Presentation of the Head of the Board of Bioenergy Association of Ukraine (UABio) Georgiy Geletukha at the International Conference "BIOMASS FOR ENERGY 2017" in Kyiv, Ukraine.

1. Development and Prospects of Bioenergy in Ukraine.
Prospects of biofuel market development.
Georgiy Geletukha, PhD
Head of the Board, Bioenergy Association of Ukraine
(UABio)
We are greening the energy!

2. UABio members
Scientific-Engineering Centre
“Biomass”
LLC “Teplodar PV”
LLC “Salix Energy” LLC “Boiler factory “Kriger”
Agricultural company “Danosha” LLC “DELTA Engineering"
NGO “Renewable Energy Agency” LLC “Kyiv Green Energy”
LLC “Kolbe Power Group” LLC “Equator Sun Energy“
TTS Eko s.r.o., Czech Republic LLC “Volyn Kalvis»
Ukrainian heat generating
company "Ukrteplo"
LLC “Smilaenergopromtrans”
Corporation "INKA" LLC “ЕТРС “ENERGYDESIGN”
LLC “Kotloturboprom” LLC “Metropoliya Science and
Technology Company”
LLC “Engineering Centre
“EkoEnergoProekt” SC “Siemens Ukraine”
LLC “ENERSTENA Ukraine”
Foreighn company “Agro Vild
Ukraine”
Physical persons: Maraykin R., Petrov Ya., Ilchuk M.,
Bereznytska M., Savytsky O.,
Epshtein Yu.

3. 1,15
1,95
1,90
2,34
2,42
2,63
2,88
3,62
4,25
4,99
5,71
6,43
7,20
1,12
1,97
1,96
2,40
3,00 3,26
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Volumeofnaturalgassubstitutionby
biofuels,billioncubicmetres/year
5,30
4,11
Targets of the National Renewable Energy Action
Plan up to 2020
Forecast by existing trend
of increasing
Statistical data from Energy Balances
“Total primary energy supply
from biofuels & waste”
(increasing 26%/year)
Statistical data from Energy Balances
“Biofuels & waste production”
(increasing 38%/year)
Trends of bioenergy development in Ukraine

4. Priorities of New Energy Strategy of Ukraine till 2035 Relevant for
Bioenergy (citations)
• Support of competitive market of biofuels development;
• Support of biomass CHP projects development;
• Establishment of conditions for formation of logistic systems and collection
infrastructure for biomass for it future transportation;
• Development of DH systems on renewable energy (biomass pellets, MSW,
etc);
• Increase of stock exchange share for trade of energy carriers including for all
fuels, from 10% in 2016 till 60% in 2035.
http://mpe.kmu.gov.ua/minugol/control/uk/publish/article?art_id=245234085&cat_id=35109

5. Structure of Total Primary Energy Supply According New Energy
Strategy of Ukraine till 2035
Type of energy source
2015
(fact)
2020
(forcast)
2025
(forcast)
2030
(forcast)
2035
(forcast)
Coal 27,3 18 14 13 12
Natural Gas 26,1 24,3 27 28 29
Oil Products 10,5 9,5 8 7,5 7
Nuclear Energy 23 24 28 27 24
Biomass, Biofuels and
Wastes
2,1 4 6 8 11
Solar and Wind Energy 0,1 1 2 5 10
Hydro Energy 0,5 1 1 1 1
Thermal energy 0,5 0,5 1 1,5 2
TOTAL, mill t o.e. 90,1 82,3 87 91 96
http://mpe.kmu.gov.ua/minugol/control/uk/publish/article?art_id=245234085&cat_id=35109

6. Total Amount and Structure of Solid Biofuels in Ukraine (90% from all biofuels
and wastes)
1,90 1,95 2,12 2,35 2,40 2,45 2,55 2,60 2,70 2,80 2,85
0,05 0,07 0,08
0,10
0,40
0,70
1,10
1,45
1,89
3,12
5,26
0,25 0,26
0,30
0,34
0,38
0,40
0,43
0,49
0,54
0,58
0,59
0,00 0,00
0,00
0,01
0,04
0,05
0,10
0,13
0,27
0,70
1,20
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
9,00
10,00
2015 2016 2017 2018 2019 2020 2021 2022 2025 2030 2035
Amountofbiofuels,mill.to.e.
Деревна біомаса Солома, стебла Лушпиння соняшника Енергетичні культуриWood biomass Straw, stalks
Type of biomass 2015 2016 2017 2018 2019 2020 2021 2022 2025 2030 2035
Wood fuels 1,90 1,95 2,12 2,35 2,40 2,45 2,55 2,60 2,70 2,80 2,85
Straw, stalks 0,05 0,07 0,08 0,10 0,40 0,70 1,10 1,45 1,89 3,12 5,26
Sunflower husk 0,25 0,26 0,30 0,34 0,38 0,40 0,43 0,49 0,54 0,58 0,59
Energy crops 0,00 0,00 0,00 0,01 0,04 0,05 0,10 0,13 0,27 0,70 1,20
TOTAL, mill. t o.e. 2,20 2,28 2,50 2,80 3,22 3,60 4,18 4,67 5,40 7,20 9,90
Sunflower husk Energy crops

7. Total heat energy production from RES, 2015-2050
Share of heat energy from RES, %
0,81
1,91
2,92
3,71
4,29
4,52
4,67
4,80
5,18
4,533,882,99
1,18 1,34 1,50 1,83
3,83
3,44
3,05
2,61
1,69
0,91
0,34
0,16
0
2
4
6
8
10
12
14
16
2015 2020 2025 2030 2035 2040 2045 2050
Mтне
Всього тепло у ЦТ та бюджетній сфері з ВДЕ
Всього тепло в промисловості з ВДЕ
Всього індивідуальне опалення з ВДЕ
22%
15%
9%
30%
41%
48%
53%
57%
0%
10%
20%
30%
40%
50%
60%
70%
2015 2020 2025 2030 2035 2040 2045 2050
Heat energy in DH and budget organizations from RES
Heat energy in industry from RES
Individual heating from RES
Mtoe

8. Biomass Potential Utilization
Type of biomass Potential,
available for
energy, Mtoe
Usage of potential
for energy
production, Mtoe
Share of the
usage of
potential, %
2015 2050 2015 2050 2015 2050
Grain straw 3,65 5,48 0,3 2,99 6,8% 49%
Rape straw 0,43 0,65 * Included to the previous one
Primary corn residues (stalks, cobs) 2,32 3,48 0,033 2,27 1,2% 65%
Primary sunflower residues (stalks, heads) 1,22 1,22 0,132 0,98 11% 80%
Secondary agro residues (sunflower husk) 0,5 0,5 0,178 0,49 36% 100%
Woody biomass (firewood, felling residues, wood
processing wastes)
1,39 2,08 1,304 2,173 94% 100%
Woody biomass (dry wood, wood from the
reconstruction of forest belts, wastes from fruit
trees)
1,03 1,03 0,62 1,14 59% 100%
Biogas from agro industrial wastes 0,68 2,38 0,003 0,194 0,5% 8%
Landfill Biogas 0,18 0,6 - 0,087 0% 14,5%
Energy crops
- Willow, poplar, miskanthus (1,5 million hectares
in 2015, 3 million hectares in 2050)
6,58 19,74 0,02 2,50 0,2% 13%
- Maize for silage (0,5 million hectares in 2015, 1
million hectares in 2050)
1,29 5,15 0,003 0,194 0,2% 3,8%
TOTAL 20,19 43,42 2,1 13,02 10% 30%

9. General prediction of RES development
in the heating sector of Ukraine, 2015-2050
Without the involvement of agro biomass usage in heating sector, it is impossible to reach
the goals of the new Energy strategy of Ukraine till 2035 and to ensure the sustainable
development of bioenergy after 2035.
Year MW,
heat
MWe Mtoe NG
replacement,
billion m3
Share
of RES
CO2
reduction,
MtCO2/y
Investments,
million Euro
Working
places
2015 4 943 45 2,14 2,6 9,3% 6,17 1 006 12 931
2020 7 080 255 3,59 4,41 14,9% 8,64 1 857 21 918
2025 11 255 820 5,33 6,57 22,2% 12,87 3 809 41 560
2030 16 218 1265 7,23 8,94 30,2% 17,51 5 706 64 425
2035 24 035 1780 9,89 12,22 41,3% 23,95 8 073 96 768
2040 28 748 2085 11,45 14,13 47,7% 27,70 9 421 115 933
2045 32 355 2335 12,64 15,58 52,6% 30,54 10 486 130 690
2050 35 953 2580 13,81 16,98 57,4% 33,29 11 534 145 420

10. Biomass Utilization for Energy Production in Ukraine (by sectors)
2016 2020 2035 2050
12%
2,5%
9%
0,1%
15%
6%
20%
1%
35%
40%
50%
8%
60%
55%
56%
12%

11. Main barriers for bioenergy development and ways of their overcoming
1. Imperfect tariff system for heat energy from biomass (self cost + 6%).
Decided: 21.03.2017 Verhovna Rada of Ukraine adopted Draft Law № 4334 as of 30.03.2016 (tariff on heat energy
from biomass = tariff on heat energy from natural gas - 10%). The law sighed by the President of Ukraine on 11
April, 2017.
2. Existence of accounts with a special regime of use for payments for heat energy that discriminate heat producers
from alternative energy sources.
It is necessary: to amend Resolution of Cabinet Ministers of Ukraine № 217.
3. Lack of biofuel market development.
It is necessary: to develop a competitive biofuel market (to overcome barriers of access to raw materials for biofuel
production, to promote the emergence of biofuel producers, to create a Biofuel Exchange).
4. The state covers costs of heat energy in non-monetary form (clearing calculations) - non-monetary subsidies.
It is necessary: monetization of subsidies at the level of population, or DH companies.
5. Complicated procedure of land allocation for renewable energy objects.
It is necessary: to adopt draft law № 2529а from 26.08.2015.
6. Imperfect model of DH supply (monopoly position of DH companies, problem with heating network connection for
independent producers of heat).
It is necessary: To establish competitive heat energy market.

12. Existence of accounts with a special regime of use for payments for heat
energy that discriminate heat producers from alternative energy sources.
Heat supplier Consumers
Heat energy
Payments
for heat
energy
and
services
Payments for gas and for producers from gas and from RES
Bank
«special
accounts»
Payments for heat supplier
Proposed payments procedure
Heat supplier Consumers
Payments for natural
gas
(incl. debts for gas)
Heat energy
Payments
for heat
energy
and
services
Payments for gas and for producers of heat from gas
Bank
«special
accounts»
Payments for heat supplier
Payments according to the P KMU No.217
Producer of heat from
gas
Producer of heat from
gas
Payments for natural
gas
(incl. debts for gas)
Producer of heat from
RES

13. Main barriers for biofuel market development in Ukraine
The introduction of a competitive biofuel market in Ukraine is hampered by
the barriers:
1. Complicated access to the felling residues;
2. Absence of the accounting of felling residues;
3. Absence of plans for solid wood fuel harvesting, agreed with the
National Action Plan for Renewable Energy till 2020 and with the
Energy Strategy of Ukraine till 2035;
4. Absence of market mechanisms for the sale of solid wood fuel and
agricultural biomass.

14. Barrier 1. Complicated access to the felling residues
• Clearing the felling sites from felling resides is carried out by permanent forest
users simultaneously with cutting operations.
• Legislation does not foresee using felling residues as raw material for the biofuel
production and does not provide for private companies access to the felling
residues.
Way for overcoming the barrier:
• To obligate permanent forest users to take away felling residues to the nearest
roads for the purpose of biofuel production (for 80 percent of the mass of
felling residues).
• To introduce a prohibition for general and patch burning of felling residues.
Mechanism: It is necessary to amend Forest Code of Ukraine and foresee a new
method of clearing felling sites and prohibition for burning of felling residues.

15. Barrier 2. Absence of the accounting of felling residues
• Felling resides are not calculated, they can not be the subject of contracts, are
not a commodity.
Way for overcoming the barrier:
• implementation of the felling residues accounting by taking into account their
mass in forest felling tickets;
• development by the State Agency of forest resources of Ukraine other
mechanisms for the accounting of felling residues.
Mechanism: It is necessary to amend the Resolution of the Cabinet of Ministers of
Ukraine "On the settlement of issues concerning the special use of forest resources"
and foresee in the form of forest felling ticket accounting of the mass of all felling
residues.

16. Barrier 3. Absence of plans for solid wood fuel harvesting, agreed
with the National Action Plan for Renewable Energy till 2020 and with
the Energy Strategy of Ukraine till 2035
• Permanent forest users don't have plans for increasing the volume of wood fuel
harvesting, which threatens the realization of the National Action Plan till 2020 and the
Energy strategy of Ukraine till 2035.
Way for overcoming the barrier is imposing on permanent forest users an obligation to
carry out harvesting of solid wood fuel in certain volumes.
Mechanism: To adopt the Resolution of the Cabinet of Ministers of Ukraine and to
authorize forest owners to impose on permanent forest users an obligation to harvest
corresponding quantities of solid wood fuel.
The following volumes of solid wood fuel harvesting by the permanent forest users are
substantiated:
million
cubic
meters
2016 2018 2019 2020 2021 2022 2025 2030 2035
Firewood 6,92 7,20 7,40 7,60 8,00 8,30 8,60 9,20 9,50
Woodchips 1,10 1,40 1,70 2,10 2,60 3,10 3,30 3,50
Total 6,92 8,30 8,80 9,30 10,10 10,90 11,70 12,50 13,00

17. Barrier 3. Absence of market mechanisms for the sale of biofuel
• On existing auctions for the sale of unprocessed wood, selling of firewood and felling
residues is not carried out.
Way for overcoming the barrier is creation of Biofuel Exchange.
Mechanism:
• Amendments to the Law of Ukraine "On Alternative Fuels" and foreseeing the main
provisions for establishing of Biofuel Exchange.
• Approval the Biofuel Exchange Statute by the Regulation of CMU.
Expected impact:
• creation of a exchange instrument for the sale of solid biofuels;
• decrease and equalization of prices for solid biofuels;
• transparency of procurements;
• introduction of standards for the solid biofuel sold and purchased on Biofuel Exchange.

18. Specific aspects of the Biofuel Exchange creation
• For creation and efficient operation of Biofuel Exchange in Ukraine, it is necessary to
oblige state and communal enterprises to sell and buy biofuels on the Biofuel
Exchange.
• The imposition of such a duty is impossible without the use of «public enforcement».
• Only state authorities can apply state enforcement, but by law they can not create
commodity exchanges.
Way for overcoming the barrier is creation of new Biofuel Exchange (as an exception,
with the participation of state authorities).
Mechanism:
Amendments to the Law of Ukraine "On Public Procurement" and imposing the
obligation on state and communal enterprises to purchase and sell a certain amount of
biofuel on the Biofuel Exchange (with information transfer through the Prozorro system).

19. Georgiy Geletukha
tel./fax: +380 44 332 9140
E-mail: geletukha@uabio.org
www.uabio.org
Thank you for attention!
Welcome to Ukraine and to UABio!
We are greening the energy!