Abstract

The Ukraine has a big, largely undeveloped, potential for the production of biomass feed¬stocks. Western Europe provides a large import market for biomass feedstocks or bio¬fuels. At the same time the EU and The Netherlands can serve as a provider of knowledge and technology for developing a sustainable bioenergy industry in the Ukraine. Therefore The Netherlands Ministry of Agriculture, Nature and Food Quality has requested a report on the opportunities for collaboration with the Ukraine in the field of bio-energy with the aim of providing companies in The Netherlands with relevant information on the subject.

The main drivers for bioenergy production in the EU are sustainability (mainly reduction of GHG emissions) and security of energy supply. In The Netherlands local production of feed¬stocks is limited and free trade policies are traditionally favored. This has contributed to large import volumes of biomass for electricity and heat production. In recent years the import of (feedstocks for) biofuels has also taken off. The Netherlands sees itself and the harbor of Rotterdam in particular as the main entry point for biomass into Europe. The local conversion of biomass into bio-fuels and chemicals is envisioned for coming decades.

The Ukraine has undergone a large decline in industrial productivity (and energy use) and a sharp decline in agricultural productivity since independence in 1990. Though these sectors have been recuperating in the last decade restructuring is still ongoing. The energy infrastructure of the Ukraine is characterized by a large dependence on imported energy sources (particularly natural gas) and a low energy efficiency. The agricultural sector is characterized by a low productivity (per ha) but also by a very large untapped potential especially by using existing agricultural. The potential for biomass and bioenergy production is very large in the Ukraine. Still, bioenergy only accounts for 0.65% of primary energy use. Though bioenergy is enjoying increasing interest in the Ukraine policies lack implementation or are still under development.

Many business opportunities especially in the energy and bioenergy sector exist. Ukraine does have the highest biomass potential in Europe which has largely been untapped and labor, especially in rural areas, is inexpensive. This provides many opportunities for inves¬t¬ments in local bioenergy production and in the export of bioenegy feedstocks. Ukraine is already an important supplier of feedstock to Europe, exporting rape seed for biodiesel production and biomass (pellets) for electricity and heat production. Opportunities exist in; upgrading of energy infrastructure incorporating biomass; setting up sus¬tainable biomass production; transfer of knowledge and expertise; developing the oil seed and biodiesel sectors; setting up systems for complying/ monitoring of sus¬tainable bio¬mass production; development of a local biofuels market and infrastructure; rural biogas production in concert with expanding animal production; financing of the bioenergy sector.