In 2024, Ukraine fully utilized its annual export quota for bioethanol supplies to the European Union for the first time. Last year’s export volume of bioethanol reached 99,300 tons, nearly equal to the established quota of 100,000 tons. Of this, 62% of the total exports were provided by private enterprises, with the three largest accounting for 38% of the supplies.
This is reported by Бізнес • Медіа
Market Structure and Key Growth Factors
Currently, there are 17 bioethanol plants operating in Ukraine, with a total production capacity of over 420,000 tons per year. In recent years, 12 of these enterprises have been privatized, which has been a significant boost for the industry. Bioethanol production is actively growing due to several factors:
- Replacement of Russian methanol with Ukrainian bioethanol in the oil and gas extraction industry.
- Organization of supplies to EU countries in large consolidated batches of no less than 10,000 tons.
- Logistics features: bioethanol is transported by tank trucks to oil refineries in the EU, while gasoline is delivered back to Ukraine.
- Cancellation of export quotas for bioethanol in the EU and mandatory addition of 5% bioethanol to gasoline on the domestic market of Ukraine.
“Last year, Ukraine effectively exhausted the annual quota of 100,000 tons for bioethanol supplies to the European Union for the first time since signing the association agreement with the EU.”
New Opportunities for Ukrainian Producers
According to updated trade conditions, from June until the end of the current year, Ukrainian bioethanol producers have been granted the opportunity to export an additional 58,000 tons of this product to the EU. This dynamic indicates an increase in Ukraine’s presence in the European bioethanol market and a strengthening of the private sector’s role in the structure of export supplies.