OKKO is building a biofuel plant for €110 million

OKKO is building a biofuel plant for €110 million shutterstock
Hanna Velyka

About 70% of the required investment was provided by banks

OKKO Group is implementing a €110 million project to build a bioethanol plant, which is expected to be fully launched in Q3 2026.

This is reported by the Interfax-Ukraine news agency with reference to the group's CEO Vasyl Danyliak.

According to him, this year the elevator and warehouse groups will be fully operational. Therefore, the plant will be able to accept corn from the company's cluster.

The top manager noted that the total investment in the plant during 2024-2026 will amount to €110 million. This amount will be provided both by the group's own contribution (€35 million) and loans (€75 million). Debt financing has been provided:

  • European Bank for Reconstruction and Development (EBRD) – €60 million for a period of 9 years;
  • Raiffeisen Bank Ukraine – €15 million for 7 years.

Vasyl Danyliak emphasized that starting May 1, 2025, it will become mandatory to add 5% bioethanol to motor gasoline, so the demand for this alcohol is growing significantly. The CEO said that the annual capacity of the OKKO plant for bioethanol is 83 thousand tons, for animal feed – 70 thousand tons, for corn processing – 270 thousand tons.

Interfax-Ukraine recalled that the EBRD and OKKO signed a €60 million loan agreement for the construction of a new bioethanol plant in Ukraine at the Ukraine Recovery Conference in June 2024 in Berlin.

As EcoPolitic reported in early April, OKKO Group has raised €157 million from Western banks to build a wind farm in Volyn. Earlier, in early February, we informed that the company also commissioned an energy storage facility with a total capacity of 20 MW.

Earlier, EcoPolitic reported that the construction of a processing complex, which will include plants for the production of bioethanol, biogas and a thermal power plant on sunflower husks, is underway in the industrial park “Carbon-neutral eco-agro hub Podillya-Horodok” in Horodok, Khmelnytsky region.

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