On April 19, 2012 the Ministry of Energy and Coal Industry of Ukraine has published on its website draft law "On Amendments to Certain Laws of Ukraine regarding Production and Use of Motor Fuels Containing Biocomponents". Pursuant to the draft law staged increase of the standard share in the production and use of biofuel and mixed motor fuel, including portion of bioethanol in motor fuels produced and/or sold in Ukraine, will amount to:
- in 2013 – recommended content at least 5%;
- in 2014-2015 – obligatory content at least 5%;
- as of 2016 – obligatory content at least 7%. Unfortunately, the draft law does not stipulate an obligatory content of biodiesel in diesel fuel.
Mixed motor fuels production and adding (mixing) of bioethanol and/or bio-components on its basis to hydrocarbons (petrol, fractions, components) will be performed by companies list of which shall be determined by the Cabinet of Ministers of Ukraine (there are no indications in the draft law that these will be state companies only).
This is a positive novelty from the point of view of harmonization of Ukrainian standards with EU regulations. Thus, Renewable Energy Directive 2009/28/ЕC stipulates 10% of renewable energy for transport industry and 20% of renewable energy in the general energy consumption structure till 2020 as obligatory standard.
Authors of the draft law consider that anchoring possibility of wide use of biofuel by oil refining and other companies for production of mixed fuels in accordance with obligatory standards is currently the priority, the only possible and reasonable direction of state support for the biofuel market expansion. They also expect that it reduces Ukraine's dependency on imported fuel
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
