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Posted On

18
January
2023

Privatization of distilleries for biofuel production to ensure energy sustainability of Ukraine – Deputy Minister of Agrarian Policy

KYIV. Jan 18 (Interfax-Ukraine) – Ukraine’s energy stability can be ensured by increasing production of bioethanol and biogas, which the Ukrainian agro-industrial complex can produce domestically, and legislative permission to add bioethanol to motor fuels and the privatization of distilleries for production of biofuel will help reduce the burden on grain logistics and ensure the stability of the country’s energy system.

This opinion was expressed by Deputy Minister of Agrarian Policy and Food of Ukraine Vitaliy Holovnia on the air of the national marathon.

According to him, due to the energy crisis caused by Russian aggression in Ukraine, the issue of developing alternative energy sources that had not been used before has become acute. In particular, the processing industry of the agro-industrial complex can provide the country with bioethanol and biogas, the use of which will partially replace traditional types of energy both locally and nationally.

"In order for the processing industry to develop, it is necessary to introduce certain legislative initiatives. In particular, allow the addition of bioethanol to motor fuels. The corresponding bill is being prepared for the second reading in the Verkhovna Rada. The addition of bioethanol to motor fuels will help reduce the load on grain logistics and ensure the sustainability of the energy sector in general," Holovnia said.

He clarified that now in Ukraine there is a tendency to increase the capacity for production of bioethanol, including due to the privatization of distilleries.

"I am sure that in 2023 we will feel that the alcohol industry has started working. Biomethane processing plants are vertically integrated, that is, the raw material after the release of bioethanol is a derivative for production of biogas. And from biogas it is possible to produce both electricity and purify it to biomethane," the Deputy Minister said.

He also said that at present the Ministry of Agrarian Policy, together with experts, is preparing projects to regulate and develop the processing industry in the agro-industrial complex and support programs for producers of alternative energy resources. So far, they are using a preferential feed-in tariff – a mechanism that stimulates the use of renewable energy sources.