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 30.11.2006
11:14

Ukraine: feedstock resources and biodiesel market development


Constant growth of prices for energy resources in the world makes people more and more often turn to alternative, renewable and environmentally safe sources of energy, one of which is biodiesel.

Technology of biodiesel production relatively simple: methyl alcohol is used to extract glycerin from rapeseed oil (glycerin is in demand for cosmetology and other branches). As a result, we receive methyl ether of rapeseed oil, which is fuel whose molecular structure is similar to that of diesel so that it can replace it. Biodiesel biologically is easily decomposable and does not pollute water. This means that there are no special requirements for transportation or storage.

At the same time, specialists point out to a considerable shortcoming of rapeseed methyl ether, which is its high cost. In Europe, it is 10-20% higher than the cost of ordinary diesel. Nevertheless, biodiesel is more and more widely used. To a great extent it can be explained by the policies implemented by European states that allocate subsidies for production of biodiesel. Furthermore, use of common diesel in some branches on the continent is prohibited.

One of the biodiesel’s environmental advantages is that its use decreases the smoke content in waste gases, solid carbon, carbon monoxide and СН by 23%. Small sulfur content (0.02%) in biodiesel enhances environmental characteristics of fuel whereas rotation of carbon dioxide СО2 (motor exhaust equal to the amount of СО2 consumed by a plant) allows us to considerably decrease a greenhouse effect.

Apart from the aforementioned advantages, bio-fuel technology can be integrated into the farming cycle providing energy for agricultural vehicles and equipment, supporting soil fertility (after the harvest of rapeseed, each ha contains approximately 65 kg of nitrogen, 34 kg phosphoric acid and 60 kg potassium) and serving as a forage base for cattle.

In Ukraine, the issue of biodiesel production using rapeseed is also considered. However, low rapeseed productivity in Ukraine is still the major impediment for manufacturing biodiesel for domestic consumption. Given the present price for biodiesel, fuel produced from rapeseed will be competitive only if rapeseed productivity is not les than 25 centners per 1 ha. Currently, it is 16 centners per 1 ha, and a manufacturing cost of 1 l of biodiesel in Ukraine is about 4-5 UAH.

One can speak at great length about advantages and prospects for biodiesel production demonstrating active development of this market in EU and the USA. Nonetheless, the question whether it is possible in Ukraine is still open. There is no doubt that, in view of the development trends all over the world, development of Ukrainian biodiesel market is merely a question of time.

Production of biodiesel and development of respective industry in the EU is supported at a governmental level, which makes us expect that, at least in the nearest future, demand for feedstock will be growing. Under such conditions, Ukraine has all the chances to become one of the main feedstock suppliers for biodiesel industries in the EU.

Today, industrial production of biodiesel in Ukraine is not developed and exists only at the artisan level. According to available information, the government is currently planning to construct 3-5 specialized plants that will produce biodiesel in Ukraine. However, there are some objective obstacles for development of Ukrainian market.

For more information, please, see:

http://www.proagro.com.ua/eng/art/4013067.html

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