Bioethanol in gasoline will become a mandatory ingredient from June 2025

The Verkhovna Rada of Ukraine adopted the Law on the mandatory use of liquid biofuel (biocomponents) in the field of transport. The purpose of the document is to create a legal framework for the development of the sphere of production, circulation and use of liquid biofuel by transport. In particular, the implementation of the provisions of the Directive of the European Parliament and the Council of the European Union on encouraging the use of energy produced from renewable sources in terms of ensuring Ukraine's international obligations regarding the share of energy from renewable sources in the gross final volume of energy consumption in transport is envisaged.

From June 1, 2025, the law establishes a mandatory content of liquid biofuel (biocomponents) of at least 5% in all volumes of automobile gasoline sold from wholesale and retail fuel outlets. An exception is made for gasoline with an octane number of 98 and higher and gasoline supplied for the needs of the Ministry of Defense, the State Reserve and for the creation of minimum reserves of oil and oil products. At the same time, keeping track of the content of liquid biofuel in the fuel is entrusted to the State Energy Efficiency Agency of Ukraine.

Non-compliance with release requirements and untimely or failure to provide information on the content of liquid biofuel (biocomponents) in volumes released on the customs territory of Ukraine from the places of production and wholesale of motor gasoline fuels are classified as offenses by law.

Some are already starting to prepare for changes. For example, OKKO GROUP is starting to work on the concept of a large biodiesel plant. Vasyl Danylyak, CEO of the company, told about this in an interview with Forbes. In his opinion, the company has a rather big prospect for biodiesel and there are quite strict mandates in place in Europe. Therefore, some Eastern European countries will only join these mandates in 2025. In Romania, for example, the diesel mandate will start working next year, as well as in other countries.

Currently, the company has not decided where exactly the biodiesel plant will be located, but the resource that OKKO has is not enough to start construction. Currently, the annual production capacity of biomethane in Ukraine is 6 million m³ - 3 million m³ at the Hals Agro holding plant in the Chernihiv region and 3 million m³ at the Vitagro holding in the Khmelnytskyi region.

As previously reported, a biofuel exchange is being created in Ukraine, and for this the Government calls on business and farmers to increase the share of alternative fuels on the market. The memorandum on cooperation has already been signed by the State Agency for Energy Efficiency and Energy Saving and the Ukrainian Energy Exchange. Currently, the priority is to create a transparent and competitive biofuel market.

According to Kostyantyn Shevchuk, deputy general director of the Ukrainian Energy Exchange LLC, bioenergy is one of the strategic directions for replacing natural gas. However, for the development of the direction, it is necessary to create appropriate conditions on the market, which do not really exist today. Therefore, in his opinion, the transition to exchange trading will significantly affect the price dynamics in the biofuel market, and the trading will come out of the shadows.

"Today, Ukraine imports 1/3 of gas. This can be avoided thanks to alternative types of fuel, which will save a lot of money in the budget," says Hanna Zamazeyeva, head of the state agency for energy efficiency and energy saving.