Business news from Ukraine

Ukraine’s Minister of Agrarian Policy asked USAID to support biogas production projects

The issue of the need to support the processing industry, in particular biogas producers, was raised by Minister of Agrarian Policy and Food of Ukraine Mykola Solskiy at a meeting with Deputy Director of the USAID mission in Ukraine Theodora Dell, the press service of the Ministry of Agrarian Policy reported.

“The parties discussed the implementation of joint projects in the agricultural sector of Ukraine. The Minister thanked for the support of land reclamation reform, as a result of which farmers are actively creating new OICs, receive assistance in the restoration of irrigation systems. They also talked about the need for additional projects to support the processing industry, in particular biogas producers,” the report says.

According to Solsky, this promising industry should receive an additional impetus to more active development.
Dell, for her part, noted that the USAID mission has been supporting Ukraine since the first days of Russia’s full-scale invasion and will definitely continue to do so.


Lvivvodokanal has signed an agreement with the Slovenian-Norwegian consortium Riko-Cambi on the construction of a biogas station with combined heat and power production for EUR 31.5 million.
“Based on the results of the international selection procedure for the implementation of the project for biogas production from municipal sewage sludge, the Slovenian-Norwegian consortium Riko-Cambi was appointed as the contractor. The contract will last until June 2023,” the press service of Lviv City Council said.
According to the work schedule, design and estimate documentation will be developed by September-2021, construction, installation and commissioning by June 2022, the commissioning of the facility by June 2023.
The station will generate electricity in the amount of about 20,000 MW/year and heat.
“It will improve quality of life for many, cutting CO2 emissions by 120,000 tonnes/year. A good example of EU Green Deal at work!” Matti Maasikas, the Head of the EU Delegation to Ukraine, said on Facebook.
The project is financed by a loan of the European Bank for Reconstruction and Development (EBRD) in the amount of EUR 15 million and the Nordic Environment Finance Corporation (NEFCO) in the amount of EUR 5 million, a grant from the Eastern Europe Energy Efficiency and Environment Partnership(E5P, EUR 7.5 million) and Lviv City Council (EUR 4 million).

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Myronivsky Hliboproduct (MHP), one of the largest agricultural holdings in Ukraine, is working on a carbon dioxide plant project, deputy chairman of the board Oleksandr Dombrovsky has said when signing a memorandum of partnership between the agricultural holding and Organic Ukraine.
“This is an innovative project, I can’t tell you much. We are now doing a very professional feasibility study, considering various options. Today it is too early to say that we are ready for this project. We are working on it,” he said.
Dombrovsky clarified that the plant is being designed both for the needs of MHP itself, and for the domestic market and export. According to him, today about 70% of carbonic acid in the domestic market is imported, mainly from Poland and Hungary.
He also said that MHP, which has already built two of the world’s largest biogas complexes for processing poultry manure, has another ready-made similar project and a permit for its construction.
“But we are thinking to start or not to start. And if to start, then when, given that the “green” industry in Ukraine has not been paid money at all for six months,” Dombrovsky explained.
He stressed that investments in biogas are significantly higher than in solar energy, and range from EUR3 million to EUR3.5 million per 1 MWh of capacity.
The expert noted that the agricultural holding is also working on other innovative projects, in particular, on “green” hydrogen.

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Persey Energo LLC intends to build a biogas plant with an electrical capacity of 12 MW at Persey Agro farm (Ivano-Frankivsk region).
This is evidenced by the report about the planned activities in the unified register of environmental impact assessment, posted on the website of the Ministry of Ecology and Natural Resources.
It is planned that the plant will recycle organic waste from agriculture and animal breeding. It is assumed that the plant will generate 12 million kWh of electricity and 7.288 million kWh of heat per year.
According to the state register of legal entities, at the end of March the founders of Persey Energo LLC, registered in 2018, were five individuals and Alliance-Invest IF LLC. Persey Agro belongs to Volodymyr Slobodian.

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The European Bank for Reconstruction and Development (EBRD) has issued a $5 million loan to Dniprovska agro-industrial group of companies, one of the largest producers of poultry goods in Ukraine, for building a biogas plant. According to information on the bank’s website, the biogas plant will use chicken manure from farms. It is expected that the plant will help optimize energy supply and reduce operating costs.
The total cost of the project is estimated at $5.85 million.
Dniprovska agro-industrial group of companies deals with poultry farming, plant growing and industrial crops processing. The group includes Dniprovsky poultry farm (Dnipropetrovsk region), Zaporizhia poultry farm LLC, Agroproinvest-08 LLC (both based in Zaporizhia region) and other enterprises.
The group manufactures products under the trademarks Dniprovski Kurchata and Znatna Kurka. It delivers products to the markets of the Middle East, Asia, Africa and Oceania under the Ulas and Katkut brand.
The group cultivates more than 15,000 hectares of leased land in Zaporizhia and Dnipropetrovsk regions. The main crops are grains, legumes and oilseeds. It also produces sunflower and soybean oil, sunflower and soy meal.