Heat from biofuel: how to prevent the decline of the industry

How not to lose the opportunities of Ukrainian bioenergy and to multiply biomass boilers and bio-CHP throughout the country, writes the head of the State Agency for Energy Efficiency and Energy Saving (Derzhenergoefficacy) Hanna Zamazeyeva for epravda.com.ua.

Illustrative photo

The start of another heating season is coming very soon. According to experts' forecasts, it will be no less difficult than last year's.

No country in the world experienced such devastating energy terror as Ukraine during the previous heating period due to constant, almost daily Russian missile attacks on energy infrastructure.

Russia wanted to use energy and cold as a weapon. To leave us and our children without heat and light, the economy without a source of energy. But last winter we persevered and persevered at the cost of the incredible efforts of Ukrainian energy workers.

And while Russia continues its terror, Ukraine does not stop, but takes strategic steps to repulse the enemy's aggression and intensively prepares for winter.

Ukrainian bioenergy can be a real Klondike of unused opportunities and solutions to protect the country and communities from energy terror.

Heat from biomass — energy independence of communities

In today's conditions of terrorist attacks, it is critical for Russia to move in the direction of decentralization of energy generation and diversification of energy sources.

Switching to alternative types of fuel will reduce the vulnerability of the energy system during Russian attacks. After all, damage to the gas infrastructure can immediately deprive a considerable number of consumers of heat (in some cases, a part of the city or more), and the use of boiler houses and local resources reduces such risks.

Biomass boiler houses (chips, agricultural waste, etc.) are one of those effective solutions that will provide heat to both the population and social and critical infrastructure facilities. Seamless, 24/7, reducing dependence on gas supply.

Replacing gas and saving budget funds is real

In various parts of Ukraine, many communities are gradually implementing gas substitution projects, installing biomass boilers for heating, for example, budget institutions.

Alternative fuels are cheaper than gas. Accordingly, it is possible to save considerable sums of money on purchases of blue fuel. As practice shows, cost savings can reach 30-60%. This is evidenced by the data provided by the manufacturers.

At the average annual market price of natural gas per month in 2022 — 37,8 thousand UAH / 1 thousand m3, the cost of the fuel component in the production of 1 Gcal of thermal energy from gas was ≈ 4800 UAH, and 1 Gcal from wood chips ≈ 2000 UAH ( the data are approximate, based on the moisture content of the cod and the calorific value of the gas).

Stimulus for economic recovery and development in the regions

In addition to the immediate possibility of replacing gas, the implementation of energy generation projects from biomass is a revitalization of the region's economy, new investments, new jobs, and additional revenues to the budget.

Funds that were previously spent on the purchase of expensive gas will be able to fill local budgets and revive the development of small and medium-sized businesses. Markets for production and consumption of local types of fuel will be formed, new jobs will appear.

Thus, despite the challenges and difficulties of the war, in 2022, more than 330 projects for the production of thermal energy from alternative types of fuel with a total capacity of 235 MW were implemented in the country. This is about 47 million euros of investments in the economy.

Still unused potential of Ukrainian bioenergy

To produce heat from biomass, there are more than enough resources. Ukraine has a powerful and developed agro-industrial sector. There is also plenty of forestry waste. Projects on the cultivation of energy plants are gradually developing.

Experts' calculations testify to the colossal potential of Ukrainian bioenergy. According to the Bioenergy Association of Ukraine, the total potential of gas substitution thanks to bioenergy can reach more than 30 billion m3 per year.

About 9,3 billion m3 of natural gas per year can be replaced only through the use of agricultural crop waste (which is a third of the country's gas needs).

And although the data are very optimistic, the main thing they say is that, unfortunately, today we do not use the full potential of using waste to generate energy, have high-quality services for the supply of hot water and heat, especially in public institutions, and ultimately - Finally, not to spend money on the purchase of gas and reduce the risks of interruptions in energy supply due to Russian attacks.

Supporting bioenergy is an investment in our energy security. Today, tomorrow, always

The State Energy Efficiency Agency, together with other authorities, specialized associations, market participants and the expert environment, is constantly working to eliminate obstacles to the development of Ukrainian bioenergy. And at the same time, we take into account the requirements and practice of the EU.

The Agency has initiatives to introduce an exchange for transparent and competitive biofuel trade, release biofuel producers from paying an environmental tax for carbon dioxide (CO2) emissions, stimulate the cultivation of energy plants, and others.

Among the main and extremely relevant developments of the Agency is the introduction of amendments to Article 20 of the Law of Ukraine "On Heat Supply", which are supposed to enable producers of thermal energy from alternative energy sources to receive a tariff on general principles and work according to economically justified tariffs.

This draft law plans to improve the mechanism for calculating and setting tariffs for thermal energy produced using alternative energy sources.

Adoption of the draft law will contribute to ensuring transparency during the calculation and setting of tariffs for thermal energy from alternative energy sources, for the production of thermal energy from alternative energy sources, and will also provide an opportunity to protect such enterprises from setting them an economically unreasonable tariff.

The draft law has already been agreed with the interested central executive bodies and submitted to the Ministry of Infrastructure for further consideration by the Government.

Actual problematic issues faced by producers of heat from alternative types of fuel were also raised at a meeting in the Ministry of Reconstruction, which was held under the chairmanship of the Vice-Prime Minister for Reconstruction of Ukraine Oleksandr Kubrakov, with the participation of Deputy Minister Oleksandr Butenko, People's Deputies Oleksiy Kucherenko and Victoria Hryb, as well as participants in the heat production market from alternative fuels.

Within the framework of the created working group, we are working out in detail the provided proposals for the development of Ukrainian bioenergy. Among the mandatory planned steps is not only the legislative settlement of problematic issues, but also the development of cooperation with local authorities.

Our energy independence is in our hands

In such difficult times of energy terror from Russia, it is important to use all possible ways to provide heat and electricity to every Ukrainian family, community, and enterprise.

Therefore, we must quickly remove all obstacles on Ukraine's thorny path to energy independence. The adoption of effective decisions at the state level will allow scaling and multiplying projects to install biomass boilers and bio-CHP in communities, attract new investments, and also gain and spread the unique experience of Ukrainian energy producers from biomass in the energy supply of critical infrastructure objects during the confrontation with Russian energy terror .

Read also on Newsky "Gryhoriy Mesezhnikov: The West perceives Ukraine as part of itself" and look at "Boring Pence" YouTube channels.

To always be aware of events, subscribe to TG channel Newsky. We also recommend current discussions of friends of Ukraine in North America on Rashkin Report YouTube channels.