Memorandum signed to develop biofuel exchange trade in Ukraine
Kyiv • UNN
The State Agency on Energy Efficiency and Energy Saving of Ukraine and the Ukrainian Energy Exchange are working together to create a transparent and competitive biofuel market in Ukraine that meets the country's energy security and independence goals.
The State Agency on Energy Efficiency and Energy Saving of Ukraine and the Ukrainian Energy Exchange have started cooperation in the field of energy efficiency and alternative fuels and signed a memorandum. This was reported on the agency's website, UNN reports .
Details
The priority of the partnership is to create a transparent and competitive biofuel market in Ukraine.
The development of the biofuel market is one of the state's priorities for energy security and energy independence of both the country and communities, especially in times of energy challenges and reconstruction.
Ukraine, which has a strong agricultural sector, has significant potential for bioenergy development. About 9 billion m3 of natural gas per year can be replaced by agricultural waste alone.
According to the head of the State Agency on Energy Efficiency and Energy Saving, Hanna Zamazeyeva, there are more than enough arguments in favor of biofuels as an alternative to fossil fuels:
- to replace gas and save 30% to 60% of the budget;
- ensure energy supply to social and important critical infrastructure facilities during the war and Russian missile attacks;
- to intensify economic processes.
According to the State Agency on Energy Efficiency and Energy Saving, despite the war, 360 MW of alternative fuel heat generation capacity was commissioned from early 2022 to October 2023. This is about €72 million of investment in the economy.
Thus, the demand for solid biofuels is growing. Therefore, the market needs to introduce transparent and competitive conditions for all players.
Our goal is to create a transparent, competitive biofuel market in Ukraine. The experience of the European Union has shown that such a market instrument leads to a reduction and equalization of biofuel prices
Biofuel exchanges operate in Lithuania, Denmark, and the United States. In Lithuania, the Baltpool exchange has reduced the price of raw materials by 40%, and the price difference between neighboring regions has almost disappeared.
The creation of a market mechanism for biofuel trade will ensure that:
- competitive conditions;
- transparent and fair pricing;
- stabilization of biomass prices;
- reliable supply of raw materials to the manufacturer in accordance with agreed delivery schedules;
- guarantees for the conclusion and fulfillment of contracts; direct cooperation between the producer and the consumer;
- and, as a result, an increase in biofuel production, which will allow to provide biofuels to generating facilities and scale up bioenergy projects.
