The Verkhovna Rada of Ukraine adopted a law on amendments to some legislative acts of Ukraine regarding the mandatory use of liquid biofuel (biocomponents) in the field of transport (No. 3356-d dated November 5, 2020). Let’s talk in more detail.
Attempts to stimulate the production of bioethanol by adopting a law on the obligation to add it to gasoline on the domestic market have been carried out regularly in Ukraine since 2003. Finally, we have legislation to stimulate bioethanol production.
The approved draft law provides for the introduction of a mandatory share of the content of liquid biofuel (biocomponents) in the volume of automobile gasoline.
From May 1, 2025, the content of liquid biofuel must be at least 5 percent (by volume) with an absolute error of determination of ± 1 percent. This applies to all volumes of motor gasoline sold from fuel wholesalers and fuel retailers, except for gasoline with an octane number of 98 and higher and gasoline supplied for the needs of the Ministry of Defense of Ukraine, the central executive body that implements state policy in the field of of the state material reserve, and to create minimum reserves of oil and oil products.
In addition, liquid biofuels taken into account for compliance with the mandatory share must meet sustainability criteria from June 1, 2025.
- The assessment of compliance with the content of liquid biofuel in the sold volumes of automobile gasoline and the compliance of liquid biofuel with sustainability criteria is entrusted to the State Agency on Energy Efficiency and Energy Saving of Ukraine.
- The procedure for the management of accounting for the content of liquid biofuel in motor fuel and alternative motor fuel and its compliance with sustainability criteria will be approved by the Ministry of Infrastructure of Ukraine.
What else matters?
Economic entities that manufacture and/or import fuel and/or carry out wholesale fuel trade are granted the right to add liquid biofuel to motor fuel and alternative motor fuel in quantities that meet the requirements of regulatory and legal acts.
This can be done on the basis of issued licenses for the right to manufacture fuel and wholesale fuel trade. At the same time, a restriction is applied that the total capacity of located containers (reservoirs) used for fuel storage is not less than 1,500 cubic meters. The business entity that, on the basis of the corresponding license, carries out such activities, must be the owner of an accredited testing laboratory or enter into a contract with an accredited testing laboratory for determining fuel quality indicators.
A document on the quality of such fuel (quality passport) is drawn up for each batch of motor fuel and/or alternative motor fuel containing liquid biofuel (biocomponents) based on the results of testing in an accredited testing laboratory.
For automobile gasoline imported to the territory of Ukraine or produced in Ukraine without the content of a legally defined mandatory share of liquid biofuel (biocomponents) or with an insufficient amount of liquid biofuel, liquid biofuel is added to comply with the mandatory share by business entities that carry out activities with manufacture and/or import fuel and/or carry out wholesale fuel trade in the customs territory of Ukraine.
The technical characteristics of liquid biofuel, motor fuel and alternative motor fuel must meet the requirements of technical regulations, harmonized European standards and other legal acts.
Failure to comply with the requirements for the sale of gasoline containing a mandatory proportion of liquid biofuel and late or failure to provide information on the content of liquid biofuel (biocomponents) in the volume of fuel sales are classified as offenses for which fines are provided.
Sustainability criteria
Liquid biofuel (biocomponents) and biogas intended for use in the field of transport, regardless of the place of cultivation of the raw materials for their production, must meet the sustainability criteria provided for in the law.
Sustainability criteria are the requirements met by liquid biofuels (biocomponents) and biogas intended for use in the field of transport. In particular, indicators of the reduction of greenhouse gas emissions from the use of these types of biofuels and the prohibition of the use of certain land plots for obtaining raw materials necessary for the production of such types of biofuel.
The requirements for reducing greenhouse gas emissions will be determined in accordance with the national standard. Regarding the ban on the use of certain land plots, the law includes land plots of high importance for biological diversity, land plots with high carbon reserves, and peatlands.
Entities that produce and sell liquid biofuels and biogas for transport are required to confirm the compliance of these types of biofuels with sustainability criteria.
The procedure for confirming compliance with the sustainability criteria of liquid biofuel (biocomponents) and biogas intended for use in the transport sector will be approved by the Cabinet of Ministers of Ukraine, taking into account Ukraine’s obligations under the association process with the EU. Confirmation of compliance is carried out with the help of an independent audit according to voluntary certification schemes recognized by the European Commission.
Situation in Ukraine
There are 22 small bioethanol plants in Ukraine, which in total can produce about 500 million liters of biofuel per year. Of them, 7 are new private factories, the rest are reconstructed old state factories.
Even before the start of the full-scale invasion of Russia, only a few bioethanol plants were stably functioning at full capacity in the country.
What will this law achieve?
The adoption of the law on the mandatory addition of biocomponents to gasoline on the domestic market will bring Ukraine closer to EU standards, give impetus to the production of advanced bioethanol and promote the country’s progress on the path of green transformation.
This analysis was prepared for SAF Ukraine by Anna Pastukh, an expert of the Bioenergy Association of Ukraine.