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Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 1 of 80
Bioenergy & Biobased Opportunities in Ukraine,
June 2013
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 2 of 80
Introduction 4
Summary 5
1 General overview of the branch 7
1.1 Biomass feedstock and its energy potential 7
1.2 Biomass processing 15
1.3 Production analysis and key players by sub-sectors 21
1.3.1 Heat on biomass 21
1.3.2 Biogas, Heat and electricity on biogas 22
1.3.3 Solid biofuels 23
1.3.4 Bioethanol 25
1.3.5 Biodiesel 26
1.3.6 Bio-fertilizers 27
1.3.7 Biobased polymers 28
1.4 Sales system 28
1.5 Price survey 29
1.6 Foreign trade 33
2 Trends, drivers and barriers to sector development 39
2.1 Main trends 39
2.2 Main drivers 39
2.3 Major barriers 40
3 Branch regulation 42
3.1 Branch structure 42
3.2 State programs 43
3.3 Associations 44
3.4 Events and exhibitions 44
3.5 Legislation 45
3.6 Taxation 48
4 Standardization and certification 51
4.1 National standards 51
4.2 International standards 52
5 Investments in the sector 53
6 Financing the sector 53
7 Technology and equipment 54
Table of contents Page
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 3 of 80
8 SWOT analysis 57
9 Opportunities for Dutch SMEs 59
Annex 1 Sector associations 61
Annex 2 Sector events and exhibitions 65
Annex 3 Major market participants 69
Table A. Largest boilers on solid biomass in Ukraine 69
Table B. Largest biomass and biogas processing companies for power generation 70
Table C. Largest producers of solid biomass products 72
Table D. Producers of bioethanol and biofuels with bioethanol additives 74
Table E. Largest producers of biodiesel 76
Table F. Announced investments in the sector 77
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 4 of 80
Introduction
This report contains the results of a study done on the Ukrainian biomass processing industry carried out by
Tebodin Ukraine. The study was carried out on the request of the Ministry of Economic Affairs, Agriculture and
Innovations of the Netherlands.
The point of interest of the report is focused on processing of agricultural, agro industrial and wood wastes into
the non-food biomass products - biogas, bioelectricity, solid and liquid biofuels, bio fertilizers and bio polymers.
The main objectives of the market study are:
to provide the latest information on the biomass sector of the food market of Ukraine;
to describe major trends and problems of the biomass sector;
to indicate business opportunities for Dutch companies in Ukraine.
The overall aim of this market study is to study the market opportunities and strengthen the position of Dutch
companies in the biomass processing sector in Ukraine.
The main focus of the market study was put on the following biomass feedstock:
Straw of cereals and other crop waste;
Animal wastes;
Agro industrial wastes;
Sunflower husk;
Wood waste.
The main Dutch-end target groups for whom the research is addressed are:
Exporters of equipment
Exporters of knowledge and services (certification)
Exporters of processed goods (top price segment)
Investors
For this market study alternative sources of information were used such as information from the State Statistics
Committee of Ukraine, the Ministry of Agrarian Policy, the State Customs Committee of Ukraine, State Agency of
Forest Resources of Ukraine and other Ukrainian and international organizations.
During the sectors research, the branch authorities and companies operating in the market were contacted
directly and interviewed. Their opinions are also accounted in the report.
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 5 of 80
Summary
Biomass refers to one of the most perspective renewable energy sources (RES) coming from carbon containing
organic materials of plant or animal origin (wood, agricultural residues, manure, specially grown energy crops,
organic portion of solid waste and sometimes peat).
Using various transformation processes such as combustion, gasification, pyrolysis the biomass is either
transformed into biofuels, bio heat, bioelectricity, animal feed, bio fertilizers and bio chemicals.
Ukraine has a good chances and enough potential for dynamic development of bioenergy.
Annually in Ukraine is produced 110 -120 million tons of biomass feedstock (straw of cereals and other crop
waste, animal and agro-industrial wastes). Of the total amount about 54% are further processed, 45% are wasted
and only about 1% are used for electricity and heat production.
The economic potential of primary agricultural residues per year is estimated at the equivalent of 14-20 million
tons of conventional energy per year. Overall biomass potential of Ukraine is estimated to 15-20% of primary
energy consumption.
Currently, a small portion of the existing potential is realized into practice. In 2011 Ukraine consumed 1.3 million
tons of conventional energy from biomass which is 0.7% of the total consumption of primary fuel. The biggest
share (about 50%) of the biomass consumption is covered by agricultural residues (mainly sunflower husk) and
wood waste.
Such a gap between the potential and actual biomass processing to energy is explained by the range of
problems. The most critical of them are: unregulated procedure of tariff formation and cross-subsidizing of prices
for heat and electricity, lack of modern technologies and difficulties with financing.
Straw of cereals and other crop waste (about 26 million tons):
is used as fuel in small straw-fired boilers and in straw-fired district heating plant;
processing into briquettes and pellets is at the early stage of development;
biodegradable polymers from vegetarian materials containing cellulose or starch (corn, sugar beets,
potatoes) and waste of crop processing plants are not produced.
Animal wastes (about 28 million tons):
Currently only 10 biogas installations are operational in Ukraine. They are mostly used for production of
heat for own needs (without electricity).
The resulting sludge (of manure) at the end of the digestion process being a fertilizer – is not commonly
used.
Agro industrial wastes (about 15.6 million tons):
Wastes of milk and meat processing suitable to produce biogas are practically not used.
About 5 Ukrainian state-owned companies and 2 private plants produce bioethanol from waste of alcohol
and sugar production.
Some breweries use the waste products of yeast production for biogas production for own heating.
Sunflower husk (about 10 million tons):
is widely used (almost 70% )for production of pellets and briquettes;
as by-product for seed oil production is used at plant’s boilers; about 50% still are available for sale;
there are only few examples in other industries to burn of sunflower husk together with traditional fuel for
heat and power production;
husk gasification – currently is not used.
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 6 of 80
The most widespread use of 2.5 million m3 of wood biomass are:
processing into briquettes and pellets, most of which are exported to EU countries;
direct burning of wood wastes (or as briquettes and pellets) in small capacity pyrolysis boilers, water-
heating and steam boilers for heating. Mainly, these are single units installed at several enterprises of
Ukraine, aiming to save traditional fuel. In addition, small wood burning boilers are sometimes installed
for heating applications in schools, kindergartens, hospitals and other social institutions.
Gasification of wooden waste for producing a combustible gas that could be used alone or as mixture with natural
gas for electricity generation as well as biofuel production from wood biomass – are not developed.
The main drivers of the sector development are considered to be:
Agricultural and agro industrial production become the main ‘currency source’ for the country and will be
developing in the nearest perspective;
Energy dependence on import and constantly growing prices on natural gas force to look for alternative
fuels;
Necessity of upgrading and increasing of energy efficiency of the obsolete heat and power utilities
infrastructure;
EU sustainability and energy saving targets – increasing demand for biofuels from Ukraine;
Favorable taxation and recent legislative initiatives;
‘Green’ tariff for electricity produced from agricultural residues.
Dutch business can serve as a provider of knowledge, technology and equipment supplier for biomass
processing, bioenergy and biofuel industries. Wide opportunities open in biomass/bioenergy assessments and
various consultancies, upgrading of power and heat infrastructure, setting up sustainable biomass production and
processing, international trade with energy crops and solid fuels, development of local biofuels supply/logistics
chains and production, creation of rural biogas and bio-fertilizers productions, matchmaking/co-
financing/partnership.
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 7 of 80
1 General overview of the branch
1.1 Biomass feedstock and its energy potential
Ukraine has large stock of biomass available for energy production.
Main characteristics of the biomass feedstock market:
In 2011 Ukraine produced 1101-120
2 million tons of biomass feedstock (Straw of cereals and other crop
waste, animal and agro-industrial wastes).
Of total amount about 54% are further processed, 45% are wasted and only about 1% are used for
electricity and heat production.
Most extensive biomass resources are crop residues (85.9 million tons) and energy crops (23.2 million
tons) as reported by Biomass Ltd.
Quantities of animal manure, urine, droppings vary according to different sources: from 7.7 million tons
according to data of State statistics office to 28.1 million tons (wet state) according to estimates of
Biomass Ltd.
Ukraine annually produces 9.7-15.6 million tons of agro industrial wastes according to various
assessments.
Low penalties for violation of the environmental legislation do not stimulate the agro industry to treat the
residues (animal offal, manure, slaughterhouse waste, milk whey etc.) in a proper way.
Annual amount of wood biomass constitutes 5.6-6.5 million m3. Of which about 3.5-4.0 million m
3 is used
for heating of individual housing and social objects in rural areas, heat generation for process and
heating needs of woodworking industries. Approximately 2.1-2.5 million m3
of wood waste remain
unused.3
The large amounts of crop and wood residues are rot or combusted in the fields/forests after
harvesting/logging.
Biomass distribution over the different parts of Ukraine is unequal. Each part has its own specific waste
resource:
o The Northern and Western parts of the country have vast and dense flora, such as coniferous
and deciduous woods.
o The Central and Southern parts are characterized by numerous agro-industrial sites and vast
agricultural areas.
o In the Eastern part of Ukraine, the well-developed industrial and agro-industrial sectors are
producing large quantities of secondary biomass (Figure 1).
The economic potential of biomass processing for energy purposes constitutes 25-40 million tons of
conventional energy per year which is 15-20% of primary energy consumption of Ukraine according to
various estimates.
1 Report “Potential of energy production from agricultural wastes”, IFC , 2013
2 According to Biomass ltd. assessments 122.7 million tons of biomass feedstock was produced in 2011 (Table 1). The estimates of
the different organizations and the same organization may vary from year to year. The annual estimate of biomass feedstock and
biomass potential depends on various conditions in certain year: weather, kinds and yields of crops, production volumes, storage
conditions etc. 3 State Agency of Forest Resources of Ukraine, http://ru-bio.ukrbio.com/ru/articles/1893
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 8 of 80
Figure 1. Geography potential of biomass energy in Ukraine (agricultural and wood waste)
Source: Institute for Environment and Energy Conservation (IEEC)
Biomass types as defined by the assignment are used for production of the following final products.
Straw of cereals and other crop waste
The straw is used as fuel in small straw-fired boilers and in straw-fired district heating plant. In Ukraine,
several companies produce boilers and other equipment to burn straw for heat and power generation.
Because of a limited availability of this equipment, very few applications are known, e.g. for heating of
some schools and farms.
Processing into briquettes and pellets is at the early stage of development. Only 5 plants of straw pellets
are operational in Ukraine. Few large scale projects were recently announced by agro industrial
holdings.
From vegetarian materials containing cellulose or starch (corn, sugar beets, potatoes) and waste of crop
processing plants may be produced the biodegradable polymers (bio plastics). So far only one plant in
Ukraine (Kiev Milk Acid Plant) can produce the substance which is used for production of bio plastics.
Almost the entire production of the plant is exported to EU.
Animal wastes
The manure can be used in biogas plants to produce heat and power in small-sized plants for
households, villages or farms. Today only 10 biogas installations are operational in Ukraine. They are
basically used for production of heat without electricity.
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 9 of 80
The resulting sludge (of manure) at the end of the process could be used as fertilizer since the nitrogen
and phosphorous content is not lost.
Agro industrial wastes
At present time, there are just a few factories that use agro industrial biomass and wastes e.g. sunflower
husk as a fuel for direct burning together with natural gas in the industrial furnace.
Wastes of alcohol, sugar, brewery, milk and meat processing is suitable to produce biogas. At present,
only about 10 farms have installed biogas generation capacities. Mainly due to high equipment cost and
unregulated issue of ‘green’ tariff for electricity from biogas, the applications are not very popular in
Ukraine.
Residues of alcohol and sugar production wastes and corn for grain can be used in bioethanol
production. About 5 Ukrainian state-owned companies and 2 private plants produce bioethanol.
Sunflower husk
Direct burning of sunflower husk for heat and power generation in the same working cycle, i.e. in the
sunflower processing factories. An example is oil extraction plant ‘Kirovogradoliya’ (Kernel group) which
constructed a whole industrial combined heat and power (CHP) plant on sunflower husk. It cost the
company USD 24 million. But it was worth it: today, the company saves more than USD 5.5 million
annually. The heat that is released from the burning of raw materials is used for the technological needs
of the enterprise, and the excess of electricity is sold in the energy market with a high ‘green’ tariff rate.
In other industries using different types of furnaces, it is also possible to have provisions for a direct
burning of sunflower husk together with traditional fuel for heat and power production. This practice can
help saving expenses of traditional fuels, such as natural gas, oil, etc. Such project had been realized at
Vatutinskyi plant of refractory products in Cherkassy region. The plant consumes sunflower husk
products of Nikolayev biofuel plant. After the project it has been possible to achieve nearly 50%
economy of natural gas.
Sunflower husk possesses favorable properties to undergo gasification, the process that yields a
producer of gas with a good quality to be used in combustion boilers or in power generation turbines.
Gasification appears to be a better option than combustion in terms of energy efficiency.
Sunflower husk is widely used for production of pellets and briquettes. Almost 70% of totally produced
husk is processed for solid biofuel.
Wood waste
The most widespread use of wood biomass is its processing into briquettes and pellets, most of which
are exported to European countries.
Direct burning of wood wastes (or as briquettes and pellets) in small capacity pyrolysis boilers, water-
heating and steam boilers for heating. Mainly, these are single units installed at several enterprises of
Ukraine, aiming to save traditional fuel. In addition, small wood burning boilers are sometimes installed
for heating applications in schools, kindergartens, hospitals and other social institutions.
Burning of wood waste in furnaces and combustion chambers, directly in factories and enterprises of
woodworking and chemical industry for heating.
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 10 of 80
Gasification of wooden waste for producing a combustible gas that could be used alone or as mixture
with natural gas for electricity generation. The energy produced can be sold to wood-fired district heating
plants or combined heat and power (CHP) plants.
The cellulosic content of wood biomass and wood industry wastes can be extracted and converted into
liquid biofuel (bioethanol), while the remaining waste (lignin) can be subsequently processed for
electricity generation.
The main components of the energy potential are primary agricultural wastes for burning and pelletizing, energy
crops for biodiesel production, secondary agricultural residues and wood waste for burning and pellets
production, animal wastes for biogas production and for replacement of fossil fuels in power generation (Table 1).
Table 1. Energy potential of biomass in Ukraine, 2011
Type of biomass Production,
mln tons
(wet state)
Share of total
production, %
Potential of energy
production, mtce
Share of total
potential
energy production,
%
Primary agricultural waste (crops residues), including:
85.9 - 18.27 -
- Stems of corn for grain 34 28% 8.59 22%
- Straw of cereal crops 32 26% 3.17 8%
- Stems of sunflower 17 14% 5.55 15%
- Straw of rape 2.9 2% 0.96 3%
Energy crops (poplar, miscanthus, acacia, willow,
rapeseed)
23.2 19% 13.3 35%
Secondary agricultural waste
(sunflower husk, sugar bagasse)
9.7 8% 0.99 3%
Wood waste 3.9 3% 1.87 5%
Bioethanol - - 2.36 6%
Peat - - 0.4 1%
Biodiesel - - 0.35 1%
Biogas from manure - - 0.35 1%
Landfill gas - - 0.26 1%
Sewage gas - - 0.09 0.2%
Total 122.7 100% 38.24 100%
Source: Scientific Engineering Centre ‘Biomass’ Ltd.
1.1.1 Crops residues
Ukraine enjoys an advantageous position for cultivation of cereals (wheat, oats, barley, etc.) producing huge
quantities of straw. Nearly 60% of the Ukrainian territory is under agro-industrial use. Each of Ukrainian regions
generates considerable amounts of crop residues.
In 2011 Ukraine produced 85.9 million tons (wet state) of crop residues including:
Stems of corn for grain - 34 million tons
Straw of cereal crops – 32 million tons
Stems of sunflower – 17 million tons
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 11 of 80
Straw of rape - 2.9 million tons
Facts about crop residues usage in Ukraine:
The straw of cereal crops is used for about 80% as soil fertilizers, animal feed and bedding. The
remaining 20% is usually lost in the field.
The sunflower as a plant is used for 40-50% for oil extraction, for 10% on sunflower husk palletizing.
Remaining 50-60% of the plant in the form of stems and leaves is not utilized.
Despite this significant potential, today, only a small share of the available feedstock is used for energy
production, mainly by mean of direct burning.
About 20 straw fired boilers (mostly below 1 MW) are installed for heating in rural areas and about 5 companies
are producing fuel pellets from straw.
The utilization of crop residues is hindered by significant collection cost, and the fact that most of agricultural
enterprises lack possibilities to invest into collection, bundling and adequate storing of the wastes.
1.1.2 Animal wastes
According to State statistics in 2011 the farms produced 7.7 million tons of manure, droppings, urine4. Larger
quantities (up to 28.1 million tons) of animal wastes are available in Ukraine according to the estimates of
Biomass Ltd (Table 2).
Table 2. Potential of biogas production from animal wastes, 2010
Type of enterprise Type of waste Content of dry
substances
Number of
enterprises, units
Total wastes (wet
state), million
tons/year
Potential biogas
production,
million m³/year
Cattle farms manure 10-12% 5,734 20.5 719
Pig farms manure 7-10% 6,515 4.7 180
Poultry farms droppings 25-30% 861 2.9 326
Total - - 13,110 28.1 1,225
Sources: Scientific Engineering Centre ‘Biomass’ Ltd.
Facts about animal wastes treatment/usage in Ukraine:
The animal wastes are first separated into the liquid and solid fractions. At best case, the liquid fraction
(or waste water) is chemically cleaned and discharged into the sewage system or water body. At worst
case, the waste water without any treatment is supplied to filtrating fields. The solid fractions are dumped
nearby the farm and used as fertilizers of poor quality.
Low penalties for pollution of lands with animal wastes do not stimulate the livestock producers to
recycle such waste in a proper way.
The animal wastes could be successfully used for production of biogas and bio-fertilizers. According to
calculations of market experts the animal manure available in Ukraine is enough for construction of about 4,000
biogas plants. Instead of that, about 10 biogas plants were operational in 2011. All they belong to the large
agricultural farms and produce in total 4 MW.
Because of the lack of acting ‘green’ tariff on electricity produced from biogas, the farms mainly use biogas for
own heating and transportation needs often without generating electric energy out of it.
4 In a wet state
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 12 of 80
Figure 2. Gas output from various types of substrates, m3/t
Source: Data of market operators
1.1.3 Agro industrial wastes
The potential of agro industrial (secondary agricultural) wastes processing into the energy is not as high as of
primary agricultural wastes, however it still constitutes 0.99 million tons of conventional energy production per
year.
According to different estimates during the last few years Ukraine produced annually from 9.7 to 15.6 million tons
of agro industrial wastes (Tables 1 and 3).
Main suppliers of agro industrial wastes in Ukraine are oil extraction, sugar plants, distilleries and brewery plants.
Table 3. Potential of biogas production on agro industrial plants of Ukraine, 2010
Type of enterprise Type of waste Content of dry
substances
Number of
enterprises
Total wastes (wet
state), million
tons/year
Potential biogas
production,
million m³/year
Brewery plants grains 20-25% 50 1.4 171
Sugar plants beet pulp 10-12% 184 6.5 216
Distilleries grains 6-8% 82 4.5 180
Milk processing waste water 1-6 g/l 300 0.9 90
Cheese production milk whey 6-7% 2.5
Total 616 15.6 657
Sources: Scientific Engineering Centre ‘Biomass’ Ltd.
Oil extraction
Oil extraction companies install granulators for processing of sunflower husk into solid biofuels. Of 1 million tons
of sunflower husk annually produced at oil extraction plants about 700,000 tons is palletized.
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 13 of 80
The pellets are burned at the plants for production of steam, heat and combined heat and power. The surplus of
solid fuel is exported to EU countries.
Figure 3. Consumption of sunflower husk for production of energy in different regions of Ukraine, 2010
Source: Institute of Engineering Thermo Physics, NAS of Ukraine, Scientific Engineering Centre ‘Biomass’ Ltd.
Sugar plants and distilleries
The wastes of sugar plants and distilleries are not practically processed for energy.
At the level of Cabinet of Ministers the arrangement of bio ethanol production at the facilities of State distilleries
and old sugar plants is discussed. The main barrier for implementation of the idea is the lack of financing for
purchase of specialized equipment.
Livestock production and slaughterhouses
To improve incineration and recycling of agro industrial wastes and to increase production of animal feed
ingredients (meat meal, bone meal, blood meal, fish meal, feather meal, fat, etc.) the State Concern
‘Ukrvetsanzavod’ composed of 23 plants was founded by the decision of the Cabinet of Ministers of Ukraine.
The technologies and equipment at the Concern are outdated and only few of them are operational. The agro
industrial wastes are burned in old boilers and produce insignificant quantities of low quality feed ingredients.
1.1.4 Wood wastes
Wood stock of Ukraine is estimated at 1.8 billion m3. In 2011 Ukraine harvested 17.5 million m
3 of wood.
3.5-4.0 million m3 of wood biomass is annually used for heating of individual housing and social objects in rural
areas, heat generation for process and heating needs of woodworking enterprises, production of heat and
electricity at heat stations and municipal boilers, production of briquettes and pellets, charcoal, gas syntheses5.
Facts about Ukrainian forestry:
5 State Agency of Forest Resources of Ukraine, http://ru-bio.ukrbio.com/ru/articles/1893
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 14 of 80
Ukraine is characterized by relatively low level (15.9%) of forest coverage.
High percentage of protection forest which has a trend of increase.
Considerable forest area is increasing in the zones of radiation pollution.
Half of Ukrainian forests are artificially planted and needs intensive care.
Forest locations in Ukraine are irregular. They are concentrated mainly in Polissia steppes and in the
Ukrainian Carpathians.
Key harvested tree species are pine, spruce, birch and alder.
Table 4. Wood biomass resources in Ukraine
Years Reforestation,
thousand ha
Wood procurement,
thousand m3
Firewood for heating, thousand m
3
Wood felling wastes,
thousand m3
1990 37.5 12,642.00 2,804.0 1,264.20
2000 37.8 11,261.70 2,573.0 1,126.20
2005 58.6 17,124.30 2,650.6 1,712.40
2006 66.7 17,759.80 2,674.3 1,776.00
2007 73.6 19,013.90 2,511.8 1,901.40
2008 80.2 17,687.50 2,654.5 1,768.80
2009 80.9 15,876.50 4,219.0 1,587.70
2010 70.1 16,145.60 4,102.0 1,614.60
2011* 72.4 17,510.00 4,200.0 1,720.00
* Preliminary data
Source: Institute of Renewable Energy of National Academy of Science of Ukraine, State Statistics Committee of Ukraine
Annual quantity of unused wood wastes according to estimates of State Agency of Forest Resources of Ukraine
constitutes 2.1-2.5 million m3 of which:
1.7-2.0 million m3 of primary wood wastes produced in the process of logging and felling
0.4-0.5 million m3 of secondary wood wastes produced at woodworking enterprises
Primary wood waste
The primary wood wastes are practically not used in Ukraine. They are burnt or rot in the felling. Minor quantities
are used for direct burning and less for pellets production.
The use of wood wastes for energy purposes is hindered mostly by the lack of a developed network of quality
forest roads and specialized logging and timber transportation equipment.
The timber is usually skidded to a distance of 2-3 km, during which significant contamination of wood and lumber
waste take place. This substantially impairs the use of waste for the production of quality fuel pellets.
The issue of contaminated wood could be solved with previous barking and washing of wood materials but this
equipment is quite expensive for majority of sawmills in Ukraine.
Secondary wood wastes
Till recently the woodworking industries didn’t use the secondary wood wastes at all which was explained by the
low price of natural gas.
As of today, the situation significantly changed and many wood working companies have instilled the boilers on
wood wastes.
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 15 of 80
About 500 modern wood fired boilers have been installed, and over 1,000 old boilers were converted from coal
and oil to wood biomass.
However, still the significant amount of secondary wastes (about 0.4-0.5 million m3) are dumped, burnt or utilized
in vain.
Table 5. Types of wood materials used for production of energy, 2010
Supply of wood energy Annual consumption, %
Firewood 74.8
Chip 9.2
Sawdust 7.8
Lump waste 5.9
Bark 2.3
Biofuel briquettes and pellets Less 0.02
Char Less 0.01
Total 100
Source: Equipment and instruments for professionals. Wood processing
1.2 Biomass processing
The share of natural gas in Ukraine is unreasonably high (about 43%) which is almost 2 times as higher than, for
example, in the EU. At that the contribution of renewable energy sources is unduly low – 1.6%, which is 6 times
as less than in the EU.
Table 6. Structure of primary energy consumption in the world, %
Energy carriers 2010 2030
World Ukraine EU USA Ukraine* EU
Natural gas 20.9 42.6 25.1 25.2 28 24
Oil 32.9 10.0 35.1 36.1 14.5 33
Coal 27.1 27.9 15.9 23.0 30 7
Uranium 5.8 17.9 13.5 9.8 22.5 11
RES 13.1 1.6 9.8 5.6 5.7 25
Source: State Statistics Service of Ukraine, http://www.uabio.org/img/files/docs/position-paper-uabio-1-en.pdf
Figure 2. Structure of primary energy consumption in Ukraine 2010, %
Source: State Statistics Service of Ukraine, http://www.uabio.org/img/files/docs/position-paper-uabio-1-en.pdf
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
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Date: 10 May 2013
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In 2010 the share of biomass in the total consumption of primary energy of Ukraine was 0.6%, in 2011 – 0.7%.
For comparison, the indicator in the EU is on average 6.2%, and in some countries: Latvia - 24.4%, Sweden -
21%, Finland - 20.7%, Austria - 15.5%, Denmark - 14.5%6 (Figure 3).
Figure 3. Share of biomass in the gross internal energy consumption in EU and Ukraine, 2011, %
Source: http://ua-energy.org/post/18030
The large share in the biomass consumption for energy production is represented by sunflower husks used for
heating and solid fuels production (35%), firewood used for heating by population (29.2%) and wood waste used
for heat and power and solid fuels production (20.2%) (Table 7).
Table 7. Consumption of biomass for energy production in Ukraine (2010)
Biomass type Consumption* % of the total
natural units ktce
Straw 50 thousand tons 24 1.9
Wood waste 957 thousand tons 261 20.2
Firewood (population) 1,972 thousand solid m3
377 29.2
Sunflower husks 884 thousand tons 452 35.0
Peat 339 thousand tons 156 12.1
Biogas (manure) 4,516 thousand m3 3 0.2
Landfill gas 26,192 thousand m3 18 1.4
Total 1,291* 100
*1.29 mtce make up about 0.7% of the total energy consumption in Ukraine.
Source: http://www.uabio.org/img/files/docs/position-paper-uabio-1-en.pdf
1.2.1 Heat on biomass
Biomass is used for heating of private houses and in boilers of wood processing and agricultural enterprises.
Interest is constantly growing to installation of boilers on biomass in small district heating systems, heat and
power plants, for heating of social, public and private buildings in rural areas.
6 http://ua-energy.org/post/18030
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Domestic consumption is limited by:
Most of the heat generating facilities are currently owned by the state, the regions or the municipalities
which complicates access to investments;
Low prices for heating;
Lack of information about advantages and executed projects (best practice examples) of heating on
biomass vise fossil fuel;
Lack of finances for purchasing and installation of the new equipment (boilers, generators);
Necessity of biomass procurement / storage technologies and equipment.
1.2.2 Biogas, Heat and electricity on biogas
The main consumers of biogas and heat and power derived from it are the large agricultural farms and agro
industrial companies (oil extraction). The companies mainly use biogas for their own transportation and heating
needs, often without making of it the electric energy.
Domestic consumption is limited by:
Most of the heat and power facilities are currently owned by the state, the regions or the municipalities;
Heat and electrical energy prices are not linked to market dynamics and are perceived by public
authorities as social service;
Low fines for violations of environmental legislation for pollution of the territories with wastes;
Not yet in force a law on the ‘green’ tariff for electricity from biogas and biomass and for co-firing of
biomass with fossil fuels;
High investments into biogas processing equipment;
Problem of selling of electricity to State electricity networks.
1.2.3 Solid biofuels
Domestic market of solid biofuel is developing quite rapidly with an average annual growth rate of 30%.
Figure 4. Domestic consumption of solid biofuels in Ukraine
Source: Fuel Alternative, data of market operators
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The share of domestic consumption of biomass is progressing. In 2008 the share of the domestic market of solid
fuels produced in Ukraine accounted for 3%, in 2009 - 9%, in 2010 –13%, and in 2011 – already 15% (Figure 5).
Figure 5. Share of domestic consumption of solid bio fuel in Ukraine, %
Source: Fuel Alternative, data of market operators
The main consumers of solid biofuels in the domestic market are private households (60% of local consumption),
industrial plants (30%) and reconstructed municipal boilers (10%)7 (Figure 9).
The market share of the reconstructed municipal boilers for solid fuels on biomass resources is constantly
expanding.
Figure 6. Domestic consumers of solid biofuels
Source: Equipment and instruments for professionals. Wood processing (2/2012)
Since pellets need to compete with low priced traditional sources of energy used for heating, the domestic
Ukrainian market for pellets is yet underdeveloped and the majority of producers are export oriented, mostly to
the European market.
Domestic consumption is limited by:
7 http://biomass.kiev.ua/images/conference/pdf/07-davii-ukr.pdf
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Absence of local infrastructure (equipment) for burning pellets;
Lack of suppliers of large feedstock amounts;
Low prices for natural gas.
1.2.4 Liquid fuels
Consumption of liquid biofuels is not widespread in Ukraine. According to market operators it accounts for about
1.7% of the total consumption of gasoline and diesel. For the comparison, in Europe the biofuels account for
about 5% of the total consumption of light oil.
The demand for ethanol is virtually nonexistent in Ukraine. According to market experts the share of ethanol
consumption in the total gasoline consumption is not exceeding 1.8%, the share of consumption of biodiesel in
total diesel consumption is about 1.6% (Figure 7).
Figure 7. Consumption of transport fuels in Ukraine, tons, 2011
Source: State Statistics Committee of Ukraine, data of market operators
The most of the bioethanol and biodiesel produced in Ukraine is used for the own technical needs of
manufacturers.
The share of sales of bioethanol and biodiesel in retail is less than 0.05% (up to 5 thousand tons) of the total
consumption of gasoline and diesel in Ukraine.
The Ukrainian government believes that oil producers are interested in adding bioethanol to gasoline, because it
reduces the cost of fuel. But bioethanol produced in Ukraine does not meet European standards. Thus, the
producers/retailers of gasoline refuse to add the liquid biofuel to gasoline because the consumers soon stop
buying the fuel containing such additives.
Domestic consumption of biodiesel is limited by:
Price of biodiesel production is higher than one of gasoline and diesel;
It is more profitable to sell rapeseed and soybeans for export than to produce biodiesel locally;
Aggressive to rubber parts of the automotive fuel system which should be replaced with plastic parts;
Engine is difficult to start in the cold weather, and it is necessary to heat the fuel coming from the tank
to the pump, or to work on mixes with no more than 20% of biodiesel content;
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It is required the regular cleaning of the oil tank because of bacteria reproducing in it;
Fuel consumption by automobile increases by 10%;
Engine power filled with biofuels falls by 5-10%.
Domestic consumption of bioethanol is limited by:
Informal state monopoly for production of ethanol (Ukrspirt);
High prices for Ukrainian bioethanol;
Lack of investment in modernization of distilleries / sugar factories for the production of bioethanol
(dehydration equipment);
Ukrainian automobile fleet is not ready to use a mixed gasoline. All the old brands of cars and some
modern cars are designed to consume the fuel with only 5% ethanol (Е5);
Filling stations require installation of the equipment for mixing gasoline and ethanol (unit price - USD
3-4 million);
There is a perception that ethanol destroys aluminum parts of fuel systems, under low temperature
mixed gasoline with ethanol (6%) forms a jelly-like clumps in the fuel tank;
Consumption of fuel by automobile filled with bioethanol mixed fuel increases by 25%.
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1.3 Production analysis and key players by sub-sectors
The mapping of major participants of biomass processing market in Ukraine is shown in Figure 8.
Figure 8. Major participants of biomass processing market in Ukraine
Source: Tebodin Ukraine CFI, data of market operators
1.3.1 Heat on biomass
More and more solid biomass boilers are installed in small district heating systems and rarely on Ukrainian heat
and power stations.
Splash of such projects was generated by the foreign aid programs (the Ministry of Economic Affairs or the
Netherlands SENTER, Danish-Ukrainian Project of Heating System Implementation in Rural Areas).
European Union financed various pilot projects for creation of demonstration models and promotion of benefits of
energy-saving and environmentally friendly heating generation technologies.
According to Association of Participants of The Market of Alternative Types of Fuel and Energy, in Ukraine it was
constructed more than 30 large heat generation objects on biomass with total capacity of 42 MW. Total
capacities of heat generation objects on biomass (wood and agrarian wastes) constitute in Ukraine about 64 MW.
Over 60 straw fired boilers, mostly below 1 MW have been put in operation in agricultural farms and rural
schools. About 500 modern wood fired boilers have been installed, and over 1,000 old boilers were converted
from coal and oil to biomass in the wood-working industry and public/social sector.
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Up to 1,000 hot-water boilers working on wood waste (wood chips, sawdust) and straw are installed in housing
sector of small cities of Ukraine. Of them, about 200 are modern units; the rest is redone and converted from coal
to solid biomass.
14 oil extraction plants from 20 available have been transferred to burning of sunflower husk which allowed
replacing 70% of natural gas consumed by the enterprises.
The list of the largest projects of boilers on solid biomass installation is given in Table A in Annex 3.
Thermal power generation of Ukraine has 102 power units with capacity of 150 to 800 MW with total capacity
27.8 MW. Most of heat and power stations were built in 1950-1970 and operated more or about 40 years - a
period which is considered the deadline for operation of boilers and turbines.
Obsolete and worn-out boilers, constant increase in natural gas prices and, as a result, rising costs of heating,
availability of local waste resources make bioenergy very promising and profitable sector of the economy.
Today the input of biomass into the heating energy is less than 4% in Ukraine however the potential is much
higher. The volume of Ukrainian market for the introduction of heating industrial and domestic biomass boilers is
about 60 thousand units with a total installed capacity of 8,180 MW8.
1.3.2 Biogas, Heat and electricity on biogas
In Ukraine there are about 10 biogas installations working on agrarian biomass owned by the large agro industrial
enterprises. Agro-industrial companies mainly use biogas for internal heating and transport needs, rarely for
power generation which is not profitable in Ukraine because of absence of working ‘green’ tariff for biogas.
According to The State Energy Saving and Efficiency Agency of Ukraine 5 companies are involved in production
of electricity from biogas with total capacity of 3.785 MW and 2 plants – in production of electricity from biomass
with total capacity of 4.200 MW.
In addition there are about 5 enterprises (e. g. Pig Farms of 'Zaporozhstal', 'Agro-Oven', Cognac plant
Voznesensk etc.) which are producing biogas exclusively for their own needs.
Enterprises which produce heat and electricity in larger quantities than is necessary for their own needs face the
problem with the sales of their products to utility networks of Energy market of Ukraine.
For these reasons such companies as ‘Spetsgasremtekhnologia’ LLC, ‘West-Ukrainian gas technologies’ LLC,
‘LNK’ LLC, ‘Terezyne’ LLC suspended electricity generation in 2011.
The list of largest biomass and biogas processing companies for power generation are given in Table B Annex 3.
The overall power capacity of renewable energy in Ukraine is estimated at 413.4 MW that allowed producing
332.9 million kW/h of electricity in 2011 that is 0.17% of the total electricity produced in Ukraine9.
The share of biogas and biomass in renewable power capacities constitutes 0.9% and 1% respectively (Table 8).
Table 8. Electricity produced from renewable energy in 2011
Renewable energy source
(number of units)
Installed capacity
Electricity produced
MW % million
kW*hour
%
8 http://delo.ua/business/bioenergeticheskaja-perspektiva-155484/
9 http://www.aif.ua/money/article/34326
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Wind (11) 146.415 35.4% 88.984 26.7%
Solar (17) 188.224 45.5% 30.042 9.0%
Small Hydro (50) 75.016 18.1% 203.463 61.1%
Biogas (8) 3.785 0.9% 0.774 0.2%
Biomass (2) 4.200 1.0% 9.602 2.9%
Total 413.440 100% 332.865 100%
Source: The State Energy Saving and Efficiency Agency of Ukraine
The use of types of biomass for power generation is distributed as follows: straw - 1.4%, wood waste - 17.6%,
firewood - 37.7%, sunflower husks - 25.6%, peat - 15.6%, biogas from manure - 0.3%, biogas from landfills -
1.8% (Table 9).
Table 9. Electricity produced from biomass/biogas in 2009
Type of biomass Consumption
ton/m3 per year tce per year % of total consumption (tce)
Straw 30,000 tons 14,000 1.4%
Wood wastes 646,000 tons 176,000 17.6%
Firewood (population) 1,972,000 m³ 377,000 37.7%
Sunflower husk 500,000 tons 256,000 25.6%
Peat 339,000 tons 156,000 15.6%
Biogas (manure) 4,516,000 m³ 3,000 0.3%
Biogas (solid domestic waste) 26,192,000 m³ 18,000 1.8%
Total 1,000,000 100%
Source: Scientific Engineering Centre ‘Biomass’ Ltd.
In case the Parliament of Ukraine approves and the President of Ukraine signs the changes into the Law on
Electricity regarding the introduction of ‘green’ tariff for electricity produced from biogas and biomass, the boom of
biogas construction may start.
1.3.3 Solid biofuels
Sunflower husk, wood and straw are used as main biomass feedstock for pellets and briquettes production in
Ukraine (Figure 9).
Domestic use of solid fuel for heat is relatively common in oil extraction plants and woodworking industries and
becoming more and more popular in rural areas.
However, more often the boilers in rural areas are working on unprocessed wood waste or straw instead of fuel
pellets which are still too expensive.
Small portion of pellets are used by wealthy residents of cottages who for one reason or another do not use gas
for heating.
Totally about 1,000 of boilers on solid fuel (pellets and briquettes) of small capacity have been installed in rural
areas of the countries.
In spring 2012 the boilers on solid biofuels and electricity for heat generation have been installed at 20 public
facilities in Odessa region. Some of them use not only granular biofuels for heat production but other types of
crop residues such as crushed straw and cane.
In the future more than 50 boilers are planned to be converted from gas to solid biofuels made of straw in Kharkiv
region.
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Figure 9. Structure of raw material base for pellets production
Source: D&P Consult
In 2011 Ukraine produced 741 thousand tons of solid fuels. As the market is immature it is developing rapidly
with the annual growth rates of 15-20% (Figure 13).
Furthermore, the market growth potential is significant due to availability of unused straw of cereal crops, wood
wastes and sunflower husk.
Figure 10. Production of pellets and briquettes in Ukraine
Source: D&P Consult
According to data of market operators in 2011 about 137 pellets and 121 briquettes plants in Ukraine produced
about 620 thousand tons of pellets and 120 thousand tons of briquettes from various types of biomass.
According to forecast of APEU the substantial expansion of facilities for production of solid biofuels is expected
by the end of 2012 (Table 10). These could be reached thanks to good harvest in 2011, increase of demand on
pellets on domestic and EU market, and also to improvement/extension of solid fuels production capacities.
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Table 10. Producers of solid biofuels by types of raw materials
Indicators As of September
2011
Forecast on
2012
%
change
Number of producers of pellets incl.: 137 150 9%
Straw 9 11 22%
Wood wastes 90 94 4%
Sunflower husks 38 45 18%
Total design capacities of pellets production, tons/year 800,000 970,000 21%
Number of producers of briquettes incl.: 121 140 16%
Straw 7 14 100%
Wood wastes 96 106 10%
Sunflower husks 18 20 11%
Total design capacities of briquettes production, tons/year 150,000 250,000 67%
TOTAL DESIGN CAPACITIES OF SOLID BIOFUEL PRODUCTION,
TONS/YEAR
950,000 1,220,000 28%
Source: Association of Alternative Fuel and Energy Market Participants (APEU)
The list of the largest producers of solid fuel is shown in Table C Annex 3.
The European Union’s policy targets for renewable energy and greenhouse gas (GHG) emissions reduction and
connected subsidies are the main driver of growth of the pellet market in Europe. Pellet production in the EU
cannot satisfy European demand for pellets offering export opportunities for Ukrainian producers.
Currently, pellets of Ukrainian origin constitute only about 2.5% of the European pellet market. To further
increase their market share Ukrainian pellet producers have to improve the quality of the exported pellets. Two
main factors influence how successful they will be in the process: the quality of the feedstock and the quality of
the equipment.
1.3.4 Bioethanol
The commercial production of bioethanol in Ukraine till recently was a state monopoly. Majority of ethanol
producers are combined under the State Concern ‘Ukrspirt’10
. The two-thirds of the ‘Ukrspirt’s capacities are
currently out of work. In 2006 - 2007 the conversion of few of ‘Ukrspirt’ distilleries for bioethanol production had
been carried out.
According to the Ministry of Agrarian Policy and Food of Ukraine in 2011 at four state-owned factories of ‘Ukrspirt’
- Naumovskyi, Luzhanskyi, Haysinskyi, Khorostkovskyi distilleries there were produced 9,726 tons of bioethanol
and 14,416 tons of components of alternative fuel blend.
Production capacities of bioethanol are also available to private companies – ‘Budylskyi experimental plant’
(White House Trading, UK), ‘Koron Agro’ LLC (Continium Group, WOG fueling stations), ‘Dacor Agroholding’
(Ukrlandfarming).
Few oil refueling retailers mostly in Eastern Ukraine – ‘BioHim Group’, ‘Agro-Nafta’, ‘Azovskaia oil company’ LLC
have launched the mixing of gasoline with bioethanol additives.
Large producers of bioethanol and biofuels with bioethanol additives are shown in Table D Annex 3.
10
To date, in fact, two-thirds of the capacities of ‘Ukrspirt’ do not work. In 2006 - 2007 the activities to convert those distilleries for
bioethanol production were carried out.
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In the retail trade in the period of 2011 - first half 2012 there were such types of fuels containing ethanol:
INNOVATIVE-95, A-92-E 40, A-92-E40 turbo, A-95-e40, A-95A, Ab-92e40 EXTRA, Ab-95e40 EXTRA, Ab-98e85
EXTRA. The share of bioethanol (produced from biomass resources) in these fuels is about 30-40%11
.
According to market operators’ estimates, the annual production of bioethanol in Ukraine is about 80,000-
100,000 tons.12
The gasoline with bioethanol additive is produced in Ukraine in small amounts (20,000-30,000 t/y).
At the moment the design capacities of liquid biofuel plants is estimated to 200,000 tons of bioethanol and
500,000 tons of biodiesel. However, due to lack of domestic consumption, the biofuels production is far behind
their actual and potential capacities.
According to Ministry of Agrarian Policy and Food of Ukraine the potential capacities of bioethanol production is 2
million tons, and of biodiesel - 1 million tons per year (Table 11).
Table 11. Production of liquid biofuels, 2011
Liquid biofuels Large plants Medium & small
plants
Capacities, thousand tons
actual design potential
Bioethanol of which: 2 (Haisyn distillery, Koron
Agro)
18 <100 200 2,000
- Bioethanol of state distilleries
‘Ukrspirt’
1 (Haisyn distillery) 12 9.7 130 370
Biodiesel
<10 84 <100 500 1,000
Source: Ministry of Agrarian Policy and Food of Ukraine, Institute of Food Biotechnology and Genomics of National Academy of
Sciences of Ukraine, Scientific Engineering Centre ‘Biomass’ Ltd.
Ukraine has significant potential for bioethanol production from different feedstock (sugar beet, corn, potato,
wood wastes, and residues of alcohol and sugar production).
Taking into account recently accepted Law on production and use of transport fuel with content of bio
components and intention of the government to convert 37 state owned unprofitable distilleries (‘Ukrspirt’) for
production of bioethanol – the sector becomes more perspective.
1.3.5 Biodiesel
Ukraine produces annually about 100,000 tons of biodiesel - almost the same amount for the past 3 years. About
60-70% (60,000-70,000 tons) of this volume is produced by the small-scale biodiesel installations with capacity of
300-5,000 tons/per year used by the farmers for their internal heat and transport needs.
According to the Ministry of Agrarian Policy and Food of Ukraine, by 2011 84 small biodiesel installations and up
to 10 large plants has been built which at full load can produce a minimum of 500,000 tons of biodiesel per year.
Kalush chemical enterprise in Ivano-Frankivsk region has the largest capacity of biodiesel production. The plant
can produce 180,000 tons of biodiesel. In 2012 the plant was declared bankrupt and now is offered for sale.
Till recently significant amounts - about 50,000 t/y of cheap biodiesel were imported from Belarus. In August
2012, the imports of Belarusian oil products (including biodiesel) were suspended.
11
http://oilnews.com.ua/news/article14273.html 12
State Statistics doesn’t keep records on ethanol production (neither potable, nor technical) and according to independent (private)
experts ‘estimate - about 60-70% of Ukrainian ethanol is in the shadow.
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The list of the largest biodiesel producers in presented in Table E Annex 3.
The practice shows that biodiesel production from rapeseed in Ukraine is unprofitable because of the high cost of
processing of rape ester and the world prices on rapeseed oil. 90% of Ukrainian rapeseed crop is exported to EU
with zero rate of excise duty.
According to Ukrainian scientists the corn is even better feedstock then rape for biodiesel production. Large
opportunities for biodiesel production represent the multi-wastes of meat processing, poultry, wastes of oil
refining and frying oil of catering.
The Draft Law No. 7524 of 12.29.2010 ‘On the development of production and consumption of biofuels’ has been
developed to stimulate the production of biodiesel. According to the Draft Law, in 2012, the proportion of
biodiesel in the total production of diesel fuel in Ukraine should not be less than 10%, in 2013 - at least 30%, in
2014 - at least 50%, in 2015 and beyond - not less than 80%.
The Draft Law was declined by President of Ukraine on 22 June 2012 as requiring improvement. If this Law will
be worked-out and finally adopted, Ukraine will have a chance to develop the biodiesel industry.
Stricter requirements for import of rapeseed in Europe (the EU ‘Renewable Energy Directive’) might be also an
incentive to start industrial biodiesel production and to give a push for the domestic market of biodiesel.
1.3.6 Bio-fertilizers
The important by-product of biogas production is disinfected bio fertilizers - sludge remaining after full over
fermentation of feedstock. It is odorless, does not contain harmful bacteria and eggs of worms.
The sludge can be divided into two fractions: the liquid and solid. And both are good fertilizers. Solid fraction is
easier to be packed, stored and transported.
Bio fertilizers market in Ukraine has not yet been formed. All bio fertilizers produced by existing biogas plants in
Ukraine are either consumed by the producers or are sold to neighboring agricultural enterprises.
Figure 11. Use of fertilizers for agricultural crops by agricultural enterprises, per hectare of sown area
Source: State Statistics Committee of Ukraine
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1.3.7 Biobased polymers
From plants containing cellulose or starch (corn, sugar beets, potatoes) and waste of crop processing plants the
production the biodegradable polymers (bio plastics) may be arranged.
Polylactide (PLA - Poly Lactic Acid, PL) is a product of the polymerization of lactic acid is now seen as one of the
most promising biodegradable polymers.
‘Kyiv Lactic Acid Plant’ is the only Ukrainian manufacturer of microbiologically produced lactic acid. It produces
lactic acid from sugar. Lactic acid is currently used only by the Ukrainian food industry.
1,000-1,200 tons of lactic acid is produced at the plant. Today, the plant capacity is used for 60%, because the
product is more expensive than synthetically produced lactic acid imported from China.
‘Dnieper Starch and Syrup Plant’ (Dnipropetrovsk region) is also operating in Ukraine whose products - corn
starch and corn syrup - can be used for the production of lactic acid. The plant produces about 30,000 tons of
molasses and 6,500 tons of starch.
Legally and economical supportive mechanisms can encourage the manufacturers of packaging and food
products to produce and use the biodegradable packaging. But such conditions in Ukraine so far do not exist.
Production of other types of biomaterials and biochemical is not developed in Ukraine due to lack of legislation
and financial resources for such financially heavy projects.
1.4 Sales system
Most of the enterprises and companies which operate on bioenergy market utilize their own biomass resources
buy it from farmers in the vicinity of production site.
Transport distance is one of the most important factors influencing the feedstock price. This could be explained
by the small value of the ratio of feedstock’s density to weight. Therefore, transport distances of more than 50 km
are not economically feasible. Furthermore, truck renting services has not been properly developed in Ukraine
yet and their costs remain high. As a result, pellet producers sign individual contracts with private transporters.
For example, a truck of 40 m3 body volume can transport 10 large straw bales or 26 medium straw bales.
Transportation for each kilometer in Ukraine costs about USD 0.03-0.1/t. Medium straw bales are cheaper to
transport than large ones due to their lower size to weight ratio. Transportation of straw bales for the distance of
10 km costs about USD 0.9/t and of 50 km – up to USD 4.6/t.
Transporting wood residues is cheaper in comparison to transporting straw bales. However, it should be
accounted that supplied wood feedstock can be of different size (from large parts of trees to small particles like
sawdust or wood chips). Transportation of small wood residues for the distance of 10 km costs about USD 0.6 /t
while transportation of large wood residues is about 2 times cheaper.
Sunflower husk is light by weight and thus requires large truck body volume to transport. According to the market
information, the largest truck used to transport sunflower husk has a body volume of 60 m3 and can contain up to
9 t of the feedstock.
The products of biomass processing (such as heat, biogas, fertilizers, electricity) is often used for internal needs
of the company which produce them. For example, forestry and woodworking enterprises use their own wood
residues in boilers for heat production, oil extraction plants process sunflower husks for steam and heat
generation etc.
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Biomass trade is more developed in energy crops, wood materials and solid fuels. Sales of biomass are often
spontaneous. Practice of long-term biomass supply contracts is not developed.
Prices for straw, wood residues and other types of biomass resources and products are not clearly formed and
may vary at different regions, areas and depend on the season.
Business portals containing the information on available biomass feedstock, types and characteristics of fuels,
prices, types of delivery and contact information of the buyers/sellers are developing:
Business portals ‘Waste World’ http://waste.ua/
Ukrainian Biofuel Portal http://pelleta.com.ua/
AllBiz Ukraine http://www.ua.all.biz/
Project EcoB2b.net: http://ecob2b.net/ru
Exchange trading of alternative fuels http://ueex.com.ua/ukr/auctions/biofuel/
The external trade with Ukrainian biomass products is performed with help of:
Traders/suppliers of various foreign industrial customers
Foreign heat and power plant and industrial enterprises by-passing intermediaries
Trade houses and agents of producers.
Biomass products (apart of small amounts of solid fuels for domestic use and mixes of gasoline with bioethanol)
are not present in Ukrainian retail.
1.5 Price survey
Price of natural gas in Ukraine has been rising constantly since 2005 - from USD 60 to 421/1,000 m3
(on
average) in 2012. The average price for 2013 is announced at the level of USD 417/1,000 m3 (Figure 15).
Figure 12. Rise of natural gas price in Ukraine
Source: NJSC ‘Naftogas of Ukraine’
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The high price of natural gas is one of the strong drivers for bioenergy technologies development. Biomass as
fuel becomes more and more competitive. Comparison of costs recalculated per fuel energy content shows that
firewood and baled straw is about 4 times as cheaper than natural gas, and wood pellets are 2 times as cheaper
(Table 12).
Table 12. Comparison of prices of natural and solid biomass fuels, 2010
Fuel type Typical price, EUR/t Low heating value,
MJ/kg
Cost of fuel energy,
EUR/GJ
Ratio: cost of NG
energy*/cost of BM
energy
Wood processing
wastes
0-0.86 11 0-0.08 >85
Firewood (delivered
price)
17 11 1.6 4.3
Wood pellets 69 18 3.8 1.7
Wood briquettes 60 18 3.4 2.0
Baled straw (delivered
price)
26 15 1.7 3.9
*EUR 6.7/GJ (based on NG price for industry and organizations financed by the state and local budgets)
Source: Scientific Engineering Centre ‘Biomass’ Ltd.
1.5.1 Heat on biomass
With current prices for production of one unit of heat, the firewood is in 6.8 times, husks pellets – in 3.3, baled
straw - in 2.613
, wood pellets - in 2.1, coal – in 1.7 times cheaper as the natural gas (Table 13).
Table 13. Comparison of price of resources for 1 GJ heat generation
Type of resource Unit of
measurement
Price of
resource,
USD
Price of
resource,
EUR
Price of fuel for
generation of
1GJ of heat,
USD
Price of fuel for
generation of
1GJ of heat,
EUR
Ration: cost
of NG heat
/cost of
biomass heat
Electricity (average tariff) KWh 0.1 0.1 39.0 29.8 -
Natural gas 1,000 m3 600.8 458.9 19.5 14.9 -
Anthracitic coal t 162.7 124.3 11.4 8.7 1.7
Wood pellets t 169.0 129.1 9.5 7.3 2.1
Husk pellets t 106.4 81.3 6.0 4.6 3.3
Firewood t 50.1 38.2 2.9 2.2 6.8
Source: http://teplo.zp.ua/fuel-cost-for-heat-unit/
As shown in Figure 16 the price of heat generated with coal is comparative to those produced with solid biomass
(wood pellets and baled straw). Taking into account that solid biomass firing requires additional investments into
the new equipment, collection and storage technologies; the profitability of biomass projects is lower than those
of coal firing.
13 http://esco-ecosys.narod.ru/2008_3/art26.htm
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Figure 13. Comparison of prices of 1 GJ of heat generated by different energy resources, USD
Source: http://teplo.zp.ua/fuel-cost-for-heat-unit/
1.5.2 Electricity on biogas
Prime cost of electricity produced from biogas and biomass in Ukraine ranges EUR 0.05-0.12 per kWh and
greatly depends on a number of factors such as location of production, type and cost of raw materials etc.
Table 14 shows the difference between the prime cost of electricity and the proposed ‘green’ tariff for energy
generated from alternative sources of energy in Ukraine.
Table 14. Comparison of prime cost and ‘green’ tariff for electricity from RES
RES Prime cost, euro
cent/kWh
‘Green’ tariff, euro cent
/ kWh
Sun (max) 15-30 46.53
Sun (min) 20-50 42.65
Biogas (from agricultural raw materials and components of biodegradable
solid household waste)
5-12 12.39
Biomass 5-12 12.39
Wind (max) 5-14 11.31
Wind (min) 5-14 6.46
Hydro (up to 10 MW) 5-12 7.75
Source: ‘Delovaya Stolitsa’ #48/602 26.11.2012, International Solar Energy Society
1.5.3 Solid biofuels
The prices for solid fuels depend on many factors such as pellet/briquettes types, their quality (mostly ash
content), terms of delivery, seasonality etc.
There is no official statistics on average prices for solid fuel in Ukraine. According to market operators in 2012 the
average domestic price of pellets (ENPlusA2) amounts to USD 122-148 per ton, for briquettes – USD 116-140
per ton.
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Starting from February 2012 Ukrainian Energy Exchange (UEEX) provides the weekly publication of wholesale
prices for solid biofuels put up to the auction for large consumers and traders (Table 15).
Table 15. Price for solid biofuels for large consumers and traders as of 13 September 2012
CE "UEEX" Solid biofuel Pellets Briquettes
Husks Straw Wood Husks Straw Wood
Price, USD/ton 107.6 91.4 103.9 103.8 85.1 87.6
Price, EUR/ton 83.7 71.1 80.8 80.8 66.2 68.2
Source: http://ueex.com.ua/eng/auctions/indicators/
Price of solid fuels during the heating season is usually 10-15% higher than in spring and summer.
Wood pellets traditionally are of high demand in EU and thus of higher prices on the market.
Prices of sunflower husk briquettes and pellets are comparative to prices of wood pellets and in spring and
summer are even higher. This is related to the fact that the sunflower husk feedstock is naturally cheaper during
the oil-extracting period and more expensive in cold season of the year with the peak of sunflower oil production
lasting from October to December.
Solid fuel from straw has the lowest cost of production because of the lowest average purchasing price of straw
feedstock.
1.5.4 Liquid fuels
In Ukraine there are several companies that sale gasoline with a share of more than 30% of ethanol (called E30).
The output of such fuels are small but the producers state that the blends compete well with traditional fuels
because of more favorable price (transport fuel with biological share of more than 33% is exempt of excise
payment).
For example the hybrid gasoline A-95e (with 33-40% of bioethanol) costs USD 1.24/l instead of USD 1.39/l for
normal A-95. In general, the liter of biofuel is 10-18% cheaper than traditional fuel (Figure 14).
Figure 14. Retail price of engine fuel as of September 2012, USD/l
*30-40% bioethanol
Source: http://biz.liga.net/tek/oil/, data of market operators
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At the same time the price of Ukrainian pure ethanol is one of the most expensive in the world because of the
state monopoly in the sector.
As stated in the Association of Market Participants of the Alternative Fuel and Energy of Ukraine, in 2012 the
domestic bioethanol is sold at USD 1.45-1.51 thousand per ton. This makes Ukrainian ethanol uncompetitive
compared with imported analogues that are USD 1.26-1.32 thousand per ton.
The producers and sellers of liquid fuels are considering the possibilities of purchasing ethanol in Moldova, North
Ossetia, and Kabardino-Balkaria. Apart of that there is an option to buy the cheap Brazilian bioethanol which is
less expensive than Ukrainian one even under condition of its transportation and supply to Black Sea ports.14
1.6 Foreign trade
1.6.1 Export
Ukraine is large exporter of solid fuel (mainly husks briquettes and wood pellets) and biomass feedstock
(rapeseed) for biodiesel production to Europe. Moreover, Ukraine is one of the six largest grain exporters of the
world and a large producer and exporter of oilseeds and sugar beets.
Key export figures and trends:
Total export of processed solid fuel (pellets/briquettes) amounted to 630 thousand tons in 2011. Annual
export growth dynamics in natural form – 30% (Figure 18)
Total export of solid fuel (straw and wood biomass feedstock and products) amounted to about 1.2
million tons in 2011. Annual export growth dynamics in natural terms – 16% (Table 20).
80-85% of Ukrainian solid fuel production is exported to EU for electricity and heat production.
90% of Ukrainian rapeseed crop is exported to EU with zero rate of excise duty.
Orientation to low cost export segment (countries of Central Europe: Poland, Slovakia, the Czech
Republic) rather than top cost segments (Germany, Austria).
In Ukraine is more profitable to export rapeseed and soybeans than to produce biodiesel locally.
Pellets of Ukrainian origin constitute about 2.5% of the European pellet market.
The EU targets of increasing the share of renewables stimulate the export of Ukrainian biomass
feedstock and solid fuel.
14
http://oilnews.com.ua/analitycs/article16606-print.html
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Figure 15. Export of processed solid fuel, tons
Source: Fuel Alternative
In 2010 the total export of processed solid fuels amounted to 573.4 thousand tons, of them:
wood pellets - 87.1 thousand tons; wood briquettes - 48 thousand tons;
husk pellets - 406.8 thousand tons; husk briquettes - 25.7 thousand tons;
straw pellets - 3.1 thousand tons; briquettes - 2.7 thousand tons.
Figure 16. Export structure of solid biofuels in 2010, thousand tons
Source: Fuel Alternative
Table 16. Export of straw and wood fuels
Type of product Unit 2007 2008 2009 2010 2011 Jan-Aug
2012
Straw and chaff of cereals fuel
(UKTZD 1213)
USD thousand 7 97 366 556 1,414 1,870
ton 44 578 3,437 5,720 12,627 14,542
Wood fuels (UKTZD 4401*) USD thousand 31,501 35,770 50,782 65,801 86,395 55,160
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Type of product Unit 2007 2008 2009 2010 2011 Jan-Aug
2012
ton 674,529 694,965 924,073 1,126,354 1,164,942 797,954
* Wood fuels according to Ukrainian classification (UKTZD 4401) includes the logs, twigs, branches, wood chips or shavings, sawdust,
debris, whether agglomerated or not agglomerated in the form of logs, briquettes, pellets etc.
Source: State Customs Service of Ukraine
The most attractive markets for Ukrainian pellets and briquettes are considered Denmark and Sweden, which are
themselves the largest manufacturers in this market. Large purchasers of Ukrainian solid fuels are Poland,
Slovakia, Germany, the Baltic countries. England, Italy, the Czech Republic also have an interest in local
biofuels.
Straw pellets are mainly exported to Poland, Germany, Austria and Denmark. Lesser amounts are also sold on
the domestic market (Table 16).
Ukrainian wood fuels enjoy the popularity in many EU countries. The large portions are supplied to Poland,
Slovakia, Austria, Germany and Italy (Table 17).
Table 17. Export of straw fuels (UKTZD 1213) in 2011
Country USD
thousand % tons
%
Poland 1,009 71.4% 9,070 71.8%
Germany 353 25.0% 3,167 25.1%
Austria 24 1.7% 220 1.7%
Denmark 13 0.9% 87 0.7%
Belgium 9 0.6% 41 0.3%
Italy 4 0.3% 22 0.2%
Czech Republic 2 0.1% 20 0.2%
Total 1,414 100.0
% 12,627
100.0
%
Source: State Customs Service of Ukraine
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Table 18. Export of wood fuels (UKTZD 4401) in 2011
Source: State Customs Service of Ukraine
Biogas
The biogas of Ukraine is not exported. The trade with biogas including the external trade in Ukraine is a subject
of compulsory licensing. Export and import of biogas in Ukraine is not practically possible as the procedure of
licensing has not been approved and the necessary infrastructure is not available.
Bioethanol
The export of domestic bioethanol is hardly probable in the near future because the price of Ukrainian ethanol is
one of the most expensive in the world. Even local producers and retailers of transport fuels are willing to import
the ethanol from other countries. Ethanol is supplied to Europe basically from Brazil where it is produced from
sugar cane. Sugar cane is the cheapest feedstock for ethanol production with which it is difficult to compete.
Biodiesel
The export of Ukrainian biodiesel is not expected in short perspective. Ukrainian rapeseed export is largely driven
by the EU biofuel and food policy as more than 90% of domestically produced rapeseed is exported to the EU for
vegetable oil production (for food and industrial use). In Europe the biodiesel production is subsidized by the
government, thus, the export price of Ukrainian rapeseed and soybean is even higher than the price of the edible
oils from them.
Export and import duties for biomass feedstock and products are described in Sub-chapter 4.6.3 Customs dues.
1.6.2 Import
Ukraine imports inconsiderable amounts of wood fuel (Figure 20) and bioenergy technologies.
Country USD thousand % tons %
Poland 28,454 32.9% 369,264 31.7%
Slovakia 15,158 17.5% 284,438 24.4%
Germany 13,204 15.3% 98,867 8.5%
Italy 6,885 8.0% 76,395 6.6%
Austria 5,828 6.7% 116,576 10.0%
Czech Republic 4,341 5.0% 38,992 3.3%
Hungary 3,528 4.1% 73,934 6.3%
Rumania 2,743 3.2% 54,393 4.7%
Denmark 1,793 2.1% 14,040 1.2%
Belgium 1,512 1.8% 10,353 0.9%
France 551 0.6% 2,867 0.2%
Luxemburg 510 0.6% 4,056 0.3%
Slovenia 469 0.5% 5,371 0.5%
Lithuania 318 0.4% 2,174 0.2%
The
Netherlands 302 0.3% 2,128 0.2%
Moldova 137 0.2% 1,472 0.1%
Other 666 0.8% 9,622 0.8%
Total 86,399 100.0% 1,164,942 100.0%
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Figure 17. Import of wood fuel (UKTZD 4401)* to Ukraine
* Wood fuels according to Ukrainian classification (UKTZD 4401) includes the logs, twigs, branches, wood chips or shavings, sawdust,
debris, whether agglomerated or not agglomerated in the form of logs, briquettes, pellets etc.
Source: State Customs Service of Ukraine
The wood fuels are supplied to Ukraine from Germany, Poland, Belarus, Russian Federation and Lithuania
(Table 19).
Table 19. Import of wood fuels (UKTZD 4401) in 2011
Source: State Customs Service of Ukraine
Bioethanol
Domestic trade with bioethanol is a subject of compulsory licensing in Ukraine. Today, only one license is
available to SE ‘Ukrspirt’. The state enterprise is supplying only inconsiderable amounts of alimentary spirit.
The import of various ethanol comprising products (components of motor fuel) and mixtures of gasoline with
bioethanol is possible without obtaining the license. However, so far these products are not imported into
Ukraine.
Country USD thousand % tons %
Germany 237 69.7% 392 51.9%
Poland 58 17.1% 116 15.3%
Belarus 2 0.6% 58 7.7%
Russian Federation 4 1.2% 39 5.2%
Lithuania 13 3.8% 35 4.6%
Slovakia 2 0.6% 28 3.7%
The Netherlands 5 1.5% 22 2.9%
Denmark 1 0.3% 22 2.9%
USA 2 0.6% 21 2.8%
France 13 3.8% 2 0.3%
Total 337 100.0% 735 100.0%
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Biodiesel
Until recently Ukraine imported annually more than 50 thousand tons of biodiesel from Belarus (Figure 21).
Because of biological additives the biodiesel from Belarus was sold outside the Customs Union free of Russian
export duties.
In August 2012, the imports of Belarusian oil products (including biodiesel) were suspended. Currently,
governmental bodies of Ukraine are studying the possibility to protect Ukrainian producers of petroleum products
and are working on a package of anti-monopoly measures.
The result of this work may be the establishment of some local import duties for biodiesel or increase in excises.
Figure 18. Biodiesel motor fuel supply to Ukraine from Belarus
Source: http://oilnews.com.ua/news/article15032.html
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2 Trends, drivers and barriers to sector development
2.1 Main trends
Ukrainian biomass processing sector is characterized by the following trends:
The market is under development and formation;
Increasing demand for bioenergy products in the domestic market;
Increase of production and trade (incl. external) with solid fuels from wood, straw and sunflower husks;
Rise in cost of biomass raw materials;
Solid fuel producers consolidation and leaving the market by smaller players;
Growing interest of the large agro industrial holdings to any type of waste processing technologies.
Large investments in high-capacity sunflower husk palletizing and biogas production. Increasing interest
in straw pelletizing technologies;
Increase in number of heat generation units on biomass (basically wood) in rural areas;
Interest of politicians and business environment to RES issues. Appearance of the new state programs
(National Projects ‘Energy of Biogas’ and ‘Energy of Biomass’), acceptance of the new standards (solid
fuels), favorable legislative novelties (biogas and bioethanol production).
2.2 Main drivers
The main drivers of the biomass sector development:
1. Energy dependence on import and constantly growing prices on fossil fuels. Since 2005, Ukraine
has seen the rise in gas prices more than by 700% (from USD 60 in 2005 to USD 421/1,000 m3 in 2012
on average) and electricity prices - more than by 100%.
2. The European Union sustainability and energy saving targets. The EU’s targets for renewable
energy growth and greenhouse gas (GHG) emissions reduction stimulates the growth of the bioenergy
market and enhances the export of Ukraine15
.
3. Credit lines, technical assistance and pilot projects financed by IFIs.
a. In 2011 Ukraine signed the agreement with the World Bank on allocation for Ukraine of 30-year
loan of USD 200 million for energy efficiency investment projects in industrial enterprises,
municipalities and energy utility service companies. Such a loan is designed to help reducing
the country's energy-intensive economic indicators by 20% till 2015 and by 50% - till 2030,
according to the goals set by the Government of Ukraine.
b. European Bank for Reconstruction and Development provides the credit lines and partial
support of the technical assistance projects in energy efficiency sector of Ukraine. The Bank’s
strategy for 2011-2014 among other issues is focused on development of renewable energy
generation capacities, including under the programs UKEEP, USELF and for rehabilitation of
existing hydro power plants.
4. Necessity of urgent upgrade and increase of energy efficiency on heat and power capacities.
Most of heat and power generation facilities in Ukraine are owned by the state, the regions or the
15
The total share of RES constitutes 9% of energy consumption of EU. The goal set for 2020 stipulates 20% of RES. The input of
bioenergy into RES constitutes 107.1 mtce (about 70% of the total input of RES in the EU energy balance). Production of biomass
pellets in EU is expected to reach 46 million tons by 2020, reflecting the annual growth rate of roughly 11%.
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municipalities and for 70% operate on traditional fuel. The rate of depreciation of the existing capital
assets has reached 70% on average which leads to inefficiency and sometimes stoppage of operations.
5. Favorable taxation and recent legislative initiatives of the government of Ukraine. Introduction of
‘green’ tariff for agrarian residues and adoption of the Law regarding compulsory adding of bioethanol to
transport fuel give a serious impetus for development of the biomass processing market of Ukraine.
Ukraine has already appeared on the latest Ernst & Young Renewable Energy Country Attractiveness
Indices report, proving to be an attractive emerging market for renewable energy due to tax incentives
available to ‘green’ energy companies16
.
6. Ukrainian interstate agreements. In 2011 the European Union admitted Ukraine to the European
Energy Community (EEC). According to EEC’s contract Ukraine should gradually introduce the
European energy norms and standards (including those for biofuels and bioenergy), provide assistance
to producers of power energy and to assess the current regulatory framework on removing obstacles for
increasing production of electricity from RES.
2.3 Major barriers
In spite of numerous perspectives there are a lot of problems which hamper development of biomass processing
of Ukraine. The most critical issues are as follows:
Legislation
Legislation is subject to frequent and not always transparent changes.
Unregulated procedure of tariff formation for heating and unregulated rights of independent heat
suppliers.
Cross-subsidizing of prices for heat and electricity and low prices for coal and natural gas for population
and municipal housing sector.
Misbalance of prices on biomass in the local and export markets.
Pellet producers can benefit from several types of the tax exemption. To be granted these tax
exemptions, however, they must have an alternative energy producer certificate. The procedure of
obtaining the certificate is complicated with much leeway for the issuing authority.
Technologies and equipment
Lack of complex process solutions which results in assembling of equipment of various suppliers and
inefficient production process.
Ukrainian producers often use modernized soviet technologies. Those are cheaper in comparison to the
foreign analogues; however, the lifecycle of such equipment is shorter and the quality of the produced
products is often lower.
Most of heat and power generation facilities in Ukraine are owned by the state, the regions or the
municipalities and for 70% operate on traditional fuel. Due to the lack of investments the rate of
depreciation of the existing capital assets has reached 70% on average which lead to inefficiency of
production.
High cost of the heating equipment operating on pellets/briquettes. At present, coal and gas boilers are
cheaper than boilers for pellets.
16
http://www.ukraine-arabia.ae/news/302/
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Feedstock supply
Since the feedstock market is underdeveloped, biofuel producers face difficulties with the quantity of
feedstock supply and its quality.
Low availability of the collection equipment and poor rural and forest infrastructure cause obstacles for
efficient feedstock collection.
Furthermore, as demand exceeds supply for transportation services, costs of transport are high. The
collection and transportation problems create obstacles for the constant feedstock supply. It may
therefore influence the process and volume of production.
Additionally the feedstock can have excess moisture and rubbish content which increases the required
quantity per ton ratio of pellets.
Lack of well qualified personnel
Low understanding of the matter of biomass and RES at the Ministries and State authorities.
Ukraine is characterized by high urbanization which has increased since independence. Currently the
rural population constitutes about one third of the total population in Ukraine. This is associated with
underdeveloped infrastructure in rural areas. Since wages are low, the highly qualified workers tend to
move to the cities. This creates difficulties for employers to find appropriate staff in villages to operate
the biofuel production. Therefore, investors/producers in rural areas can only attract them by paying
above average wages or make additional investments to increase local personnel’s qualifications.
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3 Branch regulation
3.1 Branch structure
The existing system of governance in the energy sector of Ukraine was formed spontaneously, acting primarily in
the interests of certain groups of influence and are imperfect.
There is no single institution which regulates the sector of renewable energy. The areas of responsibility in the
field of biomass and other renewable sources are not clearly delineated. Different state bodies and institutions
are involved in the sector regulation and their policies are often mismatching.
Figure 19. State bodies regulating the areas of RES
Table 20. Information of the state bodies
Organization Address Contact Position Tel. E-mail, Web-site
Ministry of Energy and
Coal Industry of
Ukraine
01601, Kyiv, 30,
Khreschatyk Str.
Mr. Yuriy
Anatoliyovych
Boiko
Minister +38 044 206 38 00 http://mpe.kmu.gov.ua/fuel/c
ontrol/uk/index
Ministry of Economic
Development and
Trade of Ukraine
12/2 Grushevskogo
St., 01008, Kyiv,
Ukraine
Mr. Poroshenko
Petro
Oleksiyovych
Minister +38 044 253 93
94;
+38 044 226 31 81
http://www.me.gov.ua/contro
l/en/index
Ministry of Agrarian
Policy and Food of
Ukraine (MAPFU)
01001, Kyiv, 24,
Khreschatyk Str.
Mr. Mykola
Prysiazhnuk
Minister +38 044 279 84 74 http://www.minagro.gov.ua
The Ministry of
Regional
Development,
Construction, and
Housing of Ukraine
01601, Kyiv,9,
V.Zhytomyrska str.
Mr. Anatoliy
Mykhailovych
Blyzniuk
Minister +38 044 284 05
54; +38 044 284
05 51
http://minregion.gov.ua/
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Organization Address Contact Position Tel. E-mail, Web-site
National Agency of
Ukraine on Ensuring of
Efficient Use of Energy
Resources
Kyiv-01601, Muzeinyi
lane,12
Mr. Mykola
Pashkevych
Head +38 044 590 59
60; +38 044 590
59 74;
+38 044 590 59
61; +38 044 590
59 75
http://saee.gov.ua/en/manag
ement
State Agency of Forest
Resources of Ukraine
1601, Kyiv,
Sh. Rustaveli str., 9-a
Sivets Victor
Mykolayovych
Head +38 044 235-56-
20; 226-32-53
http://dklg.kmu.gov.ua/forest
/control/en/index
State Agency of
Ukraine for Investment
and Development
V. Zhytomyrska str.,
11, Kyiv-34, Ukraine,
01601
Mr. Oleksand
Taran
Head +380 44 255 91
73; +380 44 278
05 34
http://in.ukrproject.gov.ua/in
dex.php?lang=en
State Agency for
Investment and
National projects of
Ukraine
01015 Kyiv,
Tsytadelna 7th Street
Mr. Vladyslav
Volodymyrovych
Kaskiv
Head +38 044 254 40 15 http://www.ukrproject.gov.ua
/en
National Electricity
Regulatory
Commission of
Ukraine
19, Smolenska st.
Kyiv, Ukraine
03680
Mr. Titenko
Sergiy
Mykhailovych
Head + 38 044 241
9001; + 38 044
241 9047
http://www2.nerc.gov.ua/con
trol/en/publish/category
3.2 State programs
In Ukraine a number of programs in energy efficiency and alternative energy have been developed. For the most
part they are of declarative character and miss the description of funding mechanisms and responsibilities for
their implementation. Announced objectives of the programs differ at times in various state programs.
3.2.1 Acting programs
The following State programs are acting in Ukraine:
1. ‘The Energy Strategy of Ukraine till 2030’ dd. 2006. The strategy was approved in March 2006 by the
Cabinet of Ministers and provides comprehensive overview of the situation in the energy sector of
Ukraine. The Strategy declares the necessity of efficient energy use, introduction of energy-saving
technologies, rationalizing of the structure of industry and reducing the share of energy-intensive
technologies. Weak point of the Strategy is that it was approved by the Cabinet of Ministers but was not
accepted by the Parliament. It means that the Strategy is not a Law and has rather advisory and not
mandatory status. In 2011 the up-date of the Energy Strategy of Ukraine was initiated (information on
the status of its acceptance is given below as Programs which are under development and approval).
2. ‘The State Target Program ‘Forests of Ukraine for the period of 2010-2015’ dd. 2009. The program
was approved in September 2009 by the Cabinet of Ministers and foresees the annual construction of
more than 1.5 thousand km of forest roads to provide access to wood resources and to increase the
logging/felling/collection of wood wastes. The effect of the Program is not perceived according to market
operators.
3. ‘The State Target Economic Program of Energy Efficiency and Development of the Production of
Energy from Renewable and Alternative Sources of Energy in the Period of 2010-2015 dd. 2010.
The Program was approved by the Cabinet of Ministers in 2010 and is aimed at the achievement in 2015
of 10% share of renewable energy and alternative fuels in the energy balance, the construction of
facilities for solid biomass and biogas for heat and electricity generation, the commissioning of plants for
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Date: 10 May 2013
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production of biodiesel (80 thousand tons/year) and ethanol (600 thousand tons/year), the realization of
projects for the generation of electricity from biomass. The implementation of the Program goes hardly.
3.2.2 Programs under development
The Programs which are under development or approval stage:
1. The National Projects ‘Energy of Biogas’ and ‘Energy of Biomass’ dd. 2012. State Agency for
Investment and National Projects of Ukraine is preparing the new projects ‘Energy of Biogas’ and
‘Energy of Biomass’ being a part of the National project ‘Energy of Nature’. The main goal of the projects
is the demonstration on the state level of the economic and environmental advantages of biogas and
biomass projects realization and development of recommendations to legislation regarding the intake of
bio methane into the gas transportation system of Ukraine.
2. ‘The Draft Energy Strategy of Ukraine till 2030’ dd. 2011. In 2011 the updated version of the Energy
Strategy of Ukraine till 2030 has been developed. The new Strategy envisages a major structural shift in
the energy facilities by 2030: the share of the renewable energy is expected to increase from 6% to 10%.
However, the bioenergy is not present at all in the up-dated Strategy. Market experts explain that fact by
the lobbying of interests of fossil fuel resources and other sectors of RES (wind, solar and hydro). The
Strategy is not accepted yet.
3. ‘The National Strategy for Heat Supply to Population Aggregates of Ukraine till 2030’ dd. 2012.
Ministry of Regional Development and Construction of Ukraine have to develop a Draft Strategy and
submit it to the Cabinet of Ministers until 1 January 2012. According to the Strategy goals it is foreseen
to reduce by 30% the use of natural gas for production of heat and hot water by means of upgrading the
boilers and utility networks, calculation of heat energy while its production, transportation and
consumption, the partial use of alternative energy sources (biogas, biomass, solar and wind energy).
4. ‘The Concept of the State Target Economic Program ‘Bioethanol’ dd. 2012. The State Enterprise
‘Ukrspirt’ and Ministry of Agriculture Policy and Food of Ukraine are involved in development of the
Concept. The concept is currently under consideration of the Cabinet of Ministers. If the Concept is
approved, it will give the start for development of the State Target Economic Program ‘Bioethanol’. The
Concept prescribes the measures which will create conditions for the development of alternative fuels in
Ukraine under state support, reduction of Ukraine's dependence on imported petroleum, rejuvenation of
several enterprises of alcohol industry.
3.3 Associations
For short period of time quite a number of associations and other non-profit organizations have been appeared in
the sector. Sector organizations are presented in Annex 1.
3.4 Events and exhibitions
Main sector events and exhibitions are listed in Annex 2 to this Report.
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3.5 Legislation
Among recently accepted legislative acts which provide practical benefits for alternative and bio energy
producers:
1. Law of Ukraine No. 5485-VI dd. 30.12.2012: ‘Amendments to the Law of Ukraine on Electricity
Industry (for stimulation of production of power from the alternative energy sources)’
The Law was signed by the President of Ukraine on 30 November 2012 and concerned the two important issues
as shown in Table 21.
Table 21. Law of Ukraine No. 5485-VI dd. 30.12.2012
1) ‘green’ tariffs;
The Law introduces the ‘green’ tariff on electricity generated from biogas and components of
biodegradable solid household waste. The ‘green’ tariff coefficient for biogas will be similar to that of
biomass – 2.3.
The ‘green’ tariff will be applicable to companies that will launch the biogas power plants from April 2013.
2) size of local
component
The size of the local component (technologies, equipment, construction materials used for construction)
for power generation facilities that produce electricity from wind, solar and biomass, is set at the level of:
not less than 30% for the construction which commenced after 1 January 2012 and completed
(put in operation) after 1 July 2013
not less than 50% for the construction which commenced after 1 January 2012 and put in
operation after 1 of July 2014.
The size of the local component for power generation facilities that produce electricity from biogas:
not less than 30% for the construction which commenced after 1 January 2012 and put in
operation after 1 January 2014
not less than 50% for construction of which commenced after 1 January 2012 and put in
operation after 1 January 2015
Facts about ‘green’ tariffs in Ukraine:
Goal of the ‘green’ tariff is to enable a diversity of technologies (wind, solar, biogas, etc.) to be
developed, providing investors a reasonable return on their investments.
Under the ‘green’ tariff the eligible renewable electricity generators (which can include homeowners,
business owners, farmers, as well as private investors) are paid a cost-based price for the renewable
electricity they produce.
In Ukraine, ‘green’ tariff was introduced by legislation in 2009 for the period until 2030.
Difference between regular and ‘green’ tariff: regular tariff – 5.38 eurocents per kWh.
A unit of renewable energy costs a lot more than a kWh of conventional energy (Table 22).
Table 22. ‘Green’ tariff for electricity from RES acting in Ukraine
RES
Coefficient (for facilities
commissioned till
31.03.2013)
Coefficient (for facilities
commissioned till
31.12.2014)
‘Green’ tariff,
euro cent /
kWh
‘Green’
tariff,
kop/kWh
Sun (max) 4.8 3.5 46.53 505.09
Sun (min) 4.4 3.7 42.65 463.0
Biogas (from agricultural raw
materials and components of
biodegradable solid household
- 2.3 12.39 134.46
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RES
Coefficient (for facilities
commissioned till
31.03.2013)
Coefficient (for facilities
commissioned till
31.12.2014)
‘Green’ tariff,
euro cent /
kWh
‘Green’
tariff,
kop/kWh
waste)
Biomass* 2.3 2.3 12.39 134.46
Wind (max) 2.1 - 11.31 122.77
Wind (min) 1.2 - 6.46 70.15
Hydro (up to 10 MW) 1.2 1.2 7.75 84.18
Source: Law of Ukraine No.1220-VI (2009), Law of Ukraine No. 5485-VI (2012)
Note: In this Law, the term ‘biomass’ is determined as renewable non-fossil biological material of organic origin
as waste of forestry and agriculture (crops and livestock), fisheries and technologically related industries
undergoing biological decomposition, as well as part of industrial or household waste able to biological
decomposition. Thus, energy crops such as reeds, miscanthus, etc. do not fall under ‘green’ tariff regulation.
2. Law of Ukraine No. 1391-VI dd. 21.05.2009: ‘Amendments to Certain Laws of Ukraine as to
Support of Biofuels Production and Use’
The Law establishes the legal framework for production and consumption of biological types of solid, liquid and
gaseous fuels in Ukraine and imposes:
mandatory step-by-step increase in the production and use of biofuels and mixed motor fuels. (Still the
exact volume of production and use of biofuel and mixed motor fuel is not defined by the law);
mandatory certification for biofuels intended for implementation as commodity products;
profit derived of biofuel sale is exempted from taxation starting from 1 January 2010 for 10 years;
equipment for the biofuel industry, which is not produced in Ukraine, is imported at zero rate of value
added tax;
biofuels can be produced by any business enterprise. Previously, such fuels could be produced only by
state monopoly ‘Ukrspirt’;
excise duty on gasoline with ethanol additives has been reduced from 60 to 30 EUR/ton since 2007;
zero rate of excise duty on fuel bioethanol domestically produced.
3. Law of Ukraine No. 4970 dd. 17.07.2012: ‘On Amendments to Certain Laws of Ukraine for
Production and Use of Transport Fuel with Content of Bio Components’
The Draft Law was elaborated by the Ministry of Energy and Coal Industry of Ukraine stipulates that:
recommended rate of ethanol in gasoline motor, which are produced and/or are sold in the territory of
Ukraine will be in 2013 at least 5% (by volume), since 2014-2015 its required content should be not
less than 5%, and since 2016 - at least 7%.
production of transport gasoline mixed and adding (mixing) ethanol and/or bio-components will be
carried out by enterprises accepted by the Cabinet Council on the proposal of the central executive
body that provides implementation of state policy in the fuel and energy sector.
conversion of state owned unprofitable distilleries (37 plants) for the production of ethanol.
Other lows regulating the sector of bioenergy and biofuels are more of descriptive nature and do not provide any
practical stimuli to the bioenergy producers:
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Law of Ukraine No. 1391-XIV dated 14.01.2000 ‘On alternative types of liquid and gas fuels’.
Law of Ukraine No. 1775-III dated 01.06.2000 ‘On licensing of certain types of economic activities’.
(With the latest amendments the trade with liquid fuel from biomass and with biogas is subject to
licensing. Till October 2010 production and storage of biogas and liquid fuel from biomass were subject
to licensing as well. The respective draft of licensing conditions has been elaborated by the Ministry of
Fuel and Energy of Ukraine, but has not been approved yet).
Law of Ukraine No. 3032-III dated 07.02.2002 ‘On state regulation of production and turnover of ethyl,
cognac and fruit alcoholic beverages and tobacco products’.
Law of Ukraine No. 555-IV dated 20.02.2003 ‘On alternative energy sources’.
Law of Ukraine No. 2509-IV dated 05.04.2005 ‘On combined heat and power generation (CHP)’
Law of Ukraine No. 2633 dated 02.06.2005 ‘On heat supply’.
Law of Ukraine No. 760-V dated 16.03.2007 ‘On amendments to the Law of Ukraine on promotion of
energy efficiency measures’.
Number of regulations and governmental decrees called for replacement of traditional fuel with involvement of
R&D effort in renewable energy:
Resolution of the Cabinet of Minister of Ukraine No 576-р dd. 28.12.2005 “On Approval of the Concept
of Biodiesel Production Development Program for the period to 2010” and the Resolution of the
Cabinet of Ministers No 1774 dd. 22.12.2006 “On Approval of the Diesel Biofuel Production
Development Program” are in force. (It is provided that normative acts directed at promotion of rape
growing and construction of plants for production of biodiesel shall be elaborated. The program also
provides for elaboration of respective state standards in the sphere of production and use of alternative
fuel types, in particular biodiesel with high ecological and technical qualities).
Resolution the Cabinet Council No. 126-p dated 19.02.09 ‘Special features regarding connection of the
units producing electricity from the alternative energy sources to power grids’.
Resolution the Cabinet Council No. 256-p dated 19.02.09 ‘First priority measures to reduce natural gas
consumption during the period till 2010’.
Resolution the Cabinet Council No. 217-p ‘Organizational issue for production and use of biogas’ and
Resolution of the Cabinet Council No. 223-р dated 12.02.09 ‘On creation of register for resources
‘Suitable for biogas production’. (With these instructions the Cabinet Council of Ukraine obliged the
respective authorities to develop and implement pilot projects on biogas production, to elaborate and
approve state standards for biofuel, to regulate issues of lease of state-owned land plot as per
simplified procedure for placement of a fuel station selling liquid and/or gas biofuel and mixtures with
content of pure biodiesel over 80%).
Resolution the Cabinet Council No. 276-p dated 12.02.09 ‘Approval of conception of the state scientific
and technical program target. Production and utilization of biological fuels’.
Resolution of the Cabinet Council No. 159-p of 11.02.09 ‘Some issues of state policy implementation in
the field of efficient use of fuel and energy sources’.
Resolution of the Cabinet Council No. 102-p dated 04.02.09 ‘Measures concerning the use of the
alternative energy sources’.
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3.6 Taxation
The legislation of Ukraine provides a number of preferences as to taxation of activity connected to development,
implementation and use of alternative energy.
3.6.1 Company’s profit tax
The Tax Code of Ukraine stipulates that there shall be no income tax for 10 years for:
Income of enterprises of the electric power industry (class 40.11 group 40 KVED DK009:2005) gained
out of sale of the electricity produced with the use of renewable energy sources (such as wind, solar,
geothermal, wave and tidal, hydro, and biomass energy, landfill gases, sewage facilities gases,
biogases);
Income of biofuel producers from sales of biofuel;
Income of mechanisms and equipment producers as determined by Article 7 of the Law of Ukraine ‘On
Alternative Fuel Types’ intended for production and reconstruction of technical and transport means,
electrical devices which consume biofuel gained out of sale of such mechanisms and equipment
produced in Ukraine;
Income of enterprises exercising co-generation activity and/or producing heat energy using biofuel;
Income of enterprises gained out of extraction and use of coal bed methane;
No taxation is either stipulated for 80% of income of enterprises gained out of sale in Ukraine of own-
produced goods according to the List as approved by the Cabinet of Ministers of Ukraine:
Equipment working on renewable energy sources;
Materials, raw materials, equipment and components which will be used for production of
energy out of renewable energy sources;
Equipment for production of alternative fuel types.
Funds released due to tax allowances shall be directed by the tax payer for increase of
production volumes pursuant to the procedure as stipulated by the Cabinet of Ministers of
Ukraine.
3.6.2 Value added tax
No VAT shall be applied to the import of:
Equipment consuming renewable energy sources, equipment and materials for production of
alternative fuel types or for production of energy out of renewable energy sources;
Materials, equipment, components used for production of:
Equipment consuming renewable energy sources;
Materials, raw materials, equipment and components which shall be used for production of
alternative fuel types or for production of energy out of renewable energy sources.
Import to Ukraine of goods stated in this paragraph is free of taxation if such goods are used by the tax payer for
its own production and if identical goods of equivalent quality are not produced in Ukraine.
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The list of such goods with codes pursuant to the Ukrainian classification of foreign economic activity goods is
stipulated by the Cabinet of Ministers of Ukraine (the Resolution of the Cabinet of Ministers of Ukraine dd. 14
May 2008 No. 444 ‘On import to the customs territory of Ukraine of energy-saving materials, equipment and
component parts’).
The list of equipment includes about 1,000 items of various type of materials, equipment and components parts
such as mini heat and power plants, turbo-generators, gears, pups etc.17
In addition to this, temporarily, till 1 January 2019 no VAT shall be applied to the following transactions:
Delivery of mechanisms and equipment determined by Article 7 of the Law of Ukraine ‘On Alternative
Fuel Types’ in the territory of Ukraine;
Import under codes of the Ukrainian classification of foreign economic activity goods determined by the
Law of Ukraine ‘On Alternative Fuel Types’ of mechanisms and equipment intended for reconstruction
of existing and construction of new enterprises for production of biofuel and for production and
reconstruction of technical and transport means consuming biofuel, if such goods are not produced and
have no equivalent in Ukraine, as well as of technical and transport means, including self-moving
agricultural machinery consuming biofuel, if such goods are not produced in Ukraine. Import procedure
for the mentioned mechanisms and equipment, technical and transport means shall be determined by
the Cabinet of Ministers of Ukraine.
3.6.3 Customs dues
According to the Law ‘On unified customs tariff’ the following equipment and materials (as well as materials,
installations and equipment used for production of such equipment and materials) are not subject to custom
charges, provided they are used by the tax payer for its own production and if identical goods of equivalent
quality are not produced in Ukraine:
equipment working on non-conventional and renewable energy sources;
equipment and materials for production of alternative fuel types (goods) imported to the customs
territory of Ukraine by national companies.
By violation of requirements as to proper use of mentioned goods the subject of the foreign economic activity is
obliged to pay customs dues in order and amount stipulated by the law.
Customs (export and import) duties for the products of biomass processing industry are presented in Table 23.
The mandatory certification and phyto-sanitary control are applied to all oil and fat products.
Table 23. Customs (import/export) duties for biomass products in Ukraine
Code Article Customs
duties, %
1201 Soybean 0
12050090 Rapeseed, other 0
1206009 Sunflower seed, other 10
1207 Other oil seeds 5
15071010,
15079010 Soy oil, fresh, refined or not refined for industrial or technical use (not in food production) 5
17
The link to the full text of the Resolution with the list of equipment: http://zakon.nau.ua/doc/?uid=1149.459.23&nobreak=1
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Code Article Customs
duties, %
1508 Peanut oil, for industrial or technical use (not in food production) 5
15121110,
15121910
Sunflower oil, fresh, refined or not refined for industrial or technical use (not in food
production) 8,10
1514 Rapeseed oil 5
15151910 Linseed oil, other for industrial or technical use (not in food production) 5
15152110 Maize oil, fresh for industrial or technical use (not in food production) and other 5
15152910 Maize oil, other for industrial or technical use (not in food production) 20
1213 Straw and chaff of cereals, unworked, whether or not broken, ground or not ground, pressed
or in the form of pellets 20
4402 Charcoal (including charcoal from shells or nuts), whether or not agglomerated 0
440130
Logs, twigs, branches, wood chips or shavings, sawdust, debris, whether agglomerated or not
agglomerated in the form of logs, briquettes, pellets etc.
0
Source: State Customs Service of Ukraine
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4 Standardization and certification
4.1 National standards
The State Committee of Ukraine on Technical Regulation and Consumer Policy is the central executive body
responsible for standardization.
Until recently, Ukraine didn’t have any single national standard for biomass products. Manufacturers worked on
individually developed technical specifications (TU).
Since 2009 the development of national standards on biomass products became livelier. Several technical
committees of the State Committee of Ukraine on Technical Regulation and Consumption Policy, the Ministry of
Agrarian Policy and Food of Ukraine and a number of institutions were engaged in the development of the
national standards.
The national standards (DSTU) harmonized with international standards are currently available for solid fuels and
bioethanol:
Solid biofuels:
DSTU 7123:2009 Sunflower husk. Technical specifications.
DSTU 7124:2009 Sunflower husks pressed granulated. Technical specifications.
DSTU-P CEN/TS 15149-2:2009 Solid biofuel. Methods of definition of granulometric composition. Part
2. Method of use of vibratory sieve with holes of 3.15 mm and above.
DSTU-P CEN/TS 15149-3:2009 Solid biofuel. Methods of definition of granulometric composition. Part
3. Method of use of vibratory sieve.
DSTU-P CEN/TS 15289:2009 Solid biofuel. Determination of total sulfur and chlorine composition
(CEN/TS 15289:2006, IDT).
DSTU-P CEN/TS 15290:2009 Solid biofuel. Definition of basic components (CEN/TS 15290:2006,
IDT).
DSTU-P CEN/TS 15296:2009 Solid biofuels. Calculation of composition according to different bases.
Biodiesel:
DSTU 6081:2009 Standard Motor fuel. Methyl esters of fatty acids, fats and oils for diesel engines.
Specifications are valid as of March 2010. It complies with the EN 14214:2003 standard.
The national standards for biogas and bioethanol are not developed. These products are manufactured on the
basis of Technical Specifications (TU) of producers.
Bioethanol production in Ukraine is guided by:
TU U 24.6-14289688-001:2009 ‘Motor fuel Е-80-105’
TU U 24.6-14289688-002:2009 ‘Component of motor fuel Е-80-105’
TU U 24.6-35523958-001:2009 ‘Biological motor fuel Е85’
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4.2 International standards
A lot of Ukrainian biomass feedstock and solid biofuels are exported to EU; in connection with that Ukrainian
companies are obliged to comply with European standards.
For registration of export shipments Ukrainian companies (mainly traders) certify the quality and sustainability of
biomass products in compliance with international standards as stated in Table 24.
Table 24. Type of biomass and international standards applied
Type of biomass Standards/certificates
Solid biofuels (wood products and agricultural residues,
including certification of the quality of wood pellets and
chips)
EN 14961-2 & EN 15234-2
NTA 8080
DIN, DIN Plus
Energy crops (rapeseed, corn, sunflower, soya) RED18
certificate
Residues and waste used in power generation
Source: data of market operators
Since 3 March 2013 the EU Regulation # 995/2010 comes into force which should prevent the entry into EU
markets of wood and any products and materials from wood obtained from illegal harvesting.
The certification bodies accredited for biomass certification in Ukraine are shown in the Table 25 below.
Table 25. Certification bodies of Ukraine for biomass products
Certification companies Address Tel./Fax E-mail Web-site
Production Association
UKRUGLEGEOLOGIYA, Ministry of
Coal Industry of Ukraine Department
of laboratory research
83003, Donetsk,
Lenin ave, 91
Tel. +38 062
300 15 34
Fax: +38 062
385 99 13
Ukrainian State Scientific-Research
Institute of Coal Chemistry - UHIN,
Ministry of Industrial Policy of Ukraine
61023, Kharkov.
Vesnina str., 7.
Tel / Fax: +38
057 704 13
19
+38 057 700
69 06
http://www.ukhin.org.ua
CCI Ukraine Ltd., A subsidiary of
Australian Company «CCI Holding
Ltd.
91055 Lugansk,
Karl Marx str., 3
Tel. +38 0642
34 44 50; +38
0642 34 44
58;
Fax:.+38
0642 50 10
04
http://www.cci.net.ua
SGS Ukraine, the Regional Office in
Dnepropetrovsk
Dnepropetrovsk,
Blagoev str., 31
Tel. +38 0562
335 635/36,
http://www.ua.sgs.com
18
The EU Renewable Energy Directive (RED)
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fax: +38 056
770 00 70
Source: Ukrainian Biomass Fuels Market Analysis
5 Investments in the sector
Ukraine appeared on the 2011 Ernst & Young Renewable Energy Country Attractiveness Indices, providing to be
an attractive emerging market for renewable energy.
The World Bank disbursed 30-year loan of USD 200 million for energy efficiency investment projects in industrial
enterprises, municipalities and energy utility service companies in Ukraine.
The European Bank for Reconstruction and Development (EBRD) considers renewable prospects of Ukraine as
considerable and provides the credit lines and partial support of the technical assistance projects in energy
efficiency and renewable energy sectors (USELF program).
Most of investments are directed/planned to be directed to:
biogas plants for heat and power generation (due to recently accepted amendment to legislation
concerning the ‘green’ tariff for electricity from biogas);
solid fuels production (because of increasing demand from EU);
heating on solid biomass projects in municipal and agro-industrial sectors (due to constantly increasing
prices for gas);
bioethanol production (caused by recent legislation initiatives).
Table F in Annex 3 represents the sector investments recently announced by the market operators.
6 Financing the sector
Bioenergy equipment especially foreign one is rather expensive. In most cases, only large companies become
the clients of big international equipment producers. Ukrainian equipment is cheaper than foreign equipment
while the latter is more reliable.
For the most bioenergy projects the equipment from local suppliers is purchased. The main reasons for that:
Low buying capacity and orientation to low quality segment of final product;
Not enough foreign suppliers able to provide service and maintenance on site.
However, possibilities to purchase the foreign equipment and extend the payment for several years using bank or
state credits exist in Ukraine. Ukrainian/international banks can propose special trade financing and credit
programs (such as UKEEP, USELF etc.).
Trade financing is usually applied to short-term programs under one year while credit programs are usually
applied to long term programs which can take up to 5 years. Average standard interest rates are 18-25% in
Ukrainian hryvnias and 10-18% in Euro.
In addition to bank financing, the Ukrainian government offers state-supported programs for agricultural
producers. In case that domestic equipment is bought for pellet production in Ukraine, a company can get a loan
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from ‘Ukragroleasing’ with a reduced interest rate of 7% in Ukrainian hryvnias. UAH 80 million were allocated to
‘Ukragroleasing’ in the State Budget of 2012.
There is also possibility to get 30% of the total equipment cost paid by the Ministry of Agrarian Policy and Food of
Ukraine. Interest rates for loans taken to buy bioenergy equipment can also be partially compensated.
However, the access to state funding is not an easy process and applicants have to undergo a selection process.
Selection criteria of such state competitions are often not transparent and selection can be arbitrary according to
market operators.
Therefore, many agricultural producers have to use bank credit programs or own funds to finance their business
(i.e. purchase of the equipment) and do not rely on the state support.
7 Technology and equipment
Ukraine has high potential for introduction of energy efficiency and alternative energy technologies and
equipment as its energy efficiency is only one-third of the average for industrialized countries.19
Because of lack of financing the majority of bioenergy companies of Ukraine prefer to buy the cheaper equipment
of local production or modernized soviet-type technologies instead of investing into high-quality equipment.
Indeed, a lot of the equipment is produced or assembled in Ukraine.
As of today, there are about 20 factories in Ukraine that produce boilers for burning waste wood and wood
biomass. Companies ‘Zhytomirrempischemash’, ‘Roek-Lviv’, ‘Kyivavtomatika’, ‘Kaf’, Volyn-Calvis’,
‘Ecoenergokharkiv’, ‘Ecoenergoproekt’, ‘Dozamekh Ukraine’ and others produce industrial and domestic boilers
and gas generators of various capacities.
Ukrainian company ‘Turboatom’ produces steam turbines for bioenergy projects. The company is trying to redo
their 6 MW steam turbine to 1 MW. Because of the bulkiness of this machine it is difficult to compete with
Russian counterparts, in particular, low-power steam turbines, which are produced by Kaluga Turbine Plant.
Similar equipment also comes from the Czech Republic, Germany, India and China.
Production of biodiesel installations is arranged in Ukraine on ‘Ukrstoymash’, ‘BiodieselDnept’, ‘Special
technologies’, ‘Trend’, ‘Technosouz’.
Several foreign companies: Zorg Biogas AG (Switzerland), ANDRITZ FEED&BIOFUEL A/S (Denmark), STULZ
H+E GR. PPE (Germany) are supplying equipment for Ukrainian agricultural bio projects.
There is a large special group of suppliers - small Ukrainian companies which represents the interests of foreign
equipment suppliers.
Analysis of proposals/announcements on biomass business portals (e.g. Waste World, Ukrainian Biofuel Portal,
AllBiz Ukraine) showed the types of biomass processing equipment which is supplied/demanded on the market
(Figures 20 and 21 respectively).
19
http://www.keepeek.com/Digital-Asset-Management/oecd/finance-and-investment/competitiveness-and-private-sector-development-
ukraine-2011_9789264128798-en
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Figure 20. Supply and demand of biomass processing equipment, number of announcements
Source: http://waste.ua/, http://pelleta.com.ua, http://www.ua.all.biz
Taking into account that on the market there is a lot of offers of wood and agricultural wastes processing
equipment (boilers and palletizing equipment) for small-scale industrial and domestic purposes it will be
challenging for the Dutch companies to compete in this type of hardware with Ukrainian and other foreign
producers of equipment.
More opportunities are available to Dutch suppliers of complex automated technology/solutions for
industrial/municipal biomass processing and in the segment of equipment for agro-industrial equipment which
only starts developing in Ukraine.
Figure 21. Supply of equipment of biomass utilization, number of announcements
http://webcache.googleusercontent.com/search?q=cache:http://www.ua.all.biz/en/
Biogas installations, biomass feedstock collection/handling/storage technologies and equipment, fluidized bed
boilers and other equipment as stated in the Table 26 represents a lot of sales opportunities for the Dutch
entrepreneurs.
Table 26. Potential market size of biomass processing and bioenergy equipment
Type of equipment Market size, units*
Heat on biomass
Heating boilers on wood biomass 0.5-10 MWth 900
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Industrial boilers on wood biomass 0.1-5 MWth 400
Domestic boilers on wood biomass 10-50 kWth 35,000
Farms boilers on straw 0.1-1MWth 10,000
Heating boilers on straw 1-10 MWth 1,000
Farm boilers on stems of corn and sunflower 0.1-1 MWth 9,000
Heat boilers on peat 0.5-1 MWth 800
Atmospheric fluidized bed boilers -
Heat and power
Mini-heat and power stations on wood biomass 10
Mini-heat and power stations on straw 10
Biogas
Small biogas installations 200-600 m3 2,253
Farm biogas installations 600-3,000 m3 827
Large biogas installations >3,000 m3 4
Co-generation installations on biogas from manure and other agricultural wastes -
Biomass collection/handling
Straw balers -
Tree chippers -
Biomass crushing and grainer machines -
Co-firing equipment
Equipment for co-firing of biomass with coal -
Bioethanol process equipment
Installation of dehydration etc. -
Equipment (laboratory) for control of alcohol-containing motor fuels -
Equipment for blending ethanol with gasoline -
* Estimation of Scientific Engineering Centre ‘Biomass’ Ltd.
Source: Open sources of information, opinion of market experts
The right approach for the Dutch process/equipment suppliers could be the partnership with international
investors, participation in tenders/projects of financial institutions and cooperation with large Ukrainian
agricultural companies and agro industrial holdings.
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8 SWOT analysis
Strengths
Low competition in the industry;
Large arable lands and crops residues;
Significant amounts of animal wastes;
Availability of wood and agro-industrial wastes;
Relatively cheap price of local biomass feedstock and human resources;
Tax preferences (no VAT and tax on profit for producers of bioenergy and biofuels);
Accepted Low on ‘green’ tariff which enhances production of electricity from biogas;
Accepted Law on adding bioethanol to gasoline which supports domestic consumption of biofuel.
Weaknesses
Natural gas, heat and electricity prices are subsidized for population and municipalities;
Short domestic consumption of bioenergy products;
Not stable supply and absence of long terms contracts for supply of biomass feedstock;
Low production capacities and poor quality of final biomass products;
Large volumes of biomass products are exported as raw material (wood, rapeseeds, sunflower seeds, soya)
and not as final product (bio energy, solid/liquid fuels);
Lack of collection, handling and storage technologies of biomass feedstock;
Lack of the advanced complex biomass processing and bioenergy solutions and equipment;
Underdeveloped wood procurement logistics (roads, transport, equipment, storage);
Lack of financing resources and capital investments;
Seasonal shortage of biomass feedstock supply;
High prices of transportation and logistics services;
Complicated procedure of obtaining the licenses, ‘green’ tariff etc.;
Poor dissemination of information on the advantages of bioenergy;
Lack of qualified personnel in energy efficiency and sustainability.
Opportunities
High external and rising internal market demand for biomass feedstock and final products;
Certification of products to compliance with sustainability requirements of EU (ENplus for ‘domestic’ pellets
and EN-B for ‘industrial’ pellets, Cramer criteria for energy crops, EU Regulation # 995/2010);
Delivery of certified sustainable bioenergy feedstock and products to export markets;
Organizing collection and construction of storage facilities for biomass feedstock and final products;
Support under involvement of favorable financing for bio energy projects;
Transfer of knowledge and expertise in biomass management and processing;
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Supply of complex process solutions, process engineering and equipment maintenance services;
The EU sustainability and energy saving targets (export of Ukrainian biomass feedstock and products);
Credit lines, technical assistance and pilot projects financed by IFIs;
Necessity of wastes processing of the large agro-industrial groups;
Outdated and insufficient capacities of heat and power stations and networks;
70% of heat and power generation facilities operate on traditional fuel;
Upgrading of energy infrastructure and supply of modern equipment (reconstruction of sugar and alcohol
plants for bioethanol production, conversion projects from fossil fuels on pellets, biomass or co-generation
projects).
Threats
Shortcomings of legislation and lack of acting state program and integrated goals and priorities;
Substantially understated goals set in the up-dated Energy Strategy of Ukraine;
Strong lobby in gas, oil and coal industries and lack of it in bioenergy and biofuel;
Problems with sale of electricity from biomass to energy market;
State monopoly in power and heat generation assets and bioethanol production;
Decrease of electricity consumption in EU countries and reduction of fuel consumption by heat and power
plants;
Introduction by EU or other countries of additional measures to protect the internal markets: the new
certification requirements, quotas, etc.;
Growing competition on international solid biofuel market (e.g. Russian producers of wood fuel products)
Risk inherent into agricultural business (adverse weather conditions, high volatility of commodity prices on
crops and biomass feedstock);
Lack of guarantee to consumers of their right to free choice of energy sources.
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9 Opportunities for Dutch SMEs
Ukraine offers a number of opportunities for foreign direct investment along the entire value chain of biomass
processing:
Biomass consultancy and engineering
Feasibility studies, business planning for re-/construction of biomass processing projects;
Bio economy/advising companies and government on bioenergy policy/strategy/plans development;
Support under preparation and running bioenergy projects financed by IFIs;
Advisory under certification of biomass feedstock and products according to EU standards;
Support in organization of sustainable biomass production and logistics chain;
Guidance through (sustainability) certification process of biomass feedstock and products;
Setting up systems for complying/monitoring of sustainable biomass production;
Partner search/co-financing/join ventures in biomass processing;
Energy audits and education programs on energy efficiency for industrial and municipal consumers.
Biomass feedstock supply
Collection, handling and storage technologies and equipment of biomass feedstock (straw balers, tree
chippers);
Specialized logging and timber transportation equipment (mobile crushing machines for wood wastes);
Storage facilities for biomass feedstock (tank, storehouse, silo, pile, in particular - for straw);
Transportation equipment for supply of wastes to processing/utility companies (trucks, tractors, conveyor
belts);
Advanced complex biomass processing and bioenergy solutions and equipment.
Heat on biomass
Industrial and municipal boilers on biomass
Boilers with boiling bed technology
Biogas, Heat and electricity on biogas
Installation and after-sale service of the heating and power equipment on biomass;
Construction of heat and power plants on biogas and biomass and conversion of fossil fuel facilities to
biomass and co-firing;
The design and construction of treatment facilities of livestock farms on the basis of the use of anaerobic
digestion with the use of multicomponent substrates to increase biogas output;
Design and construction of large-scale biogas plants on the basis of fermentation of corn silage or other
green biomass:
for the following production and sale of electricity by ‘green’ tariff;
for the following production of bio methane and its use as a substitute for natural gas.
Solid biofuels
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Date: 10 May 2013
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Design and construction of solid fuel plants for heat and power production and industrial consumers;
Arrangement of production of packed pellets and briquettes for retail chains, stores and municipal heating
systems of EU and Ukraine;
Organization of supply of solid biofuels to export markets (possibilities for traders).
Bioethanol
Quality control system and special equipment (laboratory) for control of alcohol-containing motor fuels;
Installation of dehydration for ethyl alcohol;
Introduction of bioethanol of azeotropic distillation;
Supply of infrastructure for bioethanol plants and equipment for blending ethanol with gasoline;
Ethanol modules at existing gas stations.
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Annex 1 Sector associations
Name of the association Representative Address Description Contact information
Association of alternative fuel and energy market participants (APEU)
Mr. Vitaliy Daviy, President
16B, Shovkovychna str., office. 37
Kyiv, 01024, Ukraine
APEU was established in autumn 2009 and is an
association, whose purpose is to coordinate the activities of enterprises representing the
RES sector for development and efficient interaction with governmental bodies and
agencies. The main task of the Association is to promote the production and use of
renewable fuels and energy in Ukraine, as well as to strengthen the market position
of the Ukrainian manufacturers of specialized equipment and technologies, as well as in
foreign markets, representation of participants’ interests towards government,
international organizations, protection of the participants’ rights and public relations.
Tel.: + 38 044 362 04 90 Fax: + 38 044 253 51 17
[email protected] http://apeu.info/index.php
Association of renewable energy ‘Alternative’
Mr. Vitaliy Kovach, Director
30, Fizkultury str., Kyiv, 03150, Ukraine
Organization promotes the idea of ‘natural energy’ in the society through education, lobbying on
behalf of alternative energy business community, information support and
encouragement. The fields of activities of association cover solar, wind and hydro power,
biogas, biofuels, solid waste, etc. Main goal of the association is to draw attention
of society to the problem of alternative energy and energy efficiency in Ukraine.
Tel.: +380(44) 222-5822 [email protected]
http://www.alternativa.info
/
European-Ukrainian Energy Agency (EUEA)
Mr. Andriy Paslen, Director
Business Centre Eurasia
75, Zhylyanska st., 5th floor, 01032,
Kyiv, Ukraine
EUEA is a non-profit association established in Kyiv
in November 2009. The idea of the association is to become a platform for representatives of
society, economy and science as well as financial service providers and consulting
companies in Ukraine and Europe. The objective is to contribute to exchange of
informational, match of demand and supply in all spheres of renewable energy and energy
conservation technologies, provide support by legislative initiatives. The mission is to
become a central contact partner for energy related issues in Ukraine and to make
a contribution to an ecological and consistent energy policy of Ukraine.
Tel.: +38 044 390 55 33 office@euea-
energyagency.org
http://euea-
energyagency.org/
All-Ukrainian amalgamation ‘Fund of Mr. Igor Krasnozvezdny Association was founded to Tel.: +38 (044) 539 30 70
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Name of the association Representative Address Description Contact information
energy-efficient investments’
Cherkashyn, President
avenue 5, of.47, Kyiv, 03037, Ukraine
promote the idea and best practice in the field of energy efficiency and RES
technologies. The experts of the association analyze legislative initiatives, conduct
expert estimation of activities of state bodies in the energy efficiency sphere and address
respective institutions and organizations with appropriate recommendations. Association
is helping to find investors for energy efficiency projects in Ukraine.
Fax: +38 (044) 572 69 79 http://energoeffect.org.ua/
Ukrainian association of alternative solid fuels
Mr. Ivan Nadiev, President
18/24, Dmytrivska str., 5th floor, room.
7. , Kyiv 01054
Ukraine
Ukrainian association of alternative solid fuels is a nonprofit organization created
to unite pellet producers in Ukraine to the industry as a whole. The main objectives of
the creation of the association are: developing a common export policy, formation of a
pool of producers to enter the direct European buyers, promoting the formation and
development of the internal market of solid alternative fuels in Ukraine, participation in
policy-making in the field of alternative solid fuels in Ukraine.
Tel.: +38(044) 482-09-64 Fax: +38(044) 482-09-64
http://www.uavatp.org/
Kiev International Energy Club «Q-club»
Mr. Oleksandr Todyichuk, President
Artema str., 60, office 719-720, Kyiv,
Ukraine
The club unites the experts, politicians, businessmen, diplomats of national and
international levels and is a debatable platform for discussion of the important
problems of a fuel and energy complex of Ukraine. Analyses and forecasts of development
of the energy market are promulgated in «Q-club» with the assistance of leading mass-
media, for the purpose of formation of the state energy strategy, energy storage and
energy efficiency programs. The club puts as an objective to get the status of a public
advisory body of the government, parliament and the President in questions of
formation of a policy in RES sphere, and also to promote creation of positive image of
Ukraine in the international energy societies.
Tel.: +38 (044) 484-04-44 Fax: +38 (044) 484-04-44
http://www.qclub.org.ua
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Name of the association Representative Address Description Contact information
Ukrainian Bioenergy Association
Mr. Georgii Geletukha,
Chairman of the
Board
2 A, Zheliabova str., Kyiv, office 116
The mission of the association is to create a common platform for cooperation on bioenergy
market of Ukraine in order to ensure the most favorable business environment and
accelerated development of bioenergy market and sustainable development of
bioenergy sector. Main directions of activities are to influence the legislative
activities in the energy sector of Ukraine in order to strengthen the position and accelerate
development of bioenergy, to impact on policy documents in the energy sector of Ukraine
(public and industrial programs, the Energy Strategy etc.) and to influence development of
state and sectorial standards and norms required for bioenergy development.
Tel.: +38 (044) 456-94-62 Fax: +38 (044) 453-28-56
http://www.uabio.org
Institute of Renewable Energy of the National Academy of Science of
Ukraine
Mr. Nver Mkhitaryan,
Director
20 A, Chervonogvardijska
str., Kyiv, 02094,
Ukraine
Institute founded with the goal of further development and coordination of scientific
researches in the field of RES and assistance under the use and implementation of the
results of researches. The Institute of Renewable Energy of NAS of Ukraine includes six
research departments: complex energy systems, solar energy, wind energy, small hydro,
geothermal energy, bioenergy sources. The Institute is in fact a national coordinator of the
scientific efforts of the industry and a partner of the State Agency for Energy Efficiency
and Energy Saving of Ukraine within the framework of scientific cooperation and
participation in the development of strategic plans and scientific support of
government programs and projects.
Tel.: +38 (044) 206-28-09 Fax: +38 (044) 206-28-09
http://ive.org.ua/
Association of heat and power
engineering companies of Ukraine
Mr. Stanislav
Zakharov, Director
4/7, Tsytadelna str.,
office 2, Kyiv, 01015, Ukraine
It is a union of producers and
engineers of heat and power equipment. Main goals of association are representation
of interests and promotion of business activities of the companies-members. For this
purpose the annual Conferences on heat and power engineering and regular
Technical meetings are conducted mutually with State Mining Supervisory Service and
Industrial Safety and State Agency of Energy Efficiency and Energy Saving of Ukraine.
Tel.: +38 (044) 280-34-64
Fax: +38 (044) 254-26-95 [email protected]
http://www.ateku.org.ua/
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Name of the association Representative Address Description Contact information
Ukrainian association of producers of alternative motor fuels
‘Ukrbiopalyvo’
Mr. Pavlo Klymets, President
2а, Mechnykova str., Kyiv, 01023, Ukraine
Newly established association founded in 2012 by the large private producers of liquid
biofuels: Agro-Nafta Ltd. and BioHim group Ltd. to promote the quality standards of biofuels
and protect the interests of the companies of ‘green’ fuel the sector.
Tel.: +38 044 3830270 Fax: +38 044 2553371
http://ukrfuel.org/
Netherlands Ukrainian Sustainable Energy Platform (NUSEP)
Mr. Igor Savelkouls,
Chairman of the Board
4, Hrushevskoho str., office 401,Kyiv,
01001, Ukraine
Netherlands-Ukrainian Sustainable Energy Platform
(NUSEP) - Association of Dutch organizations offering technology solutions and
equipment for the implementation of projects in the field of energy efficiency in
housing and industry. NUSEP provides Ukrainian organizations with free of
charge effective access to the Dutch technology, equipment and best practices
development projects.
Tel.: +38 (044) 492 7075 Fax: +38 (044) 492 7075
[email protected] http://new.nusep.org/
Association "Ukrainian Pellet Union" Mr. Mykola
Kolomyichenko, Director
n/a "Ukrainian Pellet Union" was
created in 2012 by the European Pellet Consulate, and in accordance with the
requirements of the EU to establish a national body with the authority of certification
biofuels according to new standards EN plus. Association "Ukrainian Union Pellet" is a
non-profit organization. Association working on three programs biofuels market development in Ukraine - is
industrial program, logistics and program certification.
n/a
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Annex 2 Sector events and exhibitions
No. Event name Date Location Description Website
1. International congress
‘Top Grain’
November Kyiv, SE
‘Ukrayinskyy Dim’
The event brought together about 300
participants, 200 of which were managers and specialists of the leading agricultural companies, the
other part — the representatives of commercial companies, government, financial institutions and mass media.
http://cropcongress.org/2
011/eng/#hMenu
2. AgroAnimalShow
February Exhibition center ‘KyivExpoPlaza’ 2-b, Saliutna st.,
04111 Kyiv Ukraine
Agro Animal Show is an event aiming at promotion of modern technologies into livestock breeding sector, offering
wide range of agricultural machinery and equipment, newest scientific and technical developments for farms of
different patterns of ownership and size, professionally dealing with livestock products manufacturing. The
exhibition represents the main directions of innovative development of livestock sector, being a unique
information and trade platform.
http://www.animal-show.kiev.ua/en
3. INTERAGRO
February Exhibition center
‘KyivExpoPlaza’, 2-b, Saliutna st.,
04111 Kyiv,
Ukraine
Largest annual agro-industrial forum
taking the leading place in the agricultural complex of Ukraine as a complex of innovative solutions in
different spheres of agriculture. The exhibition is supported by the Ministry of Agrarian Policy and Food of
Ukraine, Ukrainian Agrarian Confederation, Ukrainian Agribusiness Club, Ukrainian Academy of Agrarian Sciences, Government of France,
Ministry of Economy of the Federative Republic of Germany, the embassies of Austria, Argentina, the Netherlands,
Poland, Russia, etc. Among the products represented at the exhibition, there are agricultural machinery,
seeds, agricultural chemistry, bioenergetics, IT and agricultural services, equipment, spare parts,
agricultural economy and agricultural production management, agricultural technologies, etc.
http://interagro.in.ua/eng/
about-fair.html
4. UKRAINE AGRARIAN
March Expocenter of Ukraine
1, Glushkov Ave., 03680 , Kyiv, Ukraine.
Promotion of agricultural production in Ukraine and competitive economic
system in the agrarian sector; Information platform for professionals of the agricultural sector on
innovations in various fields of agriculture, which are offered by domestic and foreign science, with
modern machinery and equipment and new technology, varieties and species that provide all areas of intensification
of agricultural production. Promotion of the investment in the domestic agricultural sector, incl. presentation of
investment proposals and projects
http://www.expocenter.com.ua/en/exhibitions%202
012/ua_agrarna%20%20/info/
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No. Event name Date Location Description Website
5. The International Agroindustrial Fair AGRO
September Expocenter of Ukraine
1, Glushkov Ave., 03680 , Kyiv, Ukraine.
The largest and most promising state-level event in agricultural sector of
Ukraine with domestic and foreign participants in all agricultural sectors,
food processing and fishing industries,
agricultural engineering industry has been increased. The following venues
will be held in the Exhibition
framework: International specialized exhibition of agricultural
machinery, equipment and spare parts, irrigation equipment,
mechanization of agricultural
production, food engineering, equipment for livestock and poultry,
fodder production,
etc. ExpoAgroTech-2012 International specialized exhibition of automation,
management, alternative energy, GPS and GIS technology Hi-
Tech АГРО-2012
International specialized exhibition of energy plant
Biofuels-2012
International specialized exhibition of animal
industries and veterinary
medicine ANІMAL`EX-2012 International specialized exhibition MUSHROOM
INDUSTRY-2012
http://www.agroexpo.com.ua/Eng/Main.php
6. ECO Expo
October International Exhibition
Center (IEC), 15 Brovarsky Ave,
02660, Kiev,
Ukraine
Environmental and organic products presented on the Ukrainian market
and new products that are only entering the market.
http://ecoexpo.expoua.com/en/
7. ANIMAL FARMING UKRAINE
October - November
International Exhibition
Center (IEC), 15 Brovarsky Ave,
02660, Kiev,
Ukraine
Dedicated exhibition for animal farming that is supported by Ministry
of Agrarian Policy of Ukraine, Committee on Agrarian Policy and Land Relations of The Verkhovna
Rada of Ukraine, Association of Farmers and Private Landowners of Ukraine, Ukrainian Agrarian
Confederation.
http://www.animalfarming.com.ua/
8. IX International AGROFORUM`2012
November International Exhibition
Center (IEC), 15 Brovarsky Ave,
02660, Kiev,
Ukraine
Domestic and foreign agricultural appliances of large, medium and low-
power capacity, equipment and spare parts; reclamation and sprinkling equipment, drip irrigation systems,
equipment for post-harvest handling of grain, separators, dryers, the modern technology of crops cultivation,
equipment for processing agricultural products, seeds and seed production systems, horticulture, agricultural
chemistry, veterinary medicine, technology and equipment for feed production, feed, feed additives and
the dietary supplements for animals and birds, agroecology, and energy-and resource-saving technologies.
http://agroforum.expoua.com/en/
9. Grain Tech Expo
November Exhibition center ‘KyivExpoPlaza’ 2-b, Saliutna st.,
The biggest agro-industrial forum. Complex of the innovative solutions in different stages of production, storing,
http://grainexpo.com.ua/en/about-the-project.html
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No. Event name Date Location Description Website
04111 Kyiv, Ukraine
processing and transportation of grain, leguminous and oil crops. Exhibition
unites the leading professionals of grain market – producers and dealers of the sector in the format of the
specialized business event. Platform for dialogue between producers of the agricultural crops, core associations,
government departments, producers of the machinery and equipment, seeds and plant protection for exchange of
experience and conclusion of the contracts
10. UKRAINIAN BIOFUEL
FORUM
April Ukraine, Kyiv,
Premier Palace Hotel
For the fourth consecutive year, UBF
Forum is the key business platform for the Ukrainian biofuel industry and one of the key events for the Eastern
European market of biofuels.
http://www.biofuel-
ua.com/en/home.html
11. International Conference on Biomass For Energy
September The Presidium of the National
Academy of Sciences of Ukraine (55,
Vladimirskaya str.)
Subjects of this annual conference cover a wide range of issues related to
energy use of biomass: the biomass resources, research and development of bioenergy technologies,
demonstration and commercial projects, legislation, strategy and finance, economic and environmental
aspects of bioenergy sector.
http://biomass.kiev.ua/en/en/conferences/conf201
2
12. GREENEXPO | Alternative Energy
October Exhibition center ‘KyivExpoPlaza’
2-b, Saliutna st., 04111 Kyiv,
Ukraine
Specialized branch platform in Ukraine with world leaders’ participation.
Effective tool to research demand and proposition of local customers. 60% of visitors had chosen GREENEXPO for
market research.
http://www.greenexpo.kiev.ua/en/
13. INTERNATIONAL RENEWABLE ENERGY &
ENERGY EFFICIENCY FORUM
October Kyiv, ‘Hyatt’ Hotel
A key event of this autumn in Ukraine, REF-2012 is a meeting of
professionals, whose activities are connected to the Ukrainian market of alternative energy. The Forum creates
a business platform for exchange of experience, communication, presenting investment projects and for
finding the investors in the field of solar and wind energy, small hydro power businesses and projects in the
sphere of energy efficiency on CIS markets.
http://www.ref-ua.com/
14. LISDEREVMASH, The
International specialized exhibition of machinery
and equipment for
forestry, woodworking and furniture industry.
September International
Exhibition Center (IEC), 15 Brovarsky Ave,
02660, Kiev, Ukraine
One of the new thematic exhibition
areas - WOODENERGY. More than 20 participants represent a wide range of equipment and technologies for
utilization of wood waste and biofuels - pellets, briquettes, pellets, charcoal, as well as devices that operate on this
fuel. The exhibition will be held scientific conference "Biofuels - affordable alternative to traditional
energy sources."
http://lisderevmash.ua/en
/text/napravlenia
15. ECOSMART
International Forum of Clean Technologies in
Ukraine
May International Forum of Clean
Technologies in Ukraine ECOSMARTTM is the most essential business platform for representatives
of governmental, civil sphere, which are united by idea of sustainable development and building of a "green
economy" in Ukraine
http://www.ecosmart-
ua.com/en/home
16. ANNUAL INTERNATIONAL RETAIL INDUSTRY
FORUM 2011 BATTLE FOR THE
October Kyiv, President Hotel
RETAIL INDUSTRY FORUM was established in 2008 with the purpose
of supplying players in the market with update information on the
http://meetingpoint.ua/eventlist/view/lang/en/id/17
8
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No. Event name Date Location Description Website
CONSUMER
development of the global world market, as well as the necessary
information about how to manage the retail business in Ukrainian reality.
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Annex 3 Major market participants
Table A. Largest boilers on solid biomass in Ukraine
No. Location of installation User company/
organization
Technology and
equipment
Raw
material
Year
of
found
ation
Capac
ity
Energ
y
savin
g
1 Rososha village,
Lypovets district,
Vinnytsia region
school boiler RAU 2-600 (2)
Pivdeteploenergomontazh
(Ukraine)
Bundle
straw
2007-
2008
n/a 23.4 th
ce/y
2 Vakhnivka village,
Lypovets district,
Vinnytsia region
school boiler RAU 2-600 (2)
Pivdeteploenergomontazh
(Ukraine)
Bundle
straw
2006 300
KW
82 th
ce/y
3 Vilshanka village,
Kryzhopil district,
Vinnytsia region
school Boiler RAU 2-331 (2),
Pivdeteploenergomontazh
(Ukraine)
Bundle
straw
2007 n/a 75 th
ce/y
4 Kivertsi city, Volyn
region
hospital and school Hot-water boiler Kalvis-
950M, Volyn-Kalvis
Ltd.(Ukraine)
Wood
waste
2009 n/a 200 th
m3/y of
gas
5 Kovel city, Volyn region Kovelteplo PTM 4 boilers of Hot-water
boiler Kalvis-720, Kalvis-
500, Kalvis-400, Kalvis-
100, Volyn-Kalvis Ltd.
(Ukraine)
Firewood,
wood
waste,
peat
briquettes
2008-
2009
n/a 290 th
m3
/y
of gas
6 Ovruch district,
Zhytomyr region
District schools and
hospitals
16 boilers KVM(a), KS TG-
100, Universal (Ukraine)
Wood
waste
2008-
2011
n/a 1,854
th m3
/y of
gas
7 Zhytomyr region 135 public buildings
(schools, hospitals etc.)
214 boilers KVM – 0.3,
KVM – 0.5, KVM – 0.82
(Ukraine)
Firewood,
wood
waste,
peat
briquettes
2007-
2010
n/a 670 th
m3
/y
of gas,
1,673
t/y of
coal
8 Ivano-Frankivsk city Ivano-
Frankivskteplokomunene
rgo
2 boilers E-2.5-0.9, Design
office Sukhina (Kyiv,
Ukraine)
Wood
waste
2008 n/a 716 th
m3
/y
of gas
9 Krykhivtsi village, Ivano-
Frankivsk region
Village school Boiler, Fakel (Belarus) Wood
waste
2008 250
KW
100 th
m3/y of
gas
10 Dolyna city, Ivano-
Frankivsk region
Dolyna bakery OJSC boiler Wood
waste
2008 n/a 35 th
m3
/y
of gas
11 Stavy village, Kagarlyk
district, Kyiv region
Village school and kinder
garden
Hot-water generator TC-
350, Institute of technical
thermal physics of NASU
and NTC Biomass
(Ukraine)
Bundle
straw
2008-
2010
350
KW
22 t/y
of coal
12 Drozdy village, Bila
Tserkva district, Kyiv
region
Village social
infrastructure and
agricultural firm
‘Agrofarm Dom’ Ltd.
Boiler, Passat Energy
(Denmark)
Bundle
straw
2000 980
KW
560 th
m3
/y
of gas
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13 Boyarka city, Kyiv region school 4 boilers AOTZ-A501, KAF
Ltd. (Ukraine)
pellets 2010 48 KW n/a
14 Zhovkva city, Lviv region District heating
Zhovkvateploenergo
(schools, public and
private buildings)
n/a Wood
waste
2008-
2009
100
kW
44 th
m3
/y
of gas
15 Pidluzhne, Kostopil
district, Rivne region
school 2 boilers, Retra-ZM
(Ukraine)
Firewood,
peat
briquettes
2009 200
KW
(each)
47.9 th
m3
/y
of gas
16 Zlazne, Kostopil district,
Rivne region
school 2 boilers, Retra-ZM
(Ukraine)
Coal,
peat
briquettes
2009 250
and
100
KW
53.9 th
m3
/y
of gas
17 Dubno city, Rivne region Khmilnyky District
heating (schools,
hospitals, public and
private buildings)
2 boilers, Kriger
(Germany)
Wood
waste,
peat
2007 0.82
MW
(each)
580 th
m3
/y
of gas
18 Shostka city, Sumy
region
Schostka Heat and
Power Station (supply
heat and electricity to
90% of Schostka
consumers)
Boiler TM Metso Power
boiling bed technology
(Finland)
Peat,
wood
waste
2007-
2010
n/a 30 mln
m3
/y
of gas
19 Shumsk city, Ternopil
region
Shumsk city boiler
(social, administrative,
public and private
buildings)
2 boilers Kriger KVM(a)-
0.82 (Ukraine)
Wood
waste,
peat
briquettes
2007-
2010
n/a 100.8
t/y of
coal
20 Berezan, Kyiv region Afroservice Ltd. Boiler RAU 2-600
(Ukraine)
Straw n/a 600
KW
n/a
21 Chkalovo village,
Primorsk district,
Zaporizhzhia region
Village school Boiler RAU 2-600
(Ukraine)
Straw n/a 600
KW
n/a
22 Zlatoustovka village,
Volnovakha district,
Donetsk region
Russia Ltd. Boiler RAU 2-600
(Ukraine)
Straw n/a 600
KW
n/a
23 Uiztsi village, Mlyniv
district, Rovne region
Village school Boiler RAU 2-600
(Ukraine)
Straw n/a 600
KW
n/a
24 Cherkassy Cherkassyteplokomunen
ergo
Boiler COMCONT
(Belarus)
Straw,
wood
waste
2011 2.5
MW
n/a
Source: The Ministry of Regional Development, Construction, and Housing of Ukraine, Data of market operators
Table B. Largest biomass and biogas processing companies for power generation
No. Company name Technology and
equipment
Production
location
Year of
obtaining
the
license
Raw
material
Producti
on
capacity
, MW
Production of
electricity
2011, million
KW*hour
Electricity from biogas (for own and external needs)
1 Ukrainian milk company
LLC
Zorg Ukraine
(Ukraine)
Kyiv region,
Zgurivsky
district, Velykyi
Krupil village
2009
Cattle
manure,
maize
silage
0.650 0.774
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 71 of 80
No. Company name Technology and
equipment
Production
location
Year of
obtaining
the
license
Raw
material
Producti
on
capacity
, MW
Production of
electricity
2011, million
KW*hour
2 Spetsgasremtekhnologia
LLC n/a
Khmelnitsk
region, Mokiivtsi
village
2009 n/a 1 0
3 West-Ukrainian gas
technologies LLC n/a
Lviv region,
Batiatychi
village
2011 n/a 1 0
4 LNK LLC n/a Kyiv 2011 Domestic
wastes 0.885 0
5 Terezyne LLC (biogas
plant Elita) LIPP (Germany)
Kyiv region, Bila
Tserkva district,
Terezyne town
2011
Cattle
and pig
manure
0.25 0
Total biogas 3.785 0.774
Electricity from biogas (for own needs)
6 Pig Farm of
'Zaporozhstal'
Bigadan Ltd.
(Denmark)
Zaporizhzia
region n/a
Pig
manure
575-680
м3
/day
0
7 Pig Farm 'Agro-Oven' BTG (The
Netherlands)
Dnepropetrovsk
region,
Elenovka village
n/a Pig
manure 0.18 0
8
Cognac plant
Voznesensk (biogas
plant Zelenyi Hai)
Zorg Ukraine
(Ukraine)
Nikolaev region,
Voznesensk 2010
Maize
silage,
goat's rue
0.125 0
Total biogas 0.305 0
Electricity and heat from biomass
9 Kirovogradoliya PJSC EnergoMashProekt
(Ukraine)
Heat and power
generation
plant,
Kirovograd,
Urozhaina Str.,
30
26.11.2009 Sunflower
husk 1.7 8.935
10 Smilaenergopromtrans
LLC
PBS ENERGO
(Czech Republic),
EnergoMashProekt
(Ukraine)
Heat and power
generation
plant,
Cherkassy
region, Smila,
Leningradska
Str., 41
18.03.2010 Sunflower
husk 2.5 0.667
Total biomass 4.2 9.602
Source: The State Energy Saving and Efficiency Agency of Ukraine, data of market operators
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 72 of 80
Table C. Largest producers of solid biomass products
No. Company name
Technology
and
equipment
Production
location
Year
of
launch
Type of final
products
Production
capacity,
t/y
Web-site
Wood biomass
1
Pellet Energy Emilchino n/a Zhytomyr region 2009 pellets 50,000 http://www.p
ellet-
energy.biz/e
n/
2 Ekogran Ltd. n/a Zhytomyr region 2008 pellets 50,000 www.ekopell
et.com.ua
3
ECO PRIME Co. ltd. Amandus
Kahl,
Soderhamn,
Eriksson,
Hemel
Ukraine,
Biofuel
equipment
Sumy region 2010 pellets 27,000 www.ecopri
me.com.ua/e
ng/index.htm
l
4
Perechin Timber-and-
Chemical Plant OJSV
n/a Zakarpattia region 2004 briquettes,charco
al
25,000 http://polypro
m.com/en/ab
out-
company/oa
operechinski
yhk/
5 Kremensky briquette
plant n/a
Lugansk region
2005
pellets 15,000
http://www.p
elletskbp.co
m.ua/
6
Bioenergozbut Ltd. n/a Kyiv region 2006
pellets
12,000 http://www.bi
oenergo.com
.ua/
7 Ecobioprom Ltd. EcoTreSystem
(EU) Chernihiv region
2007 pellets 12,000
www.ecobio
prom.com
8
Volynteplo LLC Kamin-
Kashirsk plant,
Rozhische
plants
Volyn region 2010 pellets 8,000 http://volynte
plo.com.ua/?
go=/produkt
&lang=uk
9 EcoPellets Ltd.
n/a
Sumy region
2007
pellets 7,200
http://www.e
co-
pellets.com.u
a/en/
10 Crust Group-Ukraine Chernihiv region 2009 pellets 6,720
http://crust-
ua.com/biom
ass_fuels.ht
ml
11 Vista Dnepr ltd.
Kriger Volyn region 2004
pellets 6,000
http://vistapel
lets.com.ua/
page.php?p=
index
12 Zenako Ecotech n/a Kyiv region 2007 pellets 6,000 http://ecotec
h.zenako.ua/
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 73 of 80
No. Company name
Technology
and
equipment
Production
location
Year
of
launch
Type of final
products
Production
capacity,
t/y
Web-site
index_en.ht
m
13
Energia-Eco Ltd. n/a Poltava 2006 briquettes 5,000 http://www.e
nergy-
eko.com.ua/
eng/index.ph
p
14 Barlinek Invest Ltd.
n/a
Vinnitsa region
2007
briquettes, pellets
9,000
(briquettes),
40,000
(pellets)
www.barline
k.ua
Straw biomass
1 Grinevskaya pellets
plant Ltd.
Radviliškis
Machine-
Building Plant,
Lithuania
Sumy region 2009 pellets 8,400
http://www.m
fa.gov.ua/ital
y/ua/publicati
on/content/3
5749.htm
2 Urvis PE n/a Donetsk region 2002 pellets 6,000 http://uvis-
tor.com.ua/
3 Creative Group n/a Kirovograd region 2011 pellets 40,000
http://www.cr
eativ-
group.com.u
a/about_us/
4 KSG Agro n/a Dnepropetrovsk
region 2010 pellets 7,000
http://www.k
sgagro.com/
5 Avers n/a Uman, Cherkassy
region 2010 pellets 10,000
http://www.a
vers.ua/ru/en
ergy-project
Sunflower husks
1 Pologovskiy Oil
Extraction Plant n/a
Zaporizhzhia
region 2011 pellets 54,000
http://mezpol
ogy.zp.ua/en
ter/lang/en/
2 Cargill Ukraine
Kakhovka CPM (USA) Kherson region
2006 pellets 36,000
www.cargill.c
om
3 BUNGE Ukraine CPM (USA)
Dnepropetrovsk
region 2010 pellets 36,000
www.oleina.c
om
4 Satellite Ltd. n/a Donetsk region 2003 pellets 30,000 n/a
5
Alternative Fuel
Company Ltd.
n/a Zaporizhzhia
region
2005 pellets 25,200 http://www.al
tpc.com.ua/e
n/
6 Ekodrev n/a Odessa region 2006 pellets 24,000 n/a
7 Luteks PE n/a Volyn region n/a pellets 23,000 n/a
8 Cargill Ukraine Donetsk CPM (USA)
Donetsk region 2006
pellets 18,000 www.cargill.c
om
9 Nikolaev biofuel plant n/a Nikolaev 2010 briquettes 18,000 n/a
10 Denas Ltd. n/a Poltava 2003 pellets 12,000 http://bricket.
com.ua/
11
Bio-energy n/a Kharkiv 2006 pellets 12,000 http://www.bi
o-
energy.net.u
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 74 of 80
No. Company name
Technology
and
equipment
Production
location
Year
of
launch
Type of final
products
Production
capacity,
t/y
Web-site
a/
12 Transbalkterminal JV
Ltd. n/a Odessa region
n/a pellets 10,000
n/a
13 Avangard Torg Ltd. n/a Kharkiv 2011 briquettes 9,600 n/a
14 Bud JV Ltd. n/a
Zaporizhzhia
region 2009 briquettes 6,000
n/a
15
Energia-Eco Ltd. n/a Poltava 2006 briquettes 5,000 http://www.e
nergy-
eko.com.ua/
eng/index.ph
p
Source: Data of market operators
Table D. Producers of bioethanol and biofuels with bioethanol additives
No. Company
name
Technology
and
equipment
Production
location
Year of
foundation
(bioethanol
capacities)
Type of
final
product
s
Productio
n
capacity
Production
2011,
tons/year
Web-site
State-owned
1 Naumovsky
distillery
Techinservice
(investor and
equipment
supplier)
Sumy region 2009 bioethan
ol 6,000 dl/d
9,726
(bioethanol),
14,416
(alternative
fuel blends)
http://www.ukr
spirt.com/
2 Haisyn
distillery
Intercrite
(investor)
Vinnytsa
region 2009
biofuel
(E-85),
alternati
ve fuel
blends,
bioethan
ol
100,000
t/y
(biofuel);
800,000
dl/y
(bioethano
l)
3
Luzhanskyi
experimental
distillery
n/a Chernivtsi
region 2009
biofuel
(E-85)
30,000 t/y
(biofuel)
4 Khorostovskyi
distillery
Techinservice
(investor and
equipment
supplier)
Ternopil
region 2009
bioethan
ol
20,000
dl/d
5 Lokhvitsky
distillery n/a Poltava region 2009
biofuel
(BIO-
100)
80 t/d 0
6 Trilesskyi
distillery
Techinservice
(investor and
equipment
supplier)
Kyiv region 2009 biofuel
(E-85) 6,000 dl/d 0
7 Tkhoriskyi
distillery n/a Kyiv region 2009 n/a n/a 0
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 75 of 80
No. Company
name
Technology
and
equipment
Production
location
Year of
foundation
(bioethanol
capacities)
Type of
final
product
s
Productio
n
capacity
Production
2011,
tons/year
Web-site
8 Ivashkovskyi
distillery
Techinservice
(investor and
equipment
supplier)
Kharkiv region 2009 bioethan
ol 10,000 t/y 0
9 Andrushevskyi
distillery n/a
Zhytomir
region 2009 n/a n/a 0
10 Korostyshevsk
yi distillery
Techinservice
(investor and
equipment
supplier)
Zhytomir
region 2009 n/a n/a 0
11 Barskyi
distillery n/a
Vinnytsa
region 2009 n/a n/a 0
12 Trostianetskyi
distillery n/a
Vinnytsa
region 2009 n/a n/a 0
13 Kamiansky
distillery n/a
Cherkassy
region 2009 n/a n/a 0
14
Shebelinskyi
gas processing
(Ukrgasvydobu
vania,
Naftogas)
Modcon
Systems
(USA)
Kharkiv region 2011
biofuel
(Е-95-
40)
4,000 t/m 3,100 t
Private
15
Budylskyi
experimental
plant (White
House Trading,
UK)
n/a Sumy region 2009 bioethan
ol
20,000
dl/d n/a n/a
16
Koron Agro
LLC
(Continium
Group, WOG
fueling
stations)
GEA Wigand
(Germany)
Cherkassy
region 2006
bioethan
ol (from
corn)
100,000
t/y 0
http://koronagr
o.com
17
Dacor
Agroholding
(Ukrlandfarmin
g)
n/a West of
Ukraine 2007
bioethan
ol (from
sugar
producti
on
wastes)
3,000 t/y 0 http://www.dak
orwest.com/
Private oil refueling retail
18 BioHim Group
Olimp Group
of companies
(investor)
Donetsk 2011
biofuel (А-
98а, А-
95а и А-
92а,
Gepard)
7,300 t/y
(biofuel) 7,000 t
http://www.bio
himgroup.com/
;
http://www.a95
a.com.ua/novo
sti.html
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 76 of 80
No. Company
name
Technology
and
equipment
Production
location
Year of
foundation
(bioethanol
capacities)
Type of
final
product
s
Productio
n
capacity
Production
2011,
tons/year
Web-site
19 Agro-Nafta n/a Donetsk
region 2009
biofuel
(Аб-92
EXTRA
е40, Аб-
95 EXTRA
е40 и Аб-
98 EXTRA
е85,
Diesel B30
n/a n/a http://agronaft
a.com.ua/
20 Azovskaia oil
company LLC
Ventech
(USA), Koch-
Glitsch
(Switzerland)
Donetsk
region 1999
biofuel
(Innovativ
e E 95, E-
92, Е-80)
400,000
t/y 48,000 t
http://aoc.com.
ua/
Source: Data of market operators
Table E. Largest producers of biodiesel
N
o.
Company
name
Production
location
Year of
launch
of
biofuel
product
ion
Final products
Productio
n
capacity
Productio
n 2011,
tons/year
Web-site
1
Oriana-Galel
chemical
enterprise
Ivano-
Frankivsk
region
2007 biodiesel (from
rapeseed) 180000 t/y 0
n/a
2
Agro-Nafta
LLC
Donetsk
region 2009
biodiesel (B-
30l) n/a n/a
http://agronafta.com.ua/rus/ind
ex.php?t=about&sub=contacts
3
Stirol chemical
plant
Donetsk
region 2008 biodiesel
35,000-
40,000 t/y 0
n/a
4 PE Liber
Kherson
region 2007
biodiesel (from
rapeseed) 10,000 t/y 0
n/a
5 BITIS
(Biotechnology
and systems)
Ltd
Kyiv region 2011 Biodiesel,
Multifunctional
additive for
diesel fuel
Diesel
Systempflege
Fliess-Fit based
on biodiesel
n/a n/a n/a
6
Informtrans-Air
Ltd
Zaporizhzhi
a region
2008 biodiesel n/a n/a http://www.informtransavia.cha
t.ru/index.htm
7
APK Donbass
Ltd
Donetsk
region 2010
biodiesel n/a n/a n/a
8
Production and
Commercial
Firm Noblis Ltd
Zhytomyr
region
2008
biodiesel n/a n/a n/a
Source: Data of market operators
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 77 of 80
Table F. Announced investments in the sector
No.
Company Address Project Resour
ce
Put in
operat
ion
Product
ion
Purpos
e
Capacity
annual
Bud
get
1 Agroholding
‘Ukrlandfarming’
http://www.ukrlandfarmin
g.com.ua/
Mr. Oleh
Bakhmatiuk,
President (owner)
152, Akademika
Zabolotnogo str.,
Kyiv, Ukraine
tel.: +38 (044) 585
24 40
fax: +38 (044) 522
56 77
Constru
ction of
30
biogas
plants in
18
regions
of the
country
1.3
million
tons of
organic
wastes
per year
2015 Electricit
y, heat,
bio
fertilizer
s
internal
and
surround
ing rural
areas
needs
Electricity - 1.39
thousand GW/h,
heat - 1.5
thousand GW/h,
overall power
capacity -197
MW, liquid bio-
fertilizers - 825
thousand tons,
solid bio-
fertilizers 178
thousand tons.
EUR
885
mio
2 ‘Avangardco’
http://www.ukrlandfarmin
g.com.ua/
Mr. Oleh
Bakhmatiuk,
President (owner)
152, Akademika
Zabolotnogo str.,
Kyiv, Ukraine
tel.: +38 (044) 585
24 40
fax: +38 (044) 522
56 77
Constru
ction of
2 biogas
plants
in
Khmelnit
sky and
Kherson
regions
Chicken
dropping
s, waste
of eggs
producti
on
n/a Electricit
y and
heat
internal
and
surround
ing rural
areas
needs
Power capacity
– 20 MW
EUR
50-
60
mio
3 Mironovsky
Khleboproduct (MHP)
http://www.mhp.com.ua/
en/home
Mr. Yuriy Kostiuk,
President
7, Vasylevskoi str.,
Kyiv, 03055, Ukraine
tel.: +38 (044) 207
00 00
fax: +38 (044) 207
00 02
Constru
ction of
biogas
plant in
Dniprop
etrovsk
region
chicken
dropping
s
Dece
mber
2012
Electricit
y and
heat
Internal
needs
Power capacity -
5MW
USD
15
mio
4 Mironovsky
Khleboproduct (MHP)
http://www.mhp.com.ua/
en/home
Mr. Yuriy Kostiuk,
President
7, Vasylevskoi str.,
Kyiv, 03055, Ukraine
tel.: +38 (044) 207
00 00
fax: +38 (044) 207
00 02
Constru
ction of
3 biogas
plants in
Cherkas
sy,
Crimea
and
Vinnitsa
regions
chicken
dropping
s
2013-
2014
Electricit
y and
heat
Internal
needs
n/a n/a
5 Agroholding ‘Astarta’
http://www.astartakiev.co
m/en/index.htm
Mr. Viktor Ivanchyk,
Founder and CEO
38/44, Pochayninska
str., Kyiv, 04070,
Ukraine
+380(44) 585 9494
om
Constru
ction of
biogas
plant at
Globyno
sugar
plant in
Poltava
region
sugar
beet
pulp
Dece
mber
2012
biogas Internal
needs
Biogas - 196
thousand m3
USD
12
mio
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 78 of 80
No.
Company Address Project Resour
ce
Put in
operat
ion
Product
ion
Purpos
e
Capacity
annual
Bud
get
6 ‘Selkhoz-product’
Mr. Yuriy
Bondarchuk,
President
9/27а, Kotovskoho
str., Kyiv, 04060,
Ukraine
tel.: +38 (044) 453
76 64
fax: +38 (044) 453
76 64
[email protected] [email protected]
Constru
ction of
biogas
plant in
Rokitnia
nsky
sugar
plant in
Kyiv
region
sugar
beet
pulp,
corn and
grass
silage
Dece
mber
2012
Electricit
y and
heat
Internal
and
surround
ing rural
areas
needs
Power capacity
– 20 MW
EUR
80
mio
7 Agri-farm ‘Danosha’
http://www.danosha.com.
ua/
Mr. Kristen
Yakobsen, Director
1 Lisova Str,
Kopanki village,
Ivano-Frankivsk
region, 77330,
Ukraine
tel.: +38 (0342) 59-
53-34, +38 (03472)
62415;
fax: +38 (044)
2480009-2666,
mob:+38 (050) 373-
0695
ua
Constru
ction of
biogas
plant at
pig
complex
in
Kalush
Ivano-
Frankivs
k region
Pig
manure
Dece
mber
2012
Electricit
y and
heat
Internal
needs
Electricity – 1
MW, heat – 1
MW
EUR
4
mio
8 Company ‘Ecoprod’ Mr. Ivan Melnyk,
General Director
16+, Vorovskoho
str., Volnovaha,
Donetsk region,
85700, Ukraine
tel.: +38(062) 334 01
46, +38 (06244) 410
36,
Constru
ction of
biogas
plant in
Donetsk
region
n/a 2013-
2014
Heat
and
fertilizer
s
Internal
needs
and
partially
external
needs
Power capacity -
2.8 MW, biogas
- 14 million m3
EUR
10
mio
9 Administration of Kyiv
city region / Finnish
company
n/a Constru
ction of
district
power
plant
solid fuel
pellets
from
peat
n/a Electricit
y
Municip
al needs
Capacity - 10
MW
EUR
15
mio
10 Company ‘Biogasenergo’
Ltd. (part of Eastern
investment group)
Mr. Vitaliy Butenko,
Director
2, Lenina str.,
Protsiv, Kyiv Region,
08344, Ukraine
tel.:+38 (044) 531 13
47 08344 08344
Constru
ction of
heat
generati
on
station
in Kyiv
and
Rivne
regions
sawdust Dece
mber
2013
Heat internal
and
surround
ing rural
areas
needs
Power capacity -
18 MW (Kyiv
region), 10-12
MW (Rivne
region)
USD
14
mio
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 79 of 80
No.
Company Address Project Resour
ce
Put in
operat
ion
Product
ion
Purpos
e
Capacity
annual
Bud
get
11 Company ‘Bioenergy’/
Danish company ‘Filcon’
n/a
Constru
ction of
power
station
in Uzin,
Kyiv
region
n/a n/a Electricit
y and
heat
internal
and
surround
ing rural
areas
needs
Electricity – 3.5
MW, heat - 8
MW
n/a
12 ‘Pellet Energo Ukraine’
Ltd.
http://www.pellet-
energy.biz
3, North Syretskaya
str., office 327-1,
Kyiv, 04136, Ukraine
tel.:+380 (44) 205-
34-25
info@pellet-
energy.biz
Launchi
ng of 7
solid
fuels
producti
on lines
in
Zhytomir
region
Wood
wastes
n/a Wood
pellets
Export
markets
Pellets – 260
thousand tons
n/a
13 Company Polish Energy
Partners jointly with
Ukrainian KSG Agro
http://www.ksgagro.com/
en/
Mr. Serhiy Kasianov,
member of the
Board of Directors
4а, Rohnedynska
str., Kyiv, 01004,
Ukraine
tel.: +38(044) 232 90
89
fax: +38(044)590 51
65
Constru
ction of
pellets
plant in
Dneprop
etrovsk
region
Straw,
husks
May
2013
Straw
pellets
Export
markets
(mainly
to
Poland)
Pellets - 90
thousand tons
n/a
14 ‘Vin-Pellet’ Ltd. (Smart
Holding)
Mr. Oleksandr
Kedrovskyi, Director
7а, Ihorivska str.,
Kyiv, 04070, Ukraine
tel.: +38(044) 590 30
18
Producti
on of
solid
biofuels
in
Vinnitsa
region
with
further
plans of
analogu
e 10
plans in
the
regions
of
Ukraine
straw 2013 Straw
pellets
Domesti
c and
export
markets
(Polish
power
plants)
Pellets – 100-
150 thousand
tons
EUR
26
mio
15 Company RESCO LLC n/a Constru
ction of
pellets
plants in
Nikolaye
v region
wood
wastes
Dece
mber
2012
Wood
pellets
Export
markets
(mainly
to
Denmar
k)
Pellets – 12
thousand tons
n/a
16 ‘Agroprime’ Holding
http://agroprime.com.ua/
Mrs. Iryna Ihnat,
General Director
Launchi
ng of
straw n/a Straw
pellets
Domesti
c and
Pellets - 15-20
thousand tons
n/a
Market Study Food sectors in Ukraine - Part B: Biomass processing industry
Tebodin Ukraine CFI Report number: 71834-B-R
Date: 10 May 2013
Page: 80 of 80
No.
Company Address Project Resour
ce
Put in
operat
ion
Product
ion
Purpos
e
Capacity
annual
Bud
get
ukr/ 154, Belhorod-
Dnistrovska str.,
Izmail, Odesa
Region, Ukraine
tel./fax: +38 (04841)
488 79
mob.: +38 (067) 488
08 89
pellets
producti
on plant
in
Odessa
region
export
markets
17 Slovak companies Agro
Vos and IPP Slovakia
and Ukrainian-Slovak
company ‘Begokon
Ukraine’
3а, Proekna str.,
Uzhohorod, 88000,
Ukraine
tel.: +380 (312) 66
17 23;
mob:+38(050) 438
57 97
Constru
ction of
solid
fuels
plant in
Khmelnit
sky
region
Straw of
grains
and
oilseeds
n/a Straw
pellets
Export
markets
(Slovaki
a)
Pellets – 35
thousand tons
n/a
18 Sugar Union ‘Ukrros’
http://ukrros.webriders.co
m.ua/en/
Mr. Serhiy
Fedorenko,
Chairman of the
Supervisory board
10, Berezneva str.,
Kyiv, 02160,
Ukraine,
tel.:+38 (044) 574 03
38
Bioethan
ol
producin
g facility
on
Gubinski
y sugar
plant,
Dniprop
etrovsk
region
Sugar
beet
pulp
n/a Bioethan
ol
Domesti
c and
export
markets
n/a EUR
30
mio
19 ‘Vynogradyv horticultural
plant’
Mr. Vasul Monda,
Director
35, Persykova str.,
Vynohradiv,
Zaarpatia Region,
Ukraine
Constru
ction
and
operatio
n of a
deep
corn
processi
ng into
the
bioethan
ol and
izogluco
se
syrups
plant in
Zakarpat
tya
region
Corn n/a Bioethan
ol, feed
stuff,
fructose
and
maltose
syrups,
farina
Domesti
c and
export
markets
Bioethanol –
29 700 m3/year
C02 – 10 866
t/year
Maltose syrup –
11 000 t/year
Dried stillage –
11 523 t/year
EUR
62.4
mio
Source: data of market operators