Energy Crops
Energy crops are plants that are grown specially for use as a fuel or for biofuel production.
Why energy crops cultivation has prospectives in Ukraine?
In Ukraine there are 3,000,000 hectares of unoccupied agricultural lands, of which 0.1% is used.
Energy plants can completely replace traditional fuel. Growing energy crops even on 1 million hectares can replace half of all Ukrainian imported gas.
Energy crops cultivation has a quick payback if the government policy is effective. The payback period is about 5 years.
Barriers to energy crops cultivation in Ukraine
Legislative:
Absence of the term “energy plants” in Ukrainian legislation.
The procedure for renting state and communal land is complicated.
Dependence of the state and communal ownership agricultural land rent from normative-monetary valuation.
Administrative:
Short terms of land lease agreements.
Lack of a transparent and stable biomass market.
Financial:
The need to attract significant investments in the initial stages of establishing energy plantations.
Long payback period due to lack of state support
It is necessary to develop and implement a state support system for energy crops cultivation
UABIO Position
UABIO proposals to overcome energy crops cultivation barriers in Ukraine
- Introduce term “energy plants” to Ukrainian legislation: “Energy crops are perennial plants whose root system remains in the soil after harvest and continues the vegetation process. Energy crops are grown in a plantation method with a harvest periodicity from 1 to 5 years. Harvested biomass is used for further energy generation”.
- Lease of state and communal underutilized and degraded agricultural lands for growing energy crops without auction.
- Limiting the maximum rent of state and communal underutilized and degraded agricultural lands during the cultivation of energy crops to 5% of the regulatory monetary value throughout the term of the lease agreement.
- Establishment minimum lease term of state and communal underutilized and degraded agricultural lands for growing energy plants at level 20 years.
- Introduction of state support for energy crops cultivation.
Miscanthus plantation 
Energy willow harvesting
UABIO results
Results were transferred to the State Agency on Energy Efficiency and Energy Saving of Ukraine for further processing.
Draft amendments to the Law “On Alternative Energy Sources”, the Land Code of Ukraine and other legislative acts; and the draft procedure for using state budget funds to support energy crops cultivation:
Proceedings of UABIO working group on state support of energy crops cultivation:
Market assessment from the leading national energy crops cultivation enterprises: Salix Energy, EPG “Yugenergopromtrans”, LLC “Energy Willow”, LLC “Ecosolum”, Institute of Bioenergy Crops and Sugar Beet, LLC “Intubus”:
Analysis of international experience and world practices of state support of energy crops cultivation for implementation in Ukraine.
Related materials:
- About the miscanthus: http://bit.ly/2S85HyA.
