MHP is set to build a cogeneration plant utilizing sunflower husks
MHP, a member of UABIO, plans to raise $16.8 million to build a modern 10 MW cogeneration plant in the Vinnytsia region.
The energy modernization project was included in the Ukraine Investment Catalogue 2026, which was presented at the international conference on Ukraine’s recovery (URC2026) in Gdańsk.
About the facility
The new cogeneration plant will run on sunflower husks, ensuring a closed-loop production cycle. The facility will generate 233 GWh of “green” electricity per year.
MHP will use the energy generated to meet the needs of the holding company’s nearby oil extraction and feed mills. This will significantly increase the enterprises’ energy self-sufficiency, and any commercial surplus will be sold on the wholesale market.
The total cost of the investment project is estimated at $21.1 million. Of this amount, the company is prepared to finance $4.3 million with its own funds, and plans to raise the remaining $16.8 million through project financing or equity capital. The estimated internal rate of return (IRR) for the future facility is 18.4%.
Project status
The company has now fully completed the feasibility study and officially finalized the lease of the land plot. The next steps will be selecting the equipment and developing the project documentation. The cogeneration plant is scheduled to begin operations in 2029.
The company’s biomethane
As of 2025, the company operates two biogas plants with a total capacity of 18.9 MW. In addition, in 2024, MHP completed the construction and commissioning of new facilities for the production of biomethane and bio-LNG. Commercial production of biomethane began in the Dnipropetrovsk region in early 2025.
Sources: Latifundist.cоm, Forbes Ukraine.
