In 2024, Ukraine fully utilized its bioethanol export quota to the European Union for the first time since the beginning of its cooperation with the EU. According to the customs committee of the Verkhovna Rada, last year Ukrainian producers managed to export 99,300 tons of this product, coming close to the maximum allowed annual quota of 100,000 tons for supplies to the EU.
This is reported by Finway
Production Structure and Export Characteristics
Ukraine has 17 bioethanol production plants with a total capacity of over 420,000 tons per year. Among them, 12 enterprises were privatized in recent years, which has contributed to the revitalization of the industry. Private companies accounted for 62% of total bioethanol exports, with only three private plants covering 38% of supplies outside the country.
Several factors significantly contributed to the growth of exports:
- The refusal of Ukrainian oil and gas extraction companies to use Russian methanol in favor of domestic bioethanol,
- The organization of consolidated bioethanol shipments for export to the EU of no less than 10,000 tons,
- Logistical features: transporting bioethanol by tanker trucks to European refineries, followed by the return supply of gasoline to Ukraine,
- The cancellation of quotas on bioethanol exports to the EU and the implementation of a mandatory addition of 5% bioethanol to automotive gasoline in the domestic market.
New Trade Conditions and Industry Prospects
For the first time since the signing of the association agreement with the EU, Ukraine has nearly exhausted its annual quota for bioethanol supplies. At the same time, according to updated trade rules, from June until the end of the current year, Ukrainian producers have the opportunity to export an additional 58,000 tons of bioethanol to EU countries.
“Last year, Ukraine effectively exhausted the annual quota of 100,000 tons for bioethanol supplies to the EU for the first time since signing the association agreement with the EU.”
Thus, the gradual increase in production and export volumes of bioethanol creates conditions for further development of this industry and the expansion of the presence of Ukrainian producers in the European market.