In 2018, Ukraine exported more than 2.3 million tons of raw biofuel in the form of firewood, wood chips, briquettes, and pellets, of which 1.2 million tons is fuel (pellets, briquettes) for a total of about 3 billion USD. Only this volume of fuel raw material is equivalent to 600 million m3 of natural gas for the purchase of which at a low price (215 dollars/thousand m3 = 5680 UAH/thousand m3, May 2019), Ukraine spent more than 3.4 billion UAH. For a similar volume of gas in January (price 8890 UAH/thousand m3), we paid 5.3 billion UAH.

Yevhen Oliynyk, Member of the UABio Board:

"Is it advisable for the country to export cheap biofuels and to import expensive natural gas themselves? Energy independence should be a priority of public policy aimed at stimulating the internal use of biofuels for energy production".
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From January 1, 2019, the Law of Ukraine "On Amendments to the Tax Code and Some Other Legislative Acts Concerning the Improvement of Administration and Review of Some of the Tax and Charge Rates" №2628-VIII from November 23, 2018 came into force.

According to the adopted Law, amendments were made to the Tax Code of Ukraine (TCU) in part of the carbon dioxide tax. In particular, the tax rate for carbon dioxide emissions from stationary sources has been raised from 0.41 UAH per ton to 10 UAH per ton, ie increased by 24.4 times. Business entities that burn biomass on stationary sources of pollution are also taxpayers for carbon dioxide emissions (according to Article 240 TCU). 

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From January 1, 2019, the Law of Ukraine "On Amendments to the Tax Code and Some Other Legislative Acts Concerning the Improvement of Administration and Review of Some of the Tax and Charge Rates" №2628-VIII from November 23, 2018 came into force.

According to the adopted Law, amendments were made to the Law of Ukraine "On Land for Energy Facilities and the Legal Regime for Special Zones of Energy Objects", in particular, to Part 2 of Art. 14:

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New Infographics on Biogas Projects in Ukraine from Platform SAF Ukraine.

Biogas projects in Ukraine are developing rapidly. As of the beginning of 2019, there were only 18 projects, 12 of which were authorized to use the "green" tariff (as of 01.01.2019). The total installed capacity of the projects at the end of 2018 amounted to 27.3 MW of electricity (the capacity of individual projects ranges from 0.125 to 5.7 MW). In the near future, at least doubling of electricity capacities from biogas complexes is expected.

Full Infographics "Biogas projects in Ukraine in 2017-2018"

Platform SAF Ukraine works within the framework of the EBRD program FINTECC  to support the sustainable development of agribusiness in Ukraine.

On 20 December 2018, the State Statistics Service of Ukraine issued the Energy Balance of Ukraine for 2017.

According to the Balance, the share of renewable energy sources (RES) in the total primary energy supply in 2017 was 4.4% (3.8% in 2016). This growth rate is in line with the annual pace of RES development in Europe.

Like the previous year, biofuels and waste accounted for the biggest share in the structure of renewable energy production in 2017 – 80%.

The given data show another significant step in the development of the bioenergy sector in Ukraine. For example, the volume of the "production of biofuels and waste" amounted to 3618 ktoe in 2017 (against 3348 ktoe in 2016), and the volume of the "total supply of primary energy from biofuels and waste" was 3046 ktoe in 2017 (against 2832 ktoe in 2016) (Fig. 1). The difference between the indicators corresponds to exports of biofuels, which came to 542 ktoe in 2017 (554 ktoe in 2016).

Supply of primary energy from biofuels and waste in the amount of 3046 ktoe is equivalent to replacing about 3.8 billion m3 of natural gas in 2017.

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Fig. 1. Increase in the production of energy from biofuels in Ukraine  during 2010-2016.On 20 December 2017, the State Statistics Service of Ukraine issued the Energy Balance of Ukraine for 2016 (the express-issue N 506/0/08.4вн-17 of 20.12.2017).

According to the Balance, the share of renewable energy sources (RES) in the total primary energy supply in 2016 was 4.0% (3.0% in 2015). This growth rate is in line with the annual pace of RES development in Europe.

Like the previous year, biofuels and waste accounted for the biggest share in the structure of renewable energy production in 2016 – 81%.

The given data show another significant step in the development of the bioenergy sector in Ukraine. For example, the volume of the "production of biofuels and waste" amounted to 3348 ktoe in 2016 (against 2606 ktoe in 2015), and the volume of the "total supply of primary energy from biofuels and waste" was 2832 ktoe in 2016 (against 2102 ktoe in 2015) (Fig. 1). The difference between the indicators corresponds to exports of biofuels, which came to 553 ktoe in 2016 (539 ktoe in 2015).

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bioenergy growth 2015 enOn December 20, State Statistics Service of Ukraine has published the energy balance of 2015. UABio experts have analyzed the energy balance and prepared the infographics about the biofuels contribution from 2010 to 2015 (recalculated on the substitution of natural gas in billion m3/year).

On an indicator "Production of Biofuels & waste" in 2015 natural gas substitution with biofuels was 3,26 billion m3/year, and the average growth rate in the period 2010-2015 amounted 38%/year.  

On an indicator Total Primary Energy Supply of Biofuels & waste natural gas substitution with biofuels in 2015 was 2,63 billion m3/year, and the average growth rate in the period 2010-2015 amounted 26%/year.  

The difference between production and supply of biofuels is export outside Ukraine in the form of pellets, wood chips, firewood and other biofuels. These exported resources can be easily attracted to the domestic market of Ukraine under favorable conditions created.

In particular in the energy balance states: "In 2015 the largest share in the structure of RES production belonged to biofuels - 81.3%."

In 2015 the contribution of biofuels to Total Final Consumption was 3.6% and 2.3% of the total primary energy supply.

Energy balance of Ukraine is available on the State Statistics Service website or here.

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