In June, the Government of Ukraine set boundary tariffs for heat for the population for the heating season of 2019-2020, arguing that it was necessary to end the tyranny of local "communal barons", which force the population to overpay for their own mismanagement and inefficiency.

However, such a decision of the Cabinet of Ministers may lead to a situation where, with the increase in the price of natural gas, these boundary tariffs for heat energy will be lower than the economically sound level and district heating utilities will incur significant losses.

  • Do the "boundary tariffs" for heat energy solve the problems of housing and public utilities??
  • What are the alternative solutions?
  • Why should we look at the experience of Estonia?

These and other relevant questions in the publication for Ekonomichna Pravda are answered by Georgii Geletukha, Chairman of the Board of the Bioenergy Association of Ukraine, and Diana Korsakaite, Senior Expert on Energy Policy, Market Regulation and Reform.

Read the full article at the link below (in Ukrainian):

Do the "boundary tariffs" for heat energy solve the problems of housing and public utilities? (in Ukrainian)

According to the forecast of the European Biogas Association, the production of biomethane in Europe in 2020 will be 26% of the total biogas production (6.5 billion m³ biomethane). In 2030, the share of biomethane - that is, enriched biogas - should increase to 37.5% (this is 18 billion m³ of biomethane).

▪️ Italy is predicted to become a leader in biomethane production in a few years. There are already 250 compressed gas stations (CNG) and 22 liquefied methane (LNG) stations in Italy, and more than a million cars and 3300 buses use methane as a fuel.

▪ In France, according to the forecast, in 2030, the production of biomethane will account for a third of natural gas consumption

▪️ In Denmark, according to the forecast, in 2035, biomethane will completely replace natural gas.

Projection of biomethane production in Europe. Yurij Matveev. The platform of sustainable agribusiness SAF Ukraine. June 20, 2019.

 

The Bioenergy Association of Ukraine since 2019 is a partner of the platform of sustainable agribusiness SAF Ukraine.

The article deals with:
  • Status and prospects of poultry development in Ukraine
  • What bioenergy projects in the poultry sector have been successfully implemented by Ukrainian agrarian enterprises?
  • What are the benefits for agrarian enterprise from biogas complex working on poultry farming residues?
Relevance

The number of birds in Ukraine in the last 5 years is kept at the level of 83-92% of their number in 1991. For comparisons: the industrial livestock of cattle for the analogous period is only 5-6%, for pigs is 23-27% from the indicators of the same 1991.

This testifies the attractiveness of the poultry sector and the stability of its development in the near future.

Read the full article here:
Bioenergy projects in poultry farming: successful examples. Geletukha G.G., Kucheruk P.P., Zheliezna T.A. "Journal of Chief Power Engineer", June 2019, №6, p. 38-41. (in Ukrainian)

As soon as enterprises build their own biogas plant, they simultaneously get rid of waste disposal problems and receive an additional source of income. (Details: Interview by Sergiy Shpak – director of Ecodevelop company) However, only a few of them have the opportunity to fully finance the project at their own expense. 

The article considers the terms, advantages, and disadvantages of the following financing options for biogas plant construction:

  • Getting credit
  • Leasing
  • Strategic investor
  • Portfolio Investor
Read the full article here:
Fund raising for the biogas plant construction. Korolov O., Investment Analyst. Developer and engineering company "Ecodevelop". June 21, 2019

 

Ecodevelop company since 2018 is a full member of the Bioenergy Association of Ukraine. Details are here.

Georgii Geletukha – Head of the Board of the Bioenergy Association of Ukraine – in a special project of The Village Ukraine answers questions:

▪ When will the energy resources run out and what to do next?
▪️ Why should we abandon fossil fuels?
▪️ What does humanity agree on?
▪️ What is Biofuel?

Citation:
The average temperature of the atmosphere since the pre-industrial period has already increased by one degree. If we continue with the same pace, by 2100 the temperature will rise by six degrees. And this is the melting of glaciers, the rise of the ocean, hurricanes and tsunami. In a word, it is a climatic catastrophe.

In addition to the fact that it will not be very comfortable for us to live in a terrible climate, we should keep in mind that infrastructure built by people will be partially destroyed. For example, gas pipelines passing through the permafrost regions will fall down, as the ice on which they stand will turn into a swamp. So, even if we stubbornly decide to use only traditional sources of energy, we will not succed.
Read the full article here:
What is really happening with our planet and ecology today? Geletukha G.G. Website "The Village Ukraine", June 20,  2019 (in Ukrainian)

An article on the development of the bioethanol market in Europe in 2011-2017, according to the annual statistical report (EBA Statistical Report 2018) of the European Biogas Association.

  • In 2017, biomethane was produced in 15 EU countries: Austria, Great Britain, Hungary, Germany, Denmark, Iceland, Spain, Italy, Luxembourg, the Netherlands, Norway, Finland, France, Switzerland, and Sweden. Three other countries: Belgium, Ireland, Estonia – announced plans to start production of biomethane in 2018.
  • For six years, the amount of biomethane produced per year has increased by 26 times – from 80 million to 1.94 billion cubic meters.
  • The leader of the European biomethane market is still Germany, where about half of the European biomethane was produced in 195 plants.
Production of biomethane in Europe. Yurij Matveev. The platform of sustainable agribusiness SAF Ukraine. June 20, 2019.

 

The Bioenergy Association of Ukraine since 2019 is a partner of the platform of sustainable agribusiness SAF Ukraine.

The present state of the district heating system in Ukraine is presented. Necessity of long-term planning in the heat supply sector is analyzed. Recommendations for the implementation of such planning in Ukraine at the national and regional levels are presented.

The purpose of the work is to develop recommendations for the implementation of long-term planning in Ukraine’s heat supply sector. The tasks of the work consist in a review of European experience in this fild, analysis of the relevant Ukrainian legislation, and determining directions for its improvement. The methods of research include the study of literary, statistical and other data, analysis of regulatory acts.

It is shown that lately there have been stable negative trends in the district heating (DH) sector of Ukraine, while the state policy in this area is now uncertain. At present, in the country there are virtually no national and regional strategic documents that contribute to the long-term planning of district heating. The working Concept of implementation of the state policy in the fild of heat supply has a number of shortcomings and cannot be a suffient basis for the implementation of planning at the national level. City heat supply schemes, which are the only regional-level document in the fild of heat supply, are not binding for realization and do not take into account the targets of relevant national-level documents. Normative legal acts of Ukraine that regulate relations in the fild of heat supply, require considerable revision and introduction of the norms that establish the procedure for the implementation of long-term planning in the DH sector. It is advisable to keep district heating in Ukraine and develop effient DH systems with the aim to provide the population of the country with reliable and high-quality heat supply. The fist steps in this direction should include the development of the Heat Supply Strategy by 2035, implementation of the zoning principle while developing heat supply schemes and making the schemes mandatory for implementation. In addition, it is necessary to ensure the consistency of the target indicators included in the regional (city) heat supply schemes with the corresponding national targets.

Read the full article by the link below:

Problems and prospects of long-term planning in the heat supply sector of Ukraine. Geletukha G.G., Zheliezna T.A., Bashtovyi A.I. Journal "Thermophysics and Thermal Power Engineering", 2019, vol. 41, №2, p. (72-77) (in Ukrainian).

Paper presents the results of estimation of the energy potential of biomass of agricultural origin in Ukraine and the current state of its use. The authors analyze the possibilities for creation of communal enterprises for harvesting of agrobiomass and production of biofuels from it. The results of the typical feasibility study of the projects for the production and use of straw fuel are shown.

The aim of the work is to analyze the possibilities and develop recommendations for the creation of communal enterprises in Ukraine for biomass harvesting and biofuel production based on the united territorial communities. The tasks of the work are to assess the potential of agrobiomass in Ukraine, to identify the promising areas of activity of the communal enterprises, and to carry out respective feasibility studies. The results of the assessment show that Ukraine has a big potential of biomass of agricultural origin available for energy production. At present, this potential (except for sunflwer husk) is not actively used. The use of the whole energy potential of agrobiomass can cover about 18% of the fial energy consumption in Ukraine. Activation of biomass energy production will be facilitated by the creation of communal companies for biomass harvesting and biofuel production. Perspective areas of activity of such enterprises can be harvesting of agricultural residues, growing energy crops, production of chips from logging residues, harvesting of wood fuel during the restoration and reconstruction of protective forest bands, production of pellets and briquettes from agrobiomass. When choosing a particular type of activity of a potential communal enterprise or a combining several activities, it is necessary to apply a step-by-step approach from simple and reliable to more complex but more effient activity, with an interim analysis of both the current situation and prospects for the future. Such an approach is key in the combination of activities of the enterprise to achieve the success of its operation. The results of typical feasibility studies demonstrate economic viability of projects for the production of biofuels from straw and their application at boiler plants of the budget-fianced objects for replacement of natural gas.

Read the full article by the link below:

Opportunities for harvesting agrobiomass and production of biofuels by municipal enterprises in Ukraine. Zheliezna T.A., Drahniev S.V., Bashtovyi A.I. Journal "Thermophysics and Thermal Power Engineering", 2019, vol. 41, №2, p. (88-96) (in Ukrainian).

Ukraine is the only country in the world where business entities that burn biomassare taxpayers for carbon dioxide emissions

The issue of taxation of biomass burning boilers is relevant and will not lose its relevance in the future. As, according to estimates of the Bioenergy Association of Ukraine, almost 8 thousand of heat-generating units in Ukraine use biomass and, according to the current Tax Code of Ukraine, are taxed for CO2 emissions.

For reference: from January 1, 2019, the tax rate for carbon dioxide emissions from stationary sources has been raised from 0.41 UAH per ton to 10 UAH per ton, ie increased by 24.4 times. 

Details: UABio Infographics "Ukraine has increased the CO2 tax for biomass plants"

For reference: UABio prepared and sent to Prime Minister of Ukraine Groysman V. B., Minister of Ecology and Natural Resources of Ukraine Semeraka O. M., Minister of Finance of Ukraine Markorovoy O. S., acting Chairman of the State Fiscal Service of Ukraine Vlasova O. S., acting Chairman of the Verkhovna Rada of Ukraine Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety Dombrovsky O.G. and Head of the State Agency on Energy Efficiency and Energy Saving of Ukraine Savchuk S.D. with proposition to exempt businesses which are burning biomass from paying carbon dioxide taxes.

Details: UABio letter on the release the biomass burning plants from the payment CO2 tax

The full articles (in Ukrainian):
A unique tax on the "green" boiler house. Geletukha G.G. Website "Ekonomichna Pravda", 07 June 2019
Biomass boilers in Ukraine need to be exempted from CO2 tax. Geletukha G.G. Website "Agro Portal", 15 June 2019

The article analyzes the current state of production of second generation biofuels in the world and evaluates the possibility of launching such production in Ukraine.

The work is topical due to the fact that liquid biofuels can replace a certain share of motor fuels consumed in Ukraine, thus contributing to the strengthening of the country's energy independence.

The purpose of the study is to assess feasibility of a project on the production of second generation bioethanol in Ukraine; the task is to carry out a preliminary feasibility study for such a project. The research methods include a review of the existing plants that produce second generation biofuels in the world, assessment and analysis of the main technical and economic indicators of a typical project of this type for the conditions of Ukraine.

The obtained results show that under the current conditions (including the petrol price ratio in Ukraine and Europe), the project for the production of lingo-cellulosic bioethanol is feasible only with the s le of the product in the European market (the payback period is within 5 years). For the possibility of profitable production and sale of second generation bioethanol in the domestic market, it is necessary to work owards lowering the capital and operational costs of the project. Ukraine has a big potential of biomass, including lingo-cellulosic feedstock available for the production of second generation biofuels. For the successful implementation of projects in this sector, it is necessary to improve legal basis and conduct scientific and practical work to bring down cost of corresponding technologies.

Read the full article here:

Prospects for the production and consumption of second generation biofuels in Ukraine. Zheliezna T. A., Drahniev S. V., Bashtovyi A. I., Rogovskii I. L. Journal "Machinery & Energetics", 2018, Vol. 9, No. 2, (p. 66)