How to replace gas? Prospects of the Ukrainian market of pellets in 2017

Because of the dependence on imported energy and higher prices for natural gas, bioenergy is one of the main strategic directions. The potential of biomass as an energy source is considered high. Despite this, the pace of development of the sector, significantly behind the European. According to a recent study by the Ministry of Energy and Coal Industry of Ukraine, only 1% of the total electricity comes to alternative resources.

In Europe actively talking about plans for reducing the emission of carbon dioxide into the atmosphere, the production abandons coal in favour of biomass, and the government initiative supports investment projects. Due to lack of regulation and the unstable economic situation in Ukraine, the majority of investment projects delayed. More than half of the production capacity for the production of pellets for export work, trying to meet the high demand in European countries. Domestic consumption is concentrated within areas where implemented small projects, mostly boilers that serve public or private industrial enterprise.

Still, the year 2017 promises to be the starting point not only for the individual of the Ukrainian market of pellets, but also for alternative energy in General. In Ukraine annually gathers more than 50 million tons of grain crops. The energy potential from plant waste and straw is estimated at 18 million tons in oil equivalent. The greatest resources are concentrated in Poltava, Dnipropetrovsk and Vinnytsia regions. But for projects they need investments, which, unfortunately, failed to attract. Processing waste wood is used more efficiently as fuel pellets and briquettes from wood are familiar to the population and there is a demand – about 70% of successfully processed.

The state is actively recruiting professionals for the industry. Not so long ago was presented the draft roadmap of renewable energy development of Ukraine for the period until 2020, which will help attract investment in renewable energy. New laws and reforms to make the sector more regulated and protected from corruption.

Active policy in early 2017 provides a good Foundation for Ukrainian pellet market, but high demand in Europe, will leave the priority of export for domestic producers.

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