Home
/ Biodiesel
/ News
Agriculture Ministry Submits Biodiesel Production Development Program For 2006-2010 To Cabinet
Copyright 2006. Ukrainian News Agency, Inc.,
(Ukrainian News, Viktoria Miroshnychenko, 05/29/2006) The Ministry of Agricultural Policy has submitted a program on development of biodiesel production for 2006-2010 to the Cabinet of Ministers for approval.
Ukrainian News learned this from a corresponding draft resolution of the Cabinet authorized by the ministry and posted on its official website.
The program is aimed at increasing the level of ecological and energy security in the country, provision of the agricultural sector with Ukrainian biofuel, implementation of international commitments in the area of environmental protection, and meeting European environmental standards.
In the program the ministry suggests establishing separate indicative plans for biofuel producers that would help to increase their production, ordering fuel-trading outlets to maintain their reserves of biofuel or ordinary fuel with biological additives at an adequate level, and introducing incentives for those who use biodiesel to power agricultural machinery and transport.
The ministry believes the program will help create zones of concentrated rapeseeds production with the use of latest technologies on the area of 50,000 to 70,000 hectares, ensure guaranteed sale of rapeseeds, create a system of government standards in the area of production and use of alternative types of fuel, and create conditions for construction of biodiesel factories.
Pursuant to the program, the area of rapeseed fields will expand to 10% of total farmlands in Ukraine before the year 2010, as a result of which rapeseed harvest may total 5.4 million. To this effect, three biofuel plants need to be constructed before 2008 and at least 20 with a total capacity of 623,000 tons before 2010.
One region of the country would spend around EUR 170 million on construction of a biofuel plant capable of making 100,000 tons per year, elevators with a combined capacity of 350,000 tons, and agricultural technical complexes for rapeseed production on the area of 100,000 hectares.
Under the program, the size of government per-heater subsidy must be increased from UAH 65 in 2006 to UAH 100 in 2007-2010, and total financing of the program should amount to UAH 12.1 billion, including UAH 1,04 billion taken from the state budget.
As Ukrainian News earlier reported, the Cabinet of Ministers approved the concept of the state program that targets development of diesel biofuel production during the period until 2011 period.
The Agricultural Policy Ministry intends to initiate introduction of incentives for cultivation of rapeseed and production and use of biodiesel.
The ministry forecasts rapeseed harvest of 700,000-750,000 tons for 2006.
Ukrainian farmers sowed 234,000 hectares of rapeseeds in 2005.
Date: 29.05.2006
Leave your comment
