The European Bank for Reconstruction and Development (EBRD), together with the Global Environment Facility (GEF), will finance a bioenergy development support program worth more than $ 50 million, said Lesya Kuzmenko, Associate Director, Deputy Head of the EBRD in Ukraine.
“The program is aimed at technologies and systems for the collection, storage and processing of agrobiomass, we expect to mobilize about 50 million dollars for its implementation,” she said at the official opening of the program “Ukraine: Sustainable Innovations in the Bioenergy Value Chain”.
Tatiana Markuta, Leading Engineer of the EBRD in Ukraine, clarified that the total amount of the program, designed for four years, will be $ 55.8 million, and it is planned to launch it from the fourth quarter of 2019. According to her, the Global Environment Facility provides grant support within the program.
Most of these funds - 50 million - will be used to finance bioenergy projects in the private sector, and another 3.5 million - on incentive grants, Markuta said. The rest of the funds are planned to be used for information support and educational projects in the field of bioenergy.
"We will look at the options for possible stimulation of bioenergy development within the framework of the program and select 2-3 areas that will be most beneficial for Ukraine," added the EBRD's lead engineer in Ukraine.
She noted that the support is designed for companies in the agro-industrial sector and logistics, companies that can handle waste, as well as those that produce and process biomass.
"In theory, any private company that somehow influences the development of the biomass production chain can become a beneficiary of this program," Markuta stressed.
According to Kuzmenko, in connection with the ratification of the Paris Agreement, Ukraine has set a very ambitious goal - by 2030 to reduce greenhouse gas emissions by 40%.
“This program will contribute to the achievement of this goal. Unfortunately, renewables account for only 3% of total primary energy production, ”she said.
At the same time, she said, the agricultural sector has a huge potential for agrobiomass, which can be used for energy production.
“According to our experts, no more than 5% of residues in the fields are used for processing and energy production. The program is aimed at accelerating the production of renewable energy and providing a financial instrument that will mobilize investments in this sector, ”said the EBRD manager in Ukraine.
The EBRD has invested over € 500 million in renewable energy projects since 2006, including € 120 million in bioenergy projects.
"Renewable energy is our priority," Kuzmenko stressed.