Total signed a Memorandum of Understanding with the Finnish oil company, Neste Oil, with the aim of jointly studying the possibility of building a production plant for a new generation biodiesel product. The unit would be located in Europe, in one of Total's refineries and is expected to begin production in 2008.

This new biodiesel will be manufactured using a wide range of vegetable oils and animal greases. Engine tests conducted by independent laboratories demonstrate a significant improvement in the performance of diesel fuels containing this new generation biodiesel.

In association with fatty acid methyl esters, this new biofuel, already recognised by the European Directive 2003/30/EC, will contribute to achieving the aim of incorporating 5.75% of biofuels, as recommended by that directive by 2010. This project is part of Total's desire to participate in the development of biofuels and to satisfy the growing needs of the diesel market. This comes in addition to the recent agreement signed with Sofiproteol / Diester Industrie on rapeseed methyl esters supply.

As the European leader in biofuels, Total has been very active in the promotion of those products in France for over ten years. In France, Total is the main consumer of ethanol through its production of ETBE and of biodiesel, by incorporating rapeseed methyl esters in its diesel fuels. Its consumption of biofuels corresponds to the cultivation of 300,000 hectares.