EcoPolitic has collected 5 promising green investments in Ukraine during the war. They are different in terms of industry, focus, and format. But all of them demonstrate that even in difficult conditions, it is possible to find solutions that simultaneously support the economy and preserve nature.
1. In December of this year, it became known that Galnaftogaz was attracting a €62 million loan from the European Bank for Reconstruction and Development (EBRD) to build a wind farm in Volyn. The Bank will provide a long-term loan to finance the project of Wind Power G.I. Volyn and Wind Power G.I. Volyn 3.
The total amount of financing required is €235 million. The planned capacity is 147 MW. According to project calculations, the new wind farm will produce about 380 GWh of green electricity annually. It will help reduce CO2 emissions by more than 245 thousand tons per year.
It is worth noting that this is the first private “greenfield” project in the Ukrainian energy sector to receive EBRD funding during the war.
2. During the full-scale war, DTEK invested more than $1 billion in Ukraine's energy infrastructure, including wind and solar power plants and battery systems.
The company has also become the largest investor in energy storage facilities in Ukraine, having invested €140 million. DTEK will build 200 MW of facilities in Ukraine to help build a secure and green energy system.
Photo: Tyligulska wind farm in the Mykolaiv region. Source: dtek.com
In May 2023, the company launched the first stage of the 114 MW Tiligul wind farm with 19 wind turbines.
In December, it agreed with Danish company Vestas to supply 64 wind turbines (6 MW each) with a total capacity of 384 MW. Investments in the second phase of the Tiligul wind farm were to amount to €450 million and be financed by the company and Western banks under state guarantees.
As of May 2024, DTEK reported on preparatory work for the construction of the second stage of the wind farm.
3. In May this year, it became known that Hydrogen of Ukraine and AB5 Consulting received a grant from the UK to implement the H2U project for the production of renewable hydrogen in Reni, Odesa region. In addition to the construction of the plant, the project also involves the construction of solar and wind power plants to provide the company with reliable energy supply.
The UK Foreign Office will finance 70% of the cost of a comprehensive feasibility study, with the rest covered by Hydrogen of Ukraine. The British company AB5 Consulting is developing this document. The feasibility study will also create an opportunity to attract external investments for the construction of the plant.
The total investment in the plant, renewable energy facilities, and infrastructure for hydrogen transportation to the EU is approximately €300-400 million.
4. In October 2023, Vinnytsia Poultry Farm LLC (a subsidiary of MHP agricultural holding) received a $30 million loan from the International Finance Corporation to modernize a biogas plant in the village of Vasylivka and produce liquefied biomethane. The project was valued at $52 million. In addition to the IFC loan, MHP was counting on its own funds and $15 million of support from other donors.
Biogas complex "Biogas Ladyzhyn". Photo: pravda.com.
5. VITAGRO group of companies invested €6 millionto the biogas plant in Khmelnytskyi. It became operational at the beginning of October 2024 and became the first enterprise producing biomethane to supply gas to the domestic gas transmission system.
Photo: vitagro.com.ua.
Since its launch, the biogas plant has been operating at 60-70% of its planned capacity and has supplied approximately 6,000 cube. m of fuel. The company planned to reach full capacity by the end of October.
The company expects to return its investments in 5 years of full operation of the plant.
