To answer the question we will use 5 Why? approach.

  1. Why? Biofuel has high humidity and ash content, extraneous matter, and different fractional composition.
  2. Why? Biofuels are produced from illiquid timber, wood, and agricultural residues without controlling the quality of the raw materials.
  3. Why? Residues are cheap raw material, but quality control requires investment and additional costs.
  4. Why? There are no requirements for the quality of raw materials and final products. The contracts specify only permissible limit values, the price also does not depend on quality, which implies the energy content of the fuel.
  5. Why? Low level of competition in the biofuel market, the poor motivation of consumers to pay for quality, and also traditional metering in units of mass or volume.

What does UABIO offer?

Creation of the biofuel exchange in Ukraine and accounting of biofuels in energy units.

Why is this a decision?

The exchange may establish requirements for the quality of biofuels and ensure compliance with them. And the quality of biofuels will be provided by suppliers according to clear requirements of the exchange.