According to the head of the State Energy Efficiency Agency, Hanna Zamazeyeva, creating a biofuel trade exchange with the Ukrainian Energy Exchange will be essential for developing the industry and ensuring its stability in the domestic and foreign markets.
In 2022, 235 MW of heat energy production capacity using alternative fuels was produced in Ukraine. Another 126 MW was generated during nine months of 2023. The industry is viewed as an essential investment contribution to the development of bioenergy and the reduction of dependence on natural gas imports.
Ukraine has great potential to produce biofuel from agricultural waste and can replace a significant part of its natural gas needs through biomass.
However, the instability of biofuel prices and the problems of supply reliability inhibit this industry’s development. Creating a market mechanism for biofuel trading on the stock exchange provides several advantages, such as competitive conditions, transparent pricing, and stabilization of biomass prices.