By Jan. 1, 2014, the State Enterprise Ukrspirt will produce 150,000 tons of bio-ethanol annually, which will fully cover the need of the domestic Ukrainian market for bio fuels, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

Analyts say the total capacity of Ukrspirt plants for bio-ethanol is about 100,000 tons. Upgraded distilleries will add 50,000 tons annually (their reconstruction shall be completed by Jan. 1, 2014).

To date, Naumovsky (9,500 tons annually) and Ivashkovsky (7,200 tons annually) distilleries are ready to produce bio-ethanol, along with Horostkovskoye distillery and spirit store (47,400 tons), Gaysinsky distillery (10,600 tons annually), Luzhanskoye distillery and spirit store (8,200 tons annually), Barsky distillery (11,000 tons annually), and Chervonensky food plant (7.1 tons annually).

Experts say Ukrspirt has been actively investing in upgrading its facilities. In the near future, upgrade of Trilesky distillery (14,000 tons annually) will be completed. Reconstruction of other enterprises is ongoing.

It is important to note that Ukrspirt companies will be fully provided with raw materials. Moreover, technological characteristics of production at some plants let them work with two types of materials: molasses (a by-product of sugar beet processing) and grain.

According to Law No 4970-VI "Amendments to certain Laws of Ukraine on production of motor fuels including the bio components," in 2014-2015 any gasoline sold in Ukraine shall contain at least 5% of bio-ethanol. And since 2016, obligatory share of bio-ethanol in gasoline will be increased to 7%.

Experts say Ukrspirt can ensure production for 5% threshold of bio-ethanol in gasoline sold in Ukraine, and even up to 10%. With start of full-scale production, Ukraine will be able to export the domestic product to foreign markets.

Government analysts believe that introduction and production of bio-ethanol will reduce the country's dependence on imported oil and petroleum products, and is a stable global trend. Another important aspect for Ukraine is that the European Union has legally and strategically justified the use of ethanol in production of gasoline fuel.

Bio-ethanol was first used in the EU in 2003 after the adoption of Directive on Bio Fuels 2003/30/EC, which established the indicative targets for use of fuel and renewable energy sources in vehicles: 2005 – 2%, 2010 – 5.75%.

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