Mandatory use of at least 5% biofuel in motor gasoline will bring more than $1 bln to budget annually - MHP Eco Energy president
The adoption of the bill on the mandatory use of bioethanol in liquid motor fuels is an extremely important event for Ukraine, since its implementation will annually ensure the receipt of more than $1 billion in the budget and significantly influence the development of the agricultural sector, says the Chairman of the Board of Global 100 RE Ukraine, President of MHP Eco Energy Oleksandr Dombrovsky.
“This is a significant event, the cost of which, according to my calculations, is more than $1 billion a year for the Ukrainian budget. We will be able to process the corn that we don’t know at what price to export and sell for bioethanol, and add it to gasoline. Thus, the burden on imported energy resources and the use of oil will be reduced. We can create a new serious technological base and jobs in the agricultural sector, which we need to develop,” he said at a press conference on the development of distributed generation in Ukraine at the Interfax-Ukraine agency.
As Dombrovsky noted, the historical value of the bill lies in the fact that it is already more than 20 years old, but the oil lobby, primarily Russian, did not allow it to be passed for a long time (in parliament).
However, he added that this bill is also important for the development of renewable energy in general.
As reported, on June 4, the Verkhovna Rada, with 235 votes, adopted in the second reading and in general bill No. 3356-d on the mandatory use of liquid biofuels (biocomponents) in the transport industry from May 1, 2025.
The bill was adopted in its first reading back in June 2021. It was then assumed that it would come into effect in May 2022.
The document establishes at least 5% of the mandatory content of biocomponents in all volumes of motor gasoline sold from wholesale and retail outlets. The exception is gasoline with an octane rating of 98 and higher, as well as those supplied for the needs of the Ministry of Defense, the State Reserve and for creating minimal reserves of oil and petroleum products.
Keeping records of the content of biocomponents in fuel is the responsibility of the State Agency on Energy Efficiency and Energy Saving.
