The German authorities intend to support bilateral energy projects with Ukraine and will dedicate the funding of $70 million for this, according to a joint statement by Washington and Berlin on the Nord Stream 2.
“Germany will continue to support bilateral energy projects with Ukraine, especially in the field of renewables and energy efficiency, as well as coal transition support,” the document says.
Germany, among other things, “will appoint a special envoy with dedicated funding of $70 million.”
In addition, Germany is also ready to launch a Ukraine Resilience Package to support Ukraine’s energy security. Berlin will provide assistance for Ukraine’s integration into the European electricity grid, support efforts to reform Ukraine’s energy sector, and assist with identifying options to modernize Ukraine’s gas transmission systems.
The Dutch company Bontrup plans at the first stage to invest EUR 50 million in energy projects in the Chornobyl exclusion zone as part of the implementation of the concept of Ukraine’s “green” energy transition, the Economy Ministry reported.
According to the report, Bontrup representatives discussed this proposal during a meeting with First Deputy Prime Minister-Minister of Economy Oleksiy Liubchenko, Deputy Minister Iryna Novikova, as well as with Acting Head of the State Agency on Energy Efficiency and Energy Saving Kostiantyn Hura and Head of the State Agency on Exclusion Zone Management Serhiy Kostiuk.
“The parties discussed the proposal of the Bontrup representatives on the implementation of an investment energy project on the territory of the Chornobyl exclusion zone as part of the implementation of the concept of a “green” energy transition in Ukraine,” the ministry said.
Bontrup also estimates the prospect of increasing the volume of investments at EUR 1.5 billion. According to the initiators, the implementation of the project will provide jobs for about 10,000 households, the ministry said.
Kernel, one of the largest Ukrainian agricultural groups, will channel $170 million in the implementation of alternative energy projects.
The agricultural group said on its Facebook page on Friday that a green energy turbine with a capacity of 7.5 MW operates to its full capacity at the oil crushing plant in Kropyvnytsky.
“Six more Kernel’s plants operate in the same format until 2021 and generating a total of 90 MW. In particular, Starokostianstyniv oil crushing plant, which is being constructed in Khmelnytsky region, will become the largest modern oil crushing plant in Ukraine,” Kernel said.
According to the group, Starokostianstyniv oil crushing plant will have a turbine with a capacity of up to 20 MW.
VR Capital Group (the United States), an alternative asset manager specializing in global emerging markets, has acquired the remaining stake in alternative energy projects jointly developed with ICU independent asset management, ICU reported on its website.
According to the report, deal covers green energy facilities in Kamyanets-Podilska solar plant (64 MW) in Khmelnytsky region, Solar Capital energy company (35 MW) in Kherson region and a number of small stations in Mykolaiv region (with a total capacity of 127 MW).
Terms of the transaction were not disclosed.
The ICU only said the transaction has been approved by the Antimonopoly Committee of Ukraine on July 4, 2019.
“I am still confident that these assets are in good hands and that the key alternative energy sector in Ukraine is positioned to attract further large foreign investments. We see a great potential in our economy and we continue our work with international investors,” said ICU managing partner Makar Paseniuk.
He said that VR Capital has been a visionary among western investors in understanding the enormous potential of Ukraine and being ready to support the country even during difficult times.
VR Capital Group Ltd., through its principal subsidiaries including VR Advisory Services Ltd (together, VR Capital Group) is an alternative asset manager with assets under management in excess of $4.5 billion. VR Capital Group’s external client base is primarily composed of institutional investors from the United States and Western Europe, including university endowments, charitable foundations, family offices and institutional asset allocators.
Founded in 2006, ICU is Ukraine’s leading asset manager with over $500 million in assets under management. Managing Partners Makar Paseniuk and Konstantin Stetsenko are majority shareholders of ICU.
The European Bank for Reconstruction and Development (EBRD) is preparing the new Ukraine Sustainable Energy Lending Facility (USELF-III) for the amount of EUR 250 million, the bank has reported on its website. “Therefore, to continue supporting the Ukrainian renewable energy sector, the EBRD, intends to commit an envelope of EUR 250 million from its own resources to finance new private renewable energy projects in Ukraine,” the bank said.
EBRD launched USELF in 2009 to support and finance the first non-large hydropower renewable energy projects in Ukraine. The original Ukraine Sustainable Energy Lending Facility (USELF) is set to expire on June 30, 2018. Since inception, the facility has invested more than EUR 100 million to finance over 150 MW across all renewable energy technologies.