EIG Engineering: Ukraine needs a programme for attracting investments in bioenergy

According to the analytic centre of EIG Engineering, wood resources for bioenergy power plants in Ukraine amount to about 4 million tonnes annually. In terms of calorific value of coal, this resource is estimated at 1.9 million tonnes of reference fuel. Its processing does not require additional forest cutting, as it is all about the wastes of industrial and sanitary felling. Presently, this biofuel is constantly accumulated in the logging areas and is being burned aimlessly.

However, according to the legislation of Ukraine, forest cutting can be carried out exclusively by state forestry units. They do not perform inventory of wood wastes. As a result, potential investors into Ukrainian bioenergy do not have consolidated information on the availability of wood fuel in every forestry unit of Ukraine, as said in a press release of EIG Engineering. This complicates significantly the choice of construction sites for perspective bioenergy stations: in order to pay back a biofuel CHP project within 3-5 years, biomass shipment distance should not exceed 90 km.

In addition, in order to choose construction sites, potential investors need consolidated data on the demand for new energy capacities or upgrade/replacement of existing fossil-fuelled power plants up to 40 MW in different regions of Ukraine.

Similar pilot project has started in Russia (Krasnoyarsk region) in early September. The Federal Forestry Agency, Ministry for Natural Resources and Krasnoyarsk region authorities are working on collecting information about the resource base in the region in order to form a pool of proposals for attracting investors.

Presently, according to the analytic centre of EIG Engineering, seven bioenergy CHPs are at the stage of operation, construction or launch in Ukraine. They work on all types of solid biofuel, including wood chips. Their total capacity is around 35-36 MW.

The management company EIG Engineering was founded in 2006 and specializes in the implementation of investment projects in the field of alternative energy.