Foreign Investments in Bioenergy Production in Ukraine

by Meifan Honcharuk
Friday, October 29, 2021
Foreign Investments in Bioenergy Production in Ukraine

Alternative energy sources in Ukraine. Potential foreign investors

Swiss investors

The Swiss company Clariant, which invests in the construction of enterprises operating on alternative energy sources, is interested in Ukraine as a place to invest in the construction of such enterprises.

Biofuels and biochemicals produced from agricultural waste play a key role in reducing the carbon footprint of humankind. Such investments and the successful commercialization of new technology from Clariant will provide great economic opportunities for the country's agricultural business and significantly reduce greenhouse gas emissions.

Clariant factories

Vadim Ivchenko, a member of the Ukrainian agrarian committee, gave the example of the Clariant agricultural waste plant in Podari (Romania), which produces over 50 thousand tons of cellulosic ethanol per year. It employs up to 800 workers, and they have signed contracts with more than 300 local farmers to ensure the supply of the raw materials.

The by-products of the process will be used to generate renewable energy to make the plant independent of fossil energy sources. Thus, the resulting cellulosic ethanol is a modern biofuel, practically free of carbon.

Cellulosic ethanol is a near-carbon second-generation biofuel. Besides being used as a simple fuel blending solution, its production provides additional opportunities for further applications in bio-based chemicals and clean aviation fuels.

American investors

This is not the first time when foreign investors are interested in the production of alternative energy in Ukraine. According to the people's deputy of Ukraine Vadim Ivchenko, American investors are interested in investing in the development of Ukrainian alternative energy, which is produced from agricultural raw materials and bio-waste.

The production of biofuels from plant materials is a complex and expensive process. Only large enterprises, agricultural holdings can afford it without attracting expensive credit funds. With investments and years of experience from the United States, Ukraine will be able to develop the field of alternative energy.

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