Workshop “PIB Biobased Ukraine Business Development and Investment. Exchange of expertise to formulate bankable projects” was held on November 22, 2018 in Kyiv, Ukraine, and was dedicated to the exchange of expertise to formulate bankable projects for PIB members and their Ukraine counterparts through a crash course business development for bankable projects together with examples by PIB members to show the potential of their technologies. Event was organized by Partners for International Business project: Biobased Energy Ukraine, the Embassy of the Kingdom of the Netherlands in Ukraine, State Agency for Energy Efficiency and Energy Saving of Ukraine (SAEE), Bioenergy Association of Ukraine (UABio) and association “Ukrainian agribusiness club”.

The Workshop planned for 65 participants actually brought together 98 participants, including representatives of agricultural companies, academic institutions, municipalities, governments, financial institutions, consulting organizations, equipment providers and media. 

The Head of the State Agency of Energy Efficiency and Energy Saving of Ukraine Sergii Savchuk opened the Workshop and expressed the confidence in workshop usefulness, because of wide range of practical questions that could be discussed, in particular technology practices and project investment opportunities.  Mr. Savchuk mentioned: "Additional investments in specific bioenergy projects are important for Ukraine, as it brings new jobs, money inflow and gas replacement (in 2017 Ukraine paid 3.8 billion US dollars for imported natural gas".

Agricultural Counsellor of the Embassy of the Netherlands in Ukraine Carolien Spaansin her opening word noted that renewable energy is very important for climate conditions, energy security and economic development (particularly in the regions). Ms. Spaans said that companies from the Netherlands and Ukraine can share their business cases and in the end come to bankable projects. Ms. Spaans mentioned the workshop "Agricultural residues for bioenergy. Problems and solutions" that was held on September 27, 2018, in Kyiv (Ukraine) and stressed that during this workshop participants could make concrete practical steps to achieve projects' bankability.

International coordinator of Partners for International Business (PIB) project: Biobased Energy Ukraine, Hans van Klink introduced PIB project and mentioned sorts of biomass PIB are working with: reed, organic wastes, Miscanthus and switchgrass as a source for valuable materials, sugar beet as the perfect source for valuable materials and chemicals, wood wastes for local energy production. Mr. Klink mentioned that PIB is in cooperation with Kara, DSD BV, BTG-BTL, HoSt bv, Roof Clix, Saxion University and Wageningen (EU funding projects). Mr. Klink stressed that PIB sees potential in Ukraine and concluded that PIB was looking for Ukrainian partners willing to cooperate and work together in investment projects, R&D projects and set up concrete business projects.

The Workshop included the welcome and opening part, the presentation session on market supporting instruments, including Flash course Business Development in Bioenergy, session on financing of biobased projects, presentation of business cases and interactive session, including matchmaking and discussion in groups of different types of biobased projects with reporting per group and short discussion, followed by conclusions of the Workshop. 

In the program of the first part of the Workshop there were such sections: 

1) Market supporting instruments; 
2) Financing a biobased project; 
3) Projects presentations (bioethanol production plant; biogas complex for power production from biogas; re-equipment of municipal gas boiler houses).  

Some quotes from the speakers from the first part of the Workshop:

Georgii Geletukha, Head of the Board of Bioenergy association of Ukraine: "Oil products, natural gas and coal are three main Ukraine’s import products in 2017 – that cost more than 11 billion of US dollars – and bioenergy can reduce this import for all three fuel types".

Frank Stiksma, Saxion University of Applied Sciences in the framework of the Flash course Business Development: "The way of making business is changing from money oriented to impact that business makes oriented. Mr. Stiksma stressed that renewable energy projects are about long-term thinking and then compared conventional (based on financial, single principles) and new business development (based on multiple, shared, collective principles) business cases".

Oleksandr Nikolaienko – Principal of Energy Efficiency and Climate Change Department of European Bank for Reconstruction and Development (EBRD): "EBRD is the largest international investor in the private sector in Ukraine (сurrent investments in energy efficiency RES projects in Ukraine - 3 billion Euros). The capacity of EBRD financed projects on biomass and biogas in Ukraine in 2019 would be doubled compared to 2018".

Rodion Morozov, Ukrgasbank: "Ukrgasbank together with IFC in funding 25% of RES capacities Ukraine. Since 2016 Ukrgasbank has already financed 140 projects on 479 million Euros with total 814 MW capacity (mainly solar power plants). Nevertheless, Ukrgasbank has financed 4 biomass projects (Power plant/CHP) and 8 biogas projects (degasification of landfills).

Borys Rachynsky, UkrTeplo group of companies: "Ukrteplo Group is establishing projects on biomass boiler houses, hydro power plants, solar power plants, biogas, boiler production and energy willow. Project Rivneteploenergo with 35 boiler houses of a district heating network of 868 MW total capacity we bought with the aim to re-equipped existing gas boiler houses for use of biomass and construct biomass CHPs and new biomass boiler houses. The project’s investment plan for 2019-2022 envisages the implementation of 140,7 MW capacities that requires 40 million EUR of investments".

Hans van Klink, Director of the Project Development of Dutch Sustainable Development BV (DSD BV): "Direct Processing with BetaProcess advantages are in a higher yield of ethanol (100-150 liters of ethanol from 1 t of sugar beet, compared to 90 liters of ethanol with the existing technology. Direct processing is a starting point for using sugar beet as a raw material for the chemical industry and as a crop for the most attractive circle economy model and that DSD BV is also looking for a partner in Ukraine for market implementation".

And also Kees Kwant, an expert from the Dutch Entrepreneurship Agency (RVO), on behalf of colleagues from the Dutch Trade and Investment Fund (DTIF), presented the target group, countries, schemes, co-financing mechanisms and guarantees for obtaining a loan from DTIF, local banks and EU financing companies. Yevgen Lukashevych, Yuzefo-Mykolayivska Biogas Company LLC, presented the experience of a company along with the experience of a general contractor – Ukrainian Technological Company (UTC) in implementing bioenergy projects. Oleksiy Krivolapov, Astarta, presented Astarta, a large agroholding company with 8 sugar factories in the Vinnytsia, Khmelnytsky, Poltava and Kharkiv regions, and a biogas plant at the Globino sugar plant. Mr Krivolapov said that the company is interested in building a bioethanol plant on molasses and sugar beet. Oleg Yovzhenko, Pro-Energy presented a biogas plant with a capacity of 2.57 MW. Simple payback for the project - 6.2 years.

The section of presentations was followed by an evaluation of business cases of previous speakers by Frank Stiksma. Mr. Stiksma gave a feedback to the presented business cases and general recommendations from Saxion, based on the approach presented at the start and asked some questions. Mr. Stiksma had public discussion with Borys Rachynsky (UkrTeplo) asking about what was the company’s need to scale up the current business and about economic calculation results veracity, and expected risks and with Oleksiy Krivolapov (Astarta) asking about what the company needed from the government; what were the main problems that stopped business case development and whether the business case was profitable and what were the main investment risks of the bioethanol project. 

Then, participants were split up into three groups to discuss questions/projects connected with biogas, biomass heating and ethanol production from sugar. Then the leader of each group (Kees Kwant, Hans van Klink, Georgii Geletukha) presented the main topics that were discussed in the group, the main problems discussed and the group's suggestions for their solution.

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MATERIALS are available by the link here: https://www.biobased-ukraine.nl/next-event-in-kyiv-workshop-on-formulating-bankable-biobased-energy-projects-2/

or below:

  1. Introduction of Partners for International Business project: Biobased Energy Ukraine – Hans van Klink,  Project Coordinator (download presentation eng | ukr)
  2. Current State and Prospects of Bioenergy Development in Ukraine – Georgii Geletukha, Bioenergy association of Ukraine (download presentation eng | ukr)
  3. Flash course Business Development: with instruction to the potential project developers in the future – Frank Stiksma, Saxion University of Applied Sciences (download presentation eng | ukr)
  4. Financing bioenergy projects: EBRD experience – Oleksandr Nikolaenko, EBRD (download presentation eng | ukr)
  5. Financing eco-projects on biofuels – Rodion Morozov, UkrGasBank (download presentation eng | ukr)
  6. Dutch Trade and Investment Fund – Kees Kwant, RVO (download presentation eng | ukr)
  7. Implementing a bioenergy project: experience of a company – Yevgen Lukashevych, Yuzefo-Mykolayivska Biogas Company (download presentation eng | ukr)
  8. Business case DSD BV – Oleksiy Krivolapov, Astarta (download presentation eng | ukr)
  9. Business case of a Biogas complex for power production from biogas 2.57 MW – Oleg Yovzhenko, Pro-Energy (download presentation eng | ukr)
  10. Business case of re-equipment of municipal gas boiler houses with Kara biomass boilers in Rivne oblast – Borys Rachynsky, UkrTeplo (download presentation eng | ukr)
  11. Business case Direct Processing with Betaprocess – Hans van Klink, DSD BV (download presentation eng | ukr)
  12. Feedback general recommendations from workshop participants (download presentation eng | ukr)

Photos from Workshop "PIB Biobased Ukraine Business Development and Investment", November 22, 2018, Kyiv (Ukraine)Workshop "PIB Biobased Ukraine Business Development and Investment", November 22, 2018, Kyiv (Ukraine)