Ref. Ares(2018)857400 - 14/02/2018
Commissioner Carlos Moedas
Meeting with Mr Gomes da Silva,
Executive President of Galp Energia
BERL 09/099
Thursday, 17/09/2015
17:00 - 17:30
Main contact person:
, Cabinet Member: CARVALHO Maria Da
, RTD-G.2, CDMA
Graca
Contributor(s):
RTD colleague at meeting: Name, , RTD-
,
, RTD-G.1, unit, office
CDMA
Back up (in case of absence):
,
, RTD-G.2, CDMA
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TABLE OF CONTENTS
KEY
MESSAGES
AND
FIGURES
Page
No
3
1.
STEERING
BRIEF
Page
No
4
1.1
Scene
setter Page
No
4
1.2
Objectives
Page
No
4
1.3
Line
to
take Page
No
4
2. SPEAKING POINTS
Page No 5
3. DEFENSIVE POINTS
Page No 8
4.
CURRICULUM
VITAE
Page
No
9
5.
BACKGROUND
INFORMATION
Page
No
10
5.1
Galp
Energia's
activities
in
energy Page
No
10
5.2
KIC
InnoEnergy
Page
No
10
5.3 Galp Energia's innovation, research and technological development activities Page No 11
6.
FACTS
AND
FIGURES
Page
No
12
6.1 Galp Energia's participation in FP7 and Horizon 2020
Page No 12
6.2
Galp
Energia
facts
and
figures
Page
No
12
7.
SOCIAL
MEDIA
Page
No
13
8.
ANNEX
Page
No
14
Company Profile (PDF)
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KEY MESSAGES
• Horizon 2020 does not support 'classical' oil and gas R&I (on exploration
and production). Our only involvement in this field is addressing the
environmental aspects of unconventional hydrocarbons development (i.e.
shale gas).
• Our main focus in the fossil fuel areas remains Carbon Capture and
Storage (CCS). Galp Energia, with their strong subsurface expertise, is
well-placed to contribute to R&I under Horizon 2020.
• In addition, the involvement of Galp Energia in renewables (biofuels,
wind, solar) is very relevant to the objectives of the Energy Union and the
new SET Plan.
• Galp Energia is encouraged to contribute to the implementation of the
new SET Plan, through normal Calls for Proposals and through their
involvement in KIC Innoenergy.
KEY FIGURES
FP7
Horizon 2020
Total number of participations
3 -
Total number of signed grant 3 -
agreements
ERC – Number of grantees
Marie Sklodowska-Curie –
Number of grantees
EU total financial contribution to EUR 251,721
-
participation
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1. STEERING BRIEF 1.1 Scene setter
You will be meeting Mr. Carlos Gomes da Silva, Executive President of Galp Energia, in
your office on 17/09/2015 from 17:00 to 17:30 at his request. The purpose of the meeting is to
discuss R&I activities in the area of oil and gas and how Horizon 2020 covers these areas, and
KIC Innoenergy in which Galp is a participant.
1.2 Objectives
1. Clarify our R&I activities in the field of fossil fuels.
2. Inform GALP Energia about the newly launched SET Plan Communication.
3. To confirm Galp Energia's commitment to cooperate in the context of the updated
SET Plan including their participation in KIC Innoenergy.
1.3 Line to take
Explain the history and rationale of the (limited) activities we have in the field of fossil fuels.
Clarify the SET Plan objectives in the context of the Energy Union, in particular those
supporting to become 'No1 in renewables'.
Enquire about Galp Energia's R&I activities in the SET Plan priority areas, and seek their
commitment to the new SET Plan's objectives and priorities.
Explain the role KIC InnoEnergy has in the SET Plan process, including on R&I priority
setting, bringing innovation to the market, development and implementation of Inducement
Prizes for Energy, Education and Training activities.
Invite Galp Energia to take part in the forthcoming debates on the SET Plan.
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2. SPEAKING POINTS
On Research & Innovation in the area of fossil fuels:
• Explain that EU funding for fossil fuels has decreased steadily throughout
different Framework Programmes (from 38% of the energy research
budget in FP2 to 0% in FP6) as a result of changing political agendas:
o FP4 supported the development of technologies for hydrocarbons
exploration and production to ensure
security of supply.
o In FP5 and FP6, the objective for fossil fuels R&D was to comply
with the Kyoto Protocol on the
reduction of greenhouse gases.
o Under FP6 and FP7, the focus was exclusively on
Carbon Capture
and Storage (CCS).
• Explain that Horizon 2020 still has a focus on CCS (and CO2 re-use,
CCU), but also includes R&I on flexible conventional thermal power
plants and unconventional hydrocarbons (in particular shale gas and oil).
• Stress that for unconventional hydrocarbons (UH), we do not support
technology development, but only address the possible environmental
aspects of UH development.
On the role that Galp Energia can play in European collaborative R&I:
• Explain that the Energy Union is a top priority for President Juncker and
that R&I is a crucial dimension of this strategy.
• Define the 4 core priorities - renewables, consumer, energy efficiency,
and transport. On top of these, 2 research priorities - CCS and nuclear –
could be added.
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• Acknowledge that Galp Energia's expertise could contribute to these
priorities, in particular in the field of biofuels and CCS.
• Explore Galp Energia's current interest in R&I in the field of CCS and
renewable energy technologies.
On the new SET Plan:
• Inform Mr. Gomes da Silva that the Integrated SET Plan Communication
was adopted by the College on 15 September. It is the first R&I
deliverable under the Energy Union.
• Inform that ad hoc thematic discussions on the new SET Plan are to be
organised very soon with industry and research stakeholders in order to
develop specific targets and programmes at European and national level.
• Seek Mr. Gomes da Silva's view on how Galp Energia can contribute to
the implementation of the new SET Plan, both in terms of sustainability
and of boosting innovation.
• Inform that the new Integrated SET-Plan will be presented next week in
Luxembourg in a conference, and invite Galp Energia to take part in the
debate and provide critical and constructive comments.
On KIC Innoenergy:
• Acknowledge that KIC InnoEnergy can contribute in the advancement of
the SET Plan through services which support the uptake of new solutions
and enable further investments in the sector, and education and training.
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• Acknowledge that KIC InnoEnergy plays an important role by selecting
promising scientific developments from the research community and
channelling them to industrial players, thus facilitating their market
uptake.
• Highlight that in the new SET Plan Communication, we go a step further,
proposing a closer engagement of KIC InnoEnergy with the SET Plan
Community, to identify innovative projects and bring them to the
attention of investors or companies that can turn these innovations into
successful businesses.
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3. DEFENSIVE POINTS
Horizon 2020 does not support any activities in oil and gas, but we will use these energy
sources for decades to come. Will this be considered in future calls?
EU funded research in the field of oil and gas was supported in earlier Framework Programmes, when
energy security of supply after the oil crisis was a key political priority. In FP5, as environmental
stewardship became more and more important as a driver for energy research, our activities in oil and
gas were limited to technologies to reduce the environmental impact of oil and gas development. In
FP6, oil and gas R&D was excluded completely, and both FP6 and FP7 focused on CCS instead.
Horizon 2020 includes again a link to fossil fuel exploration and production, but only in the sense that
the environmental aspects of unconventional hydrocarbons (mainly shale gas and shale oil) can now
be addressed; For anything else, we do not have a mandate from either the European parliament or
other Commission services (in particular DG ENER, ENV and CLIMA).
Since the oil and gas industry is a mature industry with a lot of revenues, the actual technology
development (bot for conventional and unconventional hydrocarbons) is left to the industry.
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4. CURRICULUM VITAE
Carlos Gomes da Silva
Chief executive officer (CEO)
Carlos Gomes da Silva is a professional with 27 years of experience in different industries, in
particular oil & gas, energy and beverages. Carlos Gomes holds a Degree in Electrical
Engineering and Computer Science by FEUP at the Oporto University and an MBA by
ESADE / IEP (Barcelona). With more than 20 years in the oil & gas industry, he joined Galp
Energia / Petrogal early in the 90’s, where he played several managerial roles leading refining
operations, supply and trading, planning & control and strategy. From 2001 and during 6
years he served in the beverages industry (at Unicer, a Carlsberg Group company) as Head of
M&A and Strategy and subsequently as Chief Operating Officer (for the supply chain, retail
and human resources). He returned to the Oil & Gas industry in 2007 to serve as Board
Member in Galp Energia, undertaking several executive roles since 2008 as Chief Operating
Officer, namely for Marketing Oil, Gas & Power, Trading Oil & Gas and corporate divisions
(Procurement, Marketing, Human Resources, Legal, Corporate Governance and Compliance).
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5. BACKGROUND INFORMATION
5.1 Galp Energia's activities in energy
Galp Energia is present throughout the entire
biofuels value chain, operating both in upstream
and downstream biofuel activities.
At the upstream level, the Company has a palm oil plantation project in Brazil, and should
start producing from 2017 onwards. At the downstream level, there is a unit producing
second-generation biofuel in Portugal, with an installed capacity of 27 mton of biofuel per
year, dedicated to transforming waste oils and waste animal fats into biodiesel. In addition,
engineering and logistics studies are being carried out to build production plants for
hydrotreated vegetable oil (HVO).
With regard to
wind power generation, Galp Energia currently has an operational wind farm
with an installed capacity of 12 MW, which produced 36 GWh in 2014. Four additional wind
farms are also under construction and will have an installed capacity of 171.6 MW.
With regard to
solar power generation, Galp Energia is developing several projects in
Portugal to promote greater energy efficiency with its clients and business partners.
5.2 KIC InnoEnergy
KIC InnoEnergy was established under the EIT in 2009 as the Knowledge and Innovation
Community in the field of energy. It is run as a commercial company, incorporated as
Societas Europea with headquarters in the Netherlands, with 27 shareholders and additional
200 partners - companies, research institutes, universities and business schools covering the
whole energy mix. KIC InnoEnergy's partners are organised around six regional units, the Co-
Location Centres.
Galp Energia is member of the Spanish center of operations, known as Co-Location Center
Iberia, which is based in Barcelona. The Center brings together Spanish and Portuguese
partners and coordinates all the InnoEnergy projects that focus on renewable energies (wind,
solar photovoltaic, solar thermal, and marine energy). It also coordinates a large-scale project
on industrial energy efficiency.
KIC InnoEnergy refers strongly to the
SET Plan as its overarching strategy. It has been
involved through its experts in the development of a number of activities under the SET Plan:
a) SET Plan Education and Training Roadmap
KIC InnoEnergy was part of the core group that contributed to the development of the SET
Plan Education and Training Roadmap document in 2012-2013.
b) Implementation strategy for the Materials Roadmap Enabling Low-Carbon Energy
Technologies (SET Plan)
KIC InnoEnergy contributed to the development of a Strategy Paper identifying the best
options to implement the SET Plan Materials Roadmap.
c) SET Plan Integrated Roadmap
KIC InnoEnergy contributed to the development of the strategic document 'Towards an
Integrated Roadmap1.
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d) Inducement Prizes for Energy
KIC InnoEnergy contributes to the development and implementation of the Inducement Prizes
for Energy under Horizon 2020.
5.3 Galp Energia's innovation, research and technological development activities
•
What Galp has already done:
Created innovative projects for Galp Energia, for their clients and with their other business
partners: refining (Ginseng project); E&P (seismic imaging); clients (SMART Galp); other
business partners (COMET programme).
Established R&D partnerships with the technological and scientific community: creating the
Institute of Oil and Gas (ISPG); Doctorate and Master’s in Oil Engineering (ISPG & UHW);
Galp 20-20-20; Fuels R&D Unit (partnership with the University of Coimbra); EngIQ
business doctorate programme; Galp Innovation network.
•
What Galp plans to do (2015-2020):
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6. FACTS AND FIGURES
6.1 Galp Energia's participation in FP7 and Horizon 2020
Galp Energia participated in COMET, an FP7 project aimed at identifying a CO2 transport
and storage infrastructure serving the West Mediterranean area, namely Portugal, Spain and
Morocco
6.2 Galp Energia facts and figure
See Company Profile in Annex
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7. SOCIAL MEDIA
Galp Energia is present in the following social media:
TWITTER: https://twitter.com/galpenergia
Only one tweet from 2009.
LINKEDIN: https://www.linkedin.com/company/galp-energia
Company information, achievements and recruitment opportunities in English and
Portuguese.
FACEBOOK: https://www.facebook.com/galp-energia-243723985665494/timeline/
Facebook page with a focus on the Galp racing team, with lots if pictures but very little
information.
YOUTUBE: https://www.youtube.com/user/COSTOffice
The Galp Youtube site is well populated with short videos on exploration & production,
corporate profile and on natural gas & electricity for consumers.
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8. Annex:
Company Profile (PDF)
Galp Energia is an energy company – their activities span from exploration and production of oil and natural gas
to refining and marketing oil products, natural gas marketing and sales and power generation.
Market capitalisation: €6,991 million
Turnover:
€17,904 million
Net profit RCA:
€373 million
Number of employees: 6,855
Active presence in:
14 countries
Reserves 3P:
833 mmboe
Average working
30.5 kboepd
interest production: Refineries:
2
Service stations:
1,449
Sales of natural gas:
7,472 mm³
data from the end of 2014
Business segments
> Around 45 projects in portfolio
> 1,449 service stations
> 7,472 mm³ sales of natural gas
Galp Energia's activity is growing
The main activities of this business
We process oil into refined oil
fast, especially in Brazil, Angola and
segment are import, distribution and
products, mainly marketed by our
Mozambique with the recent
sale of natural gas and production of
own network in Portugal and Spain;
discoveries;
electricity;
Production of oil is concentrated in
Natural gas is sold in Portugal and
Angola and in Brazil, with a WI
We are the only refining company in
Spain to around 1.3 million
production of 30.5 kboepd in 2014;
Portugal, and we currently have a
customers;
refining capacity of 330 kbopd;
At the end of 2014, 3P
We plan to exploit current
Refined products are primarily
reserves NE stood at 833 mmboe;
developments in our power business
marketed in the Iberian Peninsula but
3C contingent resources WI at 3,496
to increase our sales of natural gas;
also in Africa, with sales to direct
mmboe and exploration resources
clients hitting 9 mton in 2014;
(unrisked) at 1,605 mmboe;
In the power business, our aim is to
The development of existing
In 2014, the marketing network
position ourselves in the electricity
resources, will allow Galp Energia to
reached 1,449 service stations.
supply sector in the Portuguese
significantly increase its production.
market.
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