Opportunities for utilization of biomass residues in the renewable sector in Ukraine – project conclusions

Brochure “Opportunities for utilisation of biomass residues in the renewable sector in Ukraine” was published by NEFCO and provide information about key problems and recommendations for Ukraine.

This project explored new opportunities for producing renewable energy from various biomass types, such as agricultural crop and forestry residues, and livestock residues and industrial organic by-products. These case studies centered on converting wood residues into woodchips and pellet fuel as well as a biodegradable feedstock into biogas and digestate, which can further be used as fertilizer. 

UABIO expert Yurii Matveev singled out key aspects.

The main obstacles to the development of bioenergy in Ukraine

• Underdeveloped biofuel/biomass market, short-term contracts for fuel/raw materials supply;
• Low attractiveness of biomass/biogas projects due to low green tariffs, high discount rates, limited third-party access to heat networks;
• The complicated procedure of project development in parallel with a high degree of institutional challenges;
• Complicated road access to forest biomass;
• Practical problems and lack of experience using agricultural biomass as fuel or raw material;
• Lack of certification for organic fertilizer and farming/lack of machinery for digestate handling;
• Lack of support for biomethane and lack of legislation for biomethane production.

It will be recalled that a two-day presentation of the project “Opportunities for utilisation of biomass residues in the renewable sector in Ukraine” funded by the Ministry of Foreign Affairs of Finland from the Finland-Ukraine Trust Fund took place on February 5-6 in Kyiv. The overall management of project was provided by the Nordic Environment Finance Corporation (NEFCO). In Ukraine this process was supervised by the State Agency on Energy Efficiency and Energy Saving of Ukraine. The event was a great opportunity for exchange of experience between Ukrainian and Finnish companies in the bioenergy field. Details and presentations on the UABIO website: 1 day; 2 day.

Recommendations for Ukraine based on the European experience

1. Introduction of a biomass exchange (electronic biofuel trade system) biomass quality assurance.
2. Development of a competitive heating market in which independent producers can connect to the district heating network.
3. Development and promulgation of the state strategy for the use of agricultural biomass for energy.
4. Development of the organic fertilizer market in particular the usage of digestate from biogas plants.
5. Increasing financing for state forest enterprises and facilitating the updating of their machinery and technical handling basis.
6. Establishment of strategic targets for biomethane production and use as engine fuels. Adaptation of a legal framework for biomethane production and consumption support.
7. Green tariff differentiation; implementation of a special tariff for small-scale projects; extending the FIT validity period.

Key figures for woody and agricultural residue biomass market development in Ukraine from 2019–2035

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Source: Brochure “Opportunities for utilisation of biomass residues in the renewable sector in Ukraine”.