Bioenergy Association of Ukraine

Draft law on amendments to certain legislative acts of Ukraine on the development of the production of liquid fuel from biomass and the implementation of sustainability criteria for liquid fuel from biomass and biogas for transport

Resolution of the Cabinet of Ministers of Ukraine “On approving the procedure for calculation of weighted average tariffs for heat generated with the use of natural gas for the needs of the population, institutions and organizations financed by the state or local budget, its transportation and supply”
NEURC Resolution “On approval of the procedure for establishing, revising and terminating the “green” tariff for electricity for business entities and private households“
NEURC Resolution “On approval of regulatory acts regulating the activity of the guaranteed buyer and the purchase of electricity at the “green” tariff”

The non-governmental organization Openeurope, with the support of the Ukrainian Union of Industrialists and Entrepreneurs, has prepared a guide for Ukrainian entrepreneurs on the prospects for using biomass, its economic benefits and analyzing the development of this market in the EU and Ukraine.

The materials of the Bioenergy Association of Ukraine were used in the preparation of the analytics.

Statistical report of Bioenergy Europe on Biomass Supply gives an overview on biomass potential in EU28 from such sources like agricultural land and by-products, forestry and waste.

Biomass is a renewable energy source, as it presents any organic matter from plants or animals. Biomass for energy can be in solid, liquid or gaseous form including or not fuel processing steps. Various sources of biomass are the following:

• Forests, such as firewood or logging residues.
• By-products of the wood industry (e.g. bark, saw dust, shavings, black liquor).
• Energy crops (e.g. arable crops: cereal or oil based; perennial lignocellulosic crops: woody and grassy).
• Agricultural by-products (e.g. straw, manure, orchards pruning, pruning).
• Biomass from waste streams (e.g. municipal waste, animal by-products).
• By-products from agro-food industry.
• Aquatic biomass (algae).

Existing studies have calculated the domestically available potential for biomass for energy to be between 169 and 737 Mtoe each year in Europe from 2050 onwards (see figure 1). A literature review concludes that the middle range potential of 406 Mtoe, which is around 24% of the total energy consumption in EU -28 in 2017, can be achieved by 2050 – considering different constraints (e.g. costs). This means that, compared to the actual 144 Mtoe used in 2017, the potential gives enough room to almost triple the amount of bioenergy in the EU-28 energy mix.

European Biogas Association (EBA) released its annual statistical report, which presented data on the European biogas market and European biomethane market, as well as a brief review of policy landscape, as relevant for the biogas and biomethane markets respectively..

The steady growth in the number of European biogas plants over the past decade indicates the robust nature of the sector in the face of considerable political uncertainty. By the end of 2017, there were 17,783 biogas plants and 540 biomethane plants in operation Europe-wide. The total Installed Electric Capacity (IEC) of biogas plants in Europe continued to increase in 2017, growing by 5% to reach a total of 10,532 MW. The electricity produced from biogas amounted to a European total of 65,179 GWh. Biomethane production has also increased, reaching 19,352 GWh or 1.94 bcm in 2017.

Reference: Bioenergy Association of Ukraine is a Member of the European Biogas Association (EBA)

Solid biomass from forests, farms and cities provides a major energy source for heat and power generation, potentially accounting for a fifth of global energy consumption by 2050 amid accelerated adoption of renewables. But wood and crop residues need to be collected from widely dispersed sites and stored for use at the optimal time, and at a cost-effective scale, in district-heating systems, power plants, and combined heat and power plants. This technology brief from the International Renewable Energy Agency (IRENA) examines the multi-dimensional logistical challenges of establishing a steady supply chain for solid biomass.

This multi-dimensional logistical challenge is successfully met in many places around the globe. Wood pellets for power plants are shipped from Southeast Asia to Japan and from Southwestern Europe to the Netherlands, taking advantage of their high energy density, low moisture content and durability, as well as the low cost of sea transport per tonne-kilometre of cargo. Wood chips and pellets also fuel district heating plants in towns and cities of other European countries, such as Lithuania and Ukraine. Straw and other agricultural residues from production of food crops are being collected to provide heat and power in some villages in India. In all these places, an effctive supply chain has been established, with contracts to ensure provision of suffient feedstock at the required quality and cost.

But large quantities of available residues are not being collected. In Sweden and other countries with large managed forests, just a small share of the tree tops and branches left over from logging operations are collected. In Canada, large amounts of dead wood are abandoned in forests after being felled by storms or left standing in forests after insect infestations. On many farms around the world, crop residues not needed to feed or bed livestock are left in the fild or burned to make room for the next planting. Typically, such residues are discarded because the cost of collecting and transporting them is greater than the market value they can fetch. Their enhanced use will therefore require more cost-effctive logistical approaches or highervalue-added applications.

This report of the European Association Bioenergy Europe provides information on the development of the electricity and renewable electricity sector in Europe. A separate chapter of the report is devoted to the production of electrical energy from biomass and biofuels. The share of electricity from biomass in gross electricity gneration in EU28 is 5.6% (15,929 ktoe, 2017), taking 3^rd place among all RES after Hydro and Wind.

Most of the electricity from biomass is generated in Germany (4.379 tktoe), Great Britain (2.740 ktoe), Italy (1.666 ktoe), Sweden (1.038 ktoe) and Finland (1.020 ktoe).

Leaders in installed capacity (over 1000 MW) are Germany (10,007 MW), UK (6053 MW), Sweden (5389 MW), Italy (3859 MW), France (2075 MW), Denmark (2004 MW), Finland ( 1966 MW), Austria (1,560 MW), Spain (1,144 MW), the Netherlands (1,122 MW) and Belgium (1,036 MW). Such countries as Poland (993 MW) and Czech Republic (829 MW) almost reached the leaders in installed capacity.

For reference: In Ukraine, as of 2018, the total installed capacity of facilities generating electricity from biomass was about 100 MW (59,1 MW TPP/CHP on biomass, 22,6 MW of biogas plants, 16,7 MW of biogas from landfill projects; Source: presentation of the UABio Head of the Board Georgii Geletukha at RENPOWER Ukraine 2019).

Ten years after the European Union vowed to produce 20 percent of its energy from renewable sources by 2020, it has made huge progress toward that goal. Now, a new challenge beckons: In 2018, the EU formally set itself a binding target to achieve 32 percent of energy from renewables by 2030.

The latest edition of Dentons’ “Investing in renewable energy projects in Europe” guide surveys an industry at a crossroads. In some jurisdictions, at least in respect of some technologies, the development of new projects has slowed or come to a halt—often by the curtailing of publicly funded financial support or other regulatory constraints. Elsewhere there is a strong development pipeline, and good projects have little difficulty in finding suitable finance, but for the longer term, there are questions about the system impact of high volumes of variable renewable generation and its implications for electricity market design, which are starting to be addressed systematically only now. Europe continues to benefit from trends like falling technology costs worldwide, but it must compete for attention and investment in an increasingly competitive and global sector.

Information about Ukraine is on page 44.

In general, the climate for investments in RES projects in Ukraine improved in 2018 due to a general softening of currency restrictions, stabilizing of the local currency, state policy on deregulation of business and considerable improvement in the situation with financing by local and foreign financial institutions, such as EBRD, NEFCO and BSTDB.

Download the 2019 edition of Dentons’ “Investing in renewable energy projects in Europe” guide. It highlights key regulatory developments and gives snapshots of the prospects for renewable energy projects in 20 jurisdictions across Europe and Central Asia.

Dentons has produced this guide in cooperation with RECHARGE, the global source for renewable energy news and intelligence.

Since its debut in 2007, Bioenergy Europe’s Statistical Report has provided an in-depth overview of the bioenergy sector across EU-28.

Enriched every year with new statistics and findings, it gathers unique data on the dynamics of the European bioenergy market from a growing number of international contributors, helping the industry, decision makers, investors and all bioenergy professionals to better assess the situation of bioenergy in Europe.

Readers will get accurate, up-to-date information on the overall EU energy system, the current state of play of bio-heat and bio-electricity, the availability and dynamics of supply, and much more - including a whole chapter dedicated to statistics on pellet.

>>Download Bioenergy Europe's Statistical Report 2018 you can on Bioenergy Europe website.

UABio has been a Full Member of Bioenergy Europe (formerly known as AEBIOM) Association for 2 years already.

About AEBIOM rebrands to “Bioenergy Europe you can read here.

IEA published an updated report on market trends and trade of wood pellets in the world. Since 2011 global wood pellet market increased annually by 14% in average. The study covers the issues of pellet production, trade and consumption, as well as pellet prices nowadays and in the future in different countries and globally.

Download the Global wood pellet industry and trade study 2017 from the IEA website or by the direct link