OKKO will receive a €60 million loan from the EBRD for the construction of a bioethanol plant
The European Bank for Reconstruction and Development (EBRD) provides a loan of €60 million to the Ukrainian private LLC “Lan-Oil” for the construction of a new private biofuel plant in Ukraine. This is the first such project since the beginning of the russian invasion.
The project is implemented by the Galnaftogaz concern and the OKKO group of companies. As of December 2023, the Galnaftogaz concern owned and operated 396 gas stations under the OKKO brand.
The biofuel produced at the new plant will meet the requirements of the EU Renewable Energy Directive (RED III).
The project will contribute to:
- overcoming the challenges faced by the company,
- professional reintegration and access to services for war veterans,
- training of women who will fill traditionally “male” positions in the logistics division of “OKKO”.
EU guarantees
The loan is accompanied by a financial guarantee from the European Union within the investment component of the Ukraine Facility (Pillar II) program.
This is part of the new Ukraine Investment Framework program with a total budget of €150 million, which was presented at the Conference on the Reconstruction of Ukraine in Berlin. The signed document will contribute to the energy security of Ukraine and the decarbonization of the energy sector thanks to the creation of a domestic source of bioethanol supply, the use of which ensures a reduction of greenhouse gas emissions by 70% compared to traditional types of fuel.
The program provides support for new and existing climate technologies in accordance with the detailed EU Plan for Ukraine, particularly in the energy sector.
We congratulate OKKO and are glad that Ukrainian bioenergy is developing even in the conditions of war.
Also, our team is grateful to the EBRD for supporting such important initiatives. It should be noted that the Bank has already allocated more than €4.2 billion in Ukraine since the beginning of the war.
Source: AgroTimes
