies, which increased, were conducted in various offshore sedimentary basins (Angola, Brazil, Congo, Ivory Coast, Gulf of Mexico, North Sea) or onshore ones (Algeria, Mexico, Pakistan, Sudan, Venezuela) for international or national companies. Reserve audit/certification or unitization studies were conducted in various regions of the world. Multi-year framework agreements were signed with a variety of companies (including ADNOC, BP, ExxonMobil, KOC, Sonangol, Total). In the software field, the first commercial versions of the new-generation Puma Flow and Condor Flow (reservoir simulation) and Fraca Flow (fractured field modeling) software products were released, while the new-generation Temis Flow basin-modeling project was launched. These projects, which are based on the OpenFlow platform, are supported by around a dozen national and international oil companies. Some of the most noteworthy sales of the year concern agreements with Russian companies (DMNG, Gazpromneft, GazpromneftCentre Shpilman, Rosneft, Tatneft), with KOC, PDVSA, Petronas and Total, and the start of marketing of Dionisos stratigraphic modeling software (Chevron, DMNG, Eni, ExxonMobil, Petrobras, Petronas, RepsolYPF, Saudi Aramco, Shell).

further reinforces the progress made jointly with IFP in the field of modeling-assisted tests (rapid prototyping and Hardware In the Loop).

IFP Training 2007 was the sixth consecutive year of growth for IFP Training. Having provided more than 8,000 days of training, half of which to foreign customers, over time IFP Training has become a prominent world player in the field of specialized technical training for the gas, oil, petrochemical and engine industries. Growth in 2007 primarily concerns the ExplorationProduction division and, to a lesser extent, the Refining-Petrochemicals-Chemistry-Engineering division. There is a high demand for engineer and technician training for these industries in France and particularly in oil and gas-producing countries due to an increase in the number of industrial projects and to demographic renewal. The training offered by IFP Training is constantly improved and diversified to meet the evolving needs of industry. During the course of 2007, training was provided in five languages (French, English, Spanish, German and Dutch).

Eurecat A joint subsidiary of the American chemical group Albemarle and IFP Investissements, Eurecat is a service provider for the refining industry. It is a global leader in catalyst regeneration and recycling services. During the course of 2007, the company’s business continued to thrive, driven by the emergence of new specifications relating to the sulfur content of gasoline and diesel, and the resulting increase in the frequency of industrial unit shutdowns. 2007 also saw confirmation of the progress made in the United States and Venezuela in the field of catalyst sulfurization, along with the renewal of several framework contracts with major oil companies. It was against this background that it decided to increase the regeneration capacities of the La Voulte plants in France and the Jubail plant in Saudi Arabia.

units within the deadlines required by its customers. Prosernat has also strengthened its foothold in the gas sweetening segment, with sales of licenses for various major gas production sites, studies and the supply of an amine unit for the Umm Shaiff site in the United Arab Emirates. Finally, Prosernat is continuing to develop its activities in the sulfur recovery segment, selling licenses, studies and a Clauspol ® unit for Colombia.

RSI RSI is a company that is recognized worldwide for its process simulation solutions and services for the “upstream” oil industry, the LNG supply chain, and the refining and petrochemicals industry. It continued to grow in 2007, thanks to its three operational centers (Grenoble, Houston and Beijing), which successfully produced operator training simulators and studies using its proprietary software Indiss TM . RSI thus makes a positive contribution to protecting the environment and improving site safety, thanks to better personnel training and optimization of the design and production of oil fields and refining units.

Shareholding portfolio withdrawals As part of a process of rationalization of its shareholding portfolio, IFP sold off its minority shareholdings in Imagine, Principia, Airmeex and Cydarex and withdrew from Thide Environnement.

Technological support for SMEs During the course of 2007, the SMEs Relations Division signed 23 partnership agreements with SMEs, four of which led to patents being filed. On the strength of expertise developed at IFP, two companies obtained promising industrial outlets:

Prosernat D2T D2T expanded its product range in 2007, proposing engine calibration services and an updated automation system, Morphée 2. The company has therefore become a major player in the powertrain development sector. The very warm welcome given to Morphée 2 on the German market, the product having been selected by BMW for its new testing center,

Prosernat enjoyed strong growth in 2007 in a dynamic gas treatment engineering market. The company took a record number of new orders, winning some significant engineering and supply contracts for gas dehydration and compression units. It signed its biggest ever order for the production of molecular sieves in Venezuela, thereby confirming its new scale. The company’s good results are testimony to its teams’ capacity to produce larger

Covaltech : with the Optimgaz ® process, which prevents VOCs (volatile organic compounds) generated by hydrocarbon fumes in service stations being released into the atmosphere. The process enables recovery of all VOC emissions during storage tank filling or fuel distribution phases, their condensation and return to the tanks. The first machine has been operational in a service station in Ressons-sur-Matz (France) since June

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Highligths

2007 and, in October, GEP (Groupement des entreprises para-pétrolières et para-gazières ) awarded Covaltech its second prize for innovation.

STVI : with the Polytax ® process, which enables the replacement of dual-fueling in certain industrial vehicles. This is an onboard computer solution that accurately measures gasoil consumption for non-drive uses in industrial vehicles (in particular cranes and cement mixers). A recorder differentiates and manages fuel consumption, making it possible to benefit from a partial reimbursement of the TIPP (French domestic tax on the use of oil products).

Investment funds

As a result of the capital gains made, the rate of return on IFP’s investments was 27% in September 2007. 60% of the funds raised already having been invested, the management team plans to end the investment period and make further sales in 2008.

Cogebio, the incubation of this second project began in 2007. The ultimate objective is to create a company developing an innovative process for the production of electricity and heat by biomass combustion.

3E : Two new investments were made by the fund in 2007. The first was in S’Tile, a company originating from the CNRS having developed an innovative process for the development of polycrystalline silicon plates for the solar panel market. The second was in Skywater, a company that has developed an innovative range of products in the field of rainwater recovery for industry and local authorities.

Demeter: Demeter’s portfolio at the end of 2007 consists of 16 companies, several of which, particularly in the field of biofuels and biomass, have been the subject of expert assessment by IFP. Two of the companies in the portfolio have already been floated on the stock market: Vergnet, a wind turbine manufacturer, and Aerowatt, a wind farm operator.

IFP Expertise spin-offs Poweltec, the first company resulting from IFP’s spin-off policy, was created in 2007. It made significant profits straight away and its order book augers well for strong growth in 2008.

First service station to be equipped with the Optimgaz ® machine: Shell station in Ressons-sur-Matz (France).

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IFP is a world-class publicsector research and training center, aimed at developing the technologies and materials of the future in fields of energy, transport and the environment. It provides public players and industry with innovative solutions for a smooth transition to the energies and materials of tomorrow – more efficient, more economical, cleaner and sustainable.

www.ifp.com


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