Ukraine has begun large-scale construction of bioethanol production facilities that will allow for the annual output of up to 1 million tons of this eco-friendly fuel. According to Taras Mykolaienko, director of the Ukrainian Association of Bioethanol Producers, bioethanol production is planned in nearly every second new industrial park currently being established across the country.
This is reported by Business • Media
Export Potential to the EU
The new enterprises will have the capacity to process up to 3 million tons of corn per year. At the same time, experts estimate that the annual demand for bioethanol in the European Union stands at 6 million tons. This opens up opportunities for Ukrainian producers to enter the EU markets with their products, especially in light of the growing demand for biofuels.
“Construction of 1 million tons of capacity has now begun, which will be able to process 3 million tons of corn. The expert clarified that currently the EU consumes 6 million tons of bioethanol per year, so Ukrainian products could definitely be exported to the European Union.”
Changes in Quotas and Legislation
As part of the new trade agreement with the EU, a quota for bioethanol exports from Ukraine was set at 100,000 tons. However, after negotiations, this quota was successfully increased to 125,000 tons, with plans for the industry to raise it to 300,000 tons by 2026.
Starting in July 2025, a draft law has been registered in the Verkhovna Rada of Ukraine that proposes the mandatory addition of more than 7% bioethanol to fuel starting in July 2026. In the future, the share of bioethanol in fuel is expected to reach 10%. Meanwhile, industry associations will develop additional mechanisms to protect the domestic market, drawing on European experience.