The Ministry of Economy supports the update of state regulation of the bioethanol industry, which should create conditions for increasing bioethanol production to 1 million tons per year, developing domestic processing, attracting investments and ensuring an economic effect for the country at the level of about $1.5 billion. The prospects for the development of the industry were discussed during the round table “Bioethanol Market of Ukraine: Regulatory Policy for the Development of Processing, Attraction of Investments and European Integration”.
Deputy Minister of Economy, Environment and Agriculture of Ukraine Taras Vysotsky stressed that the development of the bioethanol industry was one of the key areas for increasing domestic processing of agricultural raw materials, attracting investments, creating new jobs and producing products with high added value.
“Our main task is to ensure economic growth and increasing bioethanol production. The legislative changes proposed by the relevant associations will reduce the administrative burden on business, promote the development of domestic processing, attract investments and accelerate European integration. We support solutions that help manufacturers work more efficiently and create greater added value in Ukraine,” Taras Vysotsky noted.
According to him, harmonization of the regulatory framework with European rules is a necessary condition for the development of the industry, the opening of new sales markets and the further integration of Ukraine into the EU single market.
The bioethanol industry is already demonstrating high rates of development. Over the past year, its production capacity has increased more than 2.5-fold, or 160%. Currently, 10 out of 17 licensed bioethanol producers operate in Ukraine. The current production volume is 180-200 thousand tons per year. The available capacity allows it to be doubled.
The development of the bioethanol industry will also stimulate demand for Ukrainian agricultural raw materials. One plant with a capacity of 100 thousand tons of bioethanol per year processes up to 350 thousand tons of corn or other biomass. The construction of such an enterprise requires investments of $50-100 million, and the total investment potential of the industry already exceeds $300 million. In addition, one plant creates up to 150 jobs directly in production and up to a thousand in related industries.
The roundtable participants also emphasized that bioethanol is not only a component of motor fuel, but also an important component of the development of deep processing, production of high-protein feed, biogenic CO2, technical chemistry and sustainable aviation fuel (SAF).
The event was attended by representatives of the bioethanol and fuel industries, the Acting Head of the State Tax Service Lesya Karnaukh, representatives of the Ministry of Finance, the State Customs Service, people’s deputies of Ukraine and experts.
The roundtable was organized by the Ukrainian Federation of Oil and Gas Employers (UFMA) and the Ukrainian Association of Bioethanol Producers. (Economy Ministry)