Mass Media
The main reason of stagnation of the bioethanol trend in Ukraine is the absence of the sales market
13.10.2014
The production of bioethanol in Ukraine is in no haste to increase its development. The main reason of stagnation of the development of this trend is the absence of the sales market for Ukrainian bioethanol both in Ukraine and in the European countries. If other producers of alternative types of energy often find buyers outside Ukraine, then it is impossible to export bioethanol to Europe because of the high price of Ukrainian products compared to similar European ones..
"The net cost of bioethanol at the Ukrainian market is 475 Euros per m3, the price in Europe is up to 200 Euros per m3 of products", Oleg Korol, Commercial Director of Bioethanol Program of Techinservice LLC, said in his interview with Fuel Alternative. Such difference in price formation is primarily associated with high prices for electricity and raw materials at the Ukrainian market. The main types of raw materials for the production of bioethanol are corn, the price of which is 1,500 UAH per ton as well as molasses, the price of which is 1,200 UAH per ton. The price formation also depends on the fact that the equipment used at the enterprises which produce bioetahnol is outdated and there are no energy efficient technologies. The operation of a new plant, where the energy-saving technologies are being introduced, will allow reducing the cost of production. All of these factors together form the exorbitant price for bioethanol produced in Ukraine.
Today the main buyers of bioethanol are Ukrainian fuel companies and companies which own fuel stations.
The market of the bioethanol production in Ukraine will gain momentum in the case of the cumulative effect of several factors. First of all, high prices for gasoline and oil will lead to increased interest in the use of ethanol. The impetus for the development of bioethanol production in Ukraine may be the introduction of the state program aimed at the development of the production and use of bioethanol as an alternative fuel type. Every European country already has a similar Program. In Sweden, for example, free parking and other benefits are foreseen for vehicles which use alternative fuel.
"In September-October 2010, a new yield of agricultural products will form new prices for raw materials for the production of bioethanol. If the prices for raw materials will be lower than those that exist today, we can count on the competitiveness of ethanol within Ukraine. And, accordingly, we can count on its use as an alternative type of fuel," Oleg Korol from Fuel Alternative said.
