Ukraine has significant agrobiomass resources in agriculture. These resources can be used to replace fossil fuels and reduce greenhouse gas emissions due to the introduction of bioenergy projects in the agro-industrial complex. Such policy is in line with the goals of the Energy Strategy of Ukraine.
Currently, these resources are not used due to the complexity of the organization of agrobiomass “procurement-supply” chains; high investment costs for specialized bioenergy equipment; high risks of establishing energy plantations on unproductive, degraded, and man-made contaminated lands; difficulties in efficient incineration of agricultural waste and residues.
The six current state programs to support the agro-industrial complex do not provide the necessary incentives for the introduction of energy production from biomass.
Among the available opportunities, agricultural producers can receive partial compensation for the cost of certain types of agricultural machinery and equipment of domestic production, including grain dryers, biomass heat generators, equipment for the production of fuel briquettes and pellets, trailers for biomass transportation, which are already included in the Updated list[1] of domestic machinery and equipment for the agro-industrial complex. However, this is not enough.
Opportunities for the bioenergy technologies development in agriculture
- Given the need to introduce efficient modern heating systems in the agro-industrial complex, which can use cheap local agrobiomass, experts of the Bioenergy Association of Ukraine (UABIO) propose to update the list by adding specialized domestic boilers for burning agrobiomass.
- In addition, there is a need to expand existing programs of state support for agriculture by developing a new program of state financial support of businesses or agricultural producers for the development of energy production from biomass in the agro-industrial complex. It will help these companies to implement bioenergy projects for the procurement and supply of agricultural waste and energy residues for energy needs; organize the production of solid, liquid biofuels and biogases; and ensure production of heat and electricity in rural areas.
- It should be noted that budget funds can be provided to businesses on a non-refundable basis by partial reimbursement of the cost (excluding value-added tax) of constructed, reconstructed, and put into operation facilities as well as fixed assets and goods purchased by business entities, work performed and services received. It is about projects for agrobiomass storage and its processing into liquid, solid biofuels, and biogases or production of heat and electricity for the agro-industrial complex needs.
- Download the letter of Bioenergy Association of Ukraine on the introduction of state support for the development of energy production from biomass in the agro-industrial complex (in Ukrainian) to the Minister of Economy, Trade, and Agriculture of Ukraine, Acting Minister of Energy of Ukraine, Acting Head of the State Agency on Energy Efficiency and Energy Saving of Ukraine).