Ukrainian businesses are gradually reviving the biofuel market following a downturn. However, while the development of new capacity for biodiesel is still appropriate, Ukraine does not currently need bioethanol production plants, as the market is oversaturated.
This was reported by Latifundist.com, citing a statement by Taras Mykolayenko, director of the Ukrainian Association of Bioethanol Producers.
Two new biodiesel production plants have begun operations in Kremenchuk and Berdychiv. According to the expert, developing this sector is currently economically viable.
A surplus market
At the same time, new production capacity is also emerging in the bioethanol segment. However, this segment in particular is already at risk of becoming oversupplied.
“If all launched capacities operate at full load, we will produce more bioethanol than the amount of gasoline produced before the war,” the expert emphasized.
The rapid development of the segment has been driven by the quick payback of plants built earlier. This refers to businesses that began bioethanol production before the full-scale invasion. They recouped their investments within the first six months, motivating other companies to invest in this segment of eco-friendly fuel.
EcoPolitic previously reported that, starting from May of last year, all fuel stations in Ukraine must ensure that the bioethanol content in gasoline should be no less than 5%. Both bioethanol and biodiesel are produced from renewable plant raw materials such as corn or rapeseed. At the same time, the use of biofuels compared to “traditional” petroleum-based fuels results in lower CO2 emissions.
