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UKRAINE’S ENERGY FUTURE: A PATH TO SUSTAINABILITY OR FURTHER EPENDENCE?

Elena Rybak, Director of the European-Ukrainian Energy Agency took part in the seminar “Cross-border Bioenergy: Expanding biofuel markets in transport sector”, which took place within the frameworks of the World Renewable Energy Congress 2011 in Linköping (Sweden).

Seminar was organized by Sweden Bioenergy Association (SVEBIO) and European Biomass Association (AEBIOM). Event participants - economic experts, representatives of small and medium-scale biofuel companies, discussed situation on EU biofuel markets, opportunities and markets for target investments. Specific part of Agenda became the report by Elena Rybak, who told about situation with production and export of biofuel in Ukraine, necessary economic and legislative initiatives for the market to implement existing potential.

“Ukrainian market is a vast potential for biofuel production. Thus, according to the Ministry of Agrarian policy, the production potential of biofuel is 1 million tons a year, bioethanol - 2 million tons. Unfortunately, at this moment produced only 100 thousand tons per of biodiesel per year and a little bit more than 200 thousand tons of bioethanol. The same situation with biogas, potential of its production on farm enterprises - 2,45 million tons of reference fuel, from 300 thousand of theoretical biogas plants (according to experts estimation) only several are working”, - says Elena Rybak in her speech.

But the expert adjust that the achievement of planned numbers is interfered with political and economical factors. “First of all – this is political decisions, - says Ms. Elena Rybak. – Today two bills about stimulation and development of biodiesel and bioethanol markets are developing. If the laws will be adopted, than Ukraine will declare aims on using the biofuel in transport sector, which can take up to 80% of biodiesel till 2015 (in proportion to the produced diesel) and 30% of bioethanol (in proportion to the gasoline production)”.   

According to the current situation, Ukraine is interesting only as a supplier of biosources. As Ms. Rybak said, European Union in 2008-2009 imported 2,3 million tons of rape from Ukraine, which cost $1,35 billion. The reason is that rape or rapeseed oil is profitable to export in raw form, because of high prices on world market. Production of bioethanol without subsidies and dotations for internal market is not economically attractive. Potentially, the production of biogas from organic waste may have more economic feasibility, but it needs to resolve issues with a green tariff, licensing, etc.

Proceeding from the urgency of energy efficiency and energy saving technologies issues in Ukraine, EUEA together with representatives of European Commission, Government of Ukraine, Secretariat of the Energy Community, business community and donor organizations will gather at the Second European-Ukrainian Energy Day, annual event in sphere of energy efficiency and alternative energy, which will take place on May 31 – June 1, 2011 in InterContinental Hotel (Kyiv). Under support of State Agency of Ukraine for Energy Efficiency and Energy saving.

Organizers: European-Ukrainian Energy Agency (EUEA) and the Conference House.

Despite the fact that previous year event was conducted for the first time, it gathered about 300 participants from more than 10 countries. It indicates the urgency of discussed issues and necessity of constant dialogue between main market players.

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