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Harvard Case - Total's Carbon Capture and Storage Project at LACQ (A): Risk Opportunity in Public Engagement

"Total's Carbon Capture and Storage Project at LACQ (A): Risk Opportunity in Public Engagement" Harvard business case study is written by Devin McDaniels, Frances Bowen. It deals with the challenges in the field of Operations Management. The case study is 14 page(s) long and it was first published on : Oct 24, 2011

At Fern Fort University, we recommend Total implement a comprehensive public engagement strategy for their Carbon Capture and Storage (CCS) project at LACQ. This strategy should prioritize transparency, education, and active stakeholder involvement to mitigate potential risks and build public support for this innovative technology.

2. Background

This case study focuses on Total's CCS project at LACQ, France, a pioneering initiative to capture and store CO2 emissions from natural gas production. While the project holds significant potential for reducing greenhouse gas emissions and contributing to a sustainable energy future, it faces significant public concerns regarding safety, environmental impact, and long-term storage.

The main protagonists are Total, the company leading the project, and the local community of LACQ, whose opinions and concerns are crucial for the project's success.

3. Analysis of the Case Study

The case study highlights several key challenges:

  • Public Perception and Trust: The public is generally skeptical of CCS technology, citing concerns about potential leaks, long-term storage risks, and the possibility of unintended environmental consequences.
  • Lack of Awareness and Education: Many individuals lack a clear understanding of CCS technology, its benefits, and the rigorous safety standards employed.
  • Communication Gaps: Total's communication efforts have been perceived as insufficient, leading to misunderstandings and distrust among local residents.

To analyze the situation effectively, we can utilize the Stakeholder Analysis Framework. This framework helps identify key stakeholders, their interests, and their potential influence on the project.

Stakeholders:

  • Local Community: Residents of LACQ, concerned about potential environmental impacts and safety.
  • Environmental NGOs: Advocate for environmental protection and may have concerns about CCS technology.
  • Government Agencies: Responsible for regulating the project and ensuring its safety and environmental compliance.
  • Industry Partners: Collaborate with Total on the project, potentially influencing its direction and implementation.
  • Investors: Interested in the project's financial viability and long-term sustainability.

Interests:

  • Local Community: Health and safety, environmental protection, economic benefits, and transparency.
  • Environmental NGOs: Environmental protection, sustainable development, and transparency.
  • Government Agencies: Safety, environmental compliance, and public well-being.
  • Industry Partners: Project success, technological advancements, and market share.
  • Investors: Financial returns, long-term sustainability, and responsible investment.

Influence:

  • Local Community: High influence through public opinion, local activism, and potential legal challenges.
  • Environmental NGOs: Significant influence through public awareness campaigns, lobbying efforts, and legal challenges.
  • Government Agencies: High influence through regulatory oversight and permitting processes.
  • Industry Partners: Moderate influence through collaboration and shared interests.
  • Investors: Significant influence through investment decisions and market pressure.

4. Recommendations

To address the challenges and build public support for the LACQ CCS project, Total should implement the following recommendations:

1. Develop a Comprehensive Public Engagement Strategy:

  • Transparency and Open Communication: Establish a transparent communication platform, actively engaging with stakeholders through public meetings, town halls, and online forums.
  • Education and Outreach: Develop educational materials and programs to explain CCS technology, its benefits, and the rigorous safety measures in place.
  • Stakeholder Engagement: Actively involve local communities, environmental NGOs, and government agencies in the project's development and implementation.
  • Community Partnerships: Establish partnerships with local organizations and initiatives to build trust and demonstrate commitment to the community.

2. Enhance Project Management and Risk Mitigation:

  • Rigorous Safety Standards: Implement and maintain the highest safety standards throughout the project lifecycle.
  • Environmental Monitoring and Mitigation: Develop comprehensive environmental monitoring programs and implement mitigation measures to address potential impacts.
  • Long-Term Storage Security: Invest in research and development to ensure the long-term safety and stability of CO2 storage.
  • Contingency Planning: Develop robust contingency plans to address potential risks and emergencies.

3. Leverage Technology and Analytics:

  • Data Transparency and Visualization: Use data visualization tools to communicate project progress, environmental data, and safety information in a clear and accessible manner.
  • Social Media Engagement: Utilize social media platforms to engage with stakeholders, address concerns, and share project updates.
  • Online Q&A Forums: Establish online forums for stakeholders to ask questions, share concerns, and receive timely responses.

4. Foster a Culture of Sustainability and Innovation:

  • Employee Engagement: Educate employees about the project's importance and encourage their active participation in public engagement efforts.
  • Community Involvement: Support local initiatives promoting environmental sustainability and community development.
  • Innovation and Research: Invest in research and development to improve CCS technology and address emerging challenges.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: Total's commitment to sustainable energy solutions aligns with the CCS project's goals.
  • External Customers and Internal Clients: The project's success depends on public acceptance and support, making stakeholder engagement crucial.
  • Competitors: Total's leadership in CCS technology can be strengthened by building public trust and demonstrating the project's viability.
  • Attractiveness ' Quantitative Measures: The project's potential for reducing greenhouse gas emissions and creating economic opportunities is attractive, but it requires public acceptance for long-term success.

6. Conclusion

Total's CCS project at LACQ has the potential to make a significant contribution to reducing greenhouse gas emissions and advancing sustainable energy. However, the project's success hinges on building public trust and addressing concerns. By implementing a comprehensive public engagement strategy, enhancing project management, leveraging technology, and fostering a culture of sustainability, Total can navigate the challenges and secure public support for this innovative technology.

7. Discussion

Other alternatives include:

  • Delaying the project: This would allow for further research, development, and public education, but could also risk losing momentum and competitive advantage.
  • Focusing solely on technical aspects: This approach could alienate stakeholders and lead to increased resistance and legal challenges.

Key risks and assumptions:

  • Public opinion may not change significantly: Despite efforts, public skepticism may persist, requiring ongoing engagement and adaptation.
  • Technological advancements may not occur as expected: Unforeseen challenges could arise, requiring flexibility and adaptation in project implementation.
  • Regulatory changes could impact the project's viability: Changes in environmental regulations could necessitate modifications to the project design or operations.

8. Next Steps

  • Develop a detailed public engagement plan: Outline specific activities, timelines, and resources for each stakeholder group.
  • Establish a dedicated team: Assign personnel responsible for public engagement, communication, and stakeholder management.
  • Conduct pilot programs: Test communication materials and engagement strategies with focus groups and key stakeholders.
  • Regularly monitor and evaluate progress: Track public perception, address concerns, and adapt strategies based on feedback.

By taking these steps, Total can build a strong foundation for public support and ensure the long-term success of its CCS project at LACQ, contributing to a more sustainable future.

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Case Description

This case series outlines the strategic choices facing Jean-Michel Gires, Total E&P France's (TEPF) VP sustainable development, in designing and implementing a community engagement strategy. Case A begins with the approval of a pilot Carbon Capture and Storage (CCS) system at TEPF's Lacq facility in France, and outlines the strategic context for the community engagement process. Case B is positioned three years later as the CCS plant comes online, and Gires looks back at the successes and failures of the completed community engagement strategy. The case includes a range of issues impacting the decision-making context, including: the role of CCS in mitigating climate change; an outline of CCS technology; TEPF's climate change strategy; the history of TEPF's operations in the Lacq gasfield, and interactions with local communities; the E.U. climate change regulatory environment (including carbon pricing and CCS) and CCS regulatory uncertainty in France.

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