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OKKO Expands Into Bioethanol: New 83 kt Plant and 60 kt Grain Elevator Coming Soon

by Roman Cheplyk
Monday, May 19, 2025
2 MIN
OKKO Expands Into Bioethanol: New 83 kt Plant and 60 kt Grain Elevator Coming Soon

Ukrainian fuel giant eyes export markets and increases land bank to 50 000 ha

Key Highlights

  • Bioethanol Plant: 83 000 t annual capacity, full launch slated for summer 2026.

  • Grain Elevator: 60 000 t storage facility to open by autumn 2025.

  • Domestic & Export Mix: Output will serve OKKO’s own 5-10 % fuel-blending mandate and overseas buyers.

  • Land Bank Growth: Company adds 17 000 ha in Ternopil and Rivne oblasts, totaling 50 000 ha.

  • Strategic Partnership: Maintains stake in Gadz-Agro (26 000 ha, 10 000 head of cattle).


Bioethanol: From Mandate to Market Opportunity

“We chose a hybrid model: part of production for our network, part for export,”
Vasyl Danylyak, CEO, OKKO Group

  • Regulatory Driver: Since 1 May 2025, Ukrainian fuel must contain 5 % bioethanol—potentially rising to 10 % in line with EU norms.

  • Technical Advisory: U.S. biofuel consultants helped OKKO design an optimal, scalable facility.

  • Supply Chain Synergy: In-house grain from the expanded land bank will feed the plant, ensuring cost control.


New Elevator Boosts Storage & Logistics

Feature Detail
Capacity 60 000 t
Go-Live Autumn 2025
Purpose Secure feedstock for bioethanol and stabilize grain-export flows

By integrating storage and processing, OKKO lowers transport costs and hedges against market volatility.


Land Expansion & Agri-Partnerships

  • New Acres: 17 000 ha acquired in north Ternopil and south Rivne—regions prized for high yields.

  • Total Holdings: 50 000 ha of arable land under the OKKO umbrella.

  • Gadz-Agro Stake:

    • 26 000 ha cultivated

    • 10 000 head of cattle (5 000 dairy cows)

    • Major horticulture operation (fruit segment remains independent)


Timeline at a Glance

Milestone Date
Elevator completion Q3 2025
Bioethanol test runs June–July 2026
Full plant ramp-up Summer 2026

Strategic Implications

  1. Energy Security: Domestic bioethanol reduces reliance on imported additives.

  2. Export Revenue: Surplus output taps EU demand for sustainable fuels.

  3. Vertical Integration: From field to pump, OKKO controls raw materials, processing, storage, and distribution.

  4. Rural Development: New facilities create jobs and modernize agri-infrastructure in western Ukraine.


“Favorable climate and yield metrics drove our land purchases; these assets anchor long-term feedstock supply,”
Vasyl Danylyak

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