Straw pellets: this market will get the new stimulus
We may say without exaggeration that today straw is a strategic resource for Ukraine. Ukrainian agricultural state on average produces 50 million tons of straw per year, the third of this amount could be processed into solid biofuels. For the reference: 1 ton of straw waste is the equivalent of 500 cubic meters of gas, 700 kg of coal or 330 kg of diesel. However, for the time being tons of straw which could replace about three billion cubic meters of gas rot in the domestic fields annually.
Still, Russian Gazprom’s intransigence rather seriously stimulates the Ukrainian government to develop alternative energy. Domestic boiler houses are gradually converted to solid biofuels. The objects working on pellets and briquettes are mounted in various locations. First of all, they are designed for heating homes and social facilities. Experts affirm that agricultural enterprises could arrange the production of solid biofuels by themselves and eventually get a good profit. Such business would be more than reasonable as raw material is always at hand, moreover, already existing lines for producing feed stuff could serve as the equipment.
However, farmers still prefer to observe the development of this market from the sidelines. They sell their straw at about 50 UAH per ton, allowing other companies to collect it from their lands and process into biofuel. As a result, this resource is used by not more than 50%.
However, the domestic market of straw pellets and briquettes though slowly but grows. The infrastructure develops, new manufacturers and suppliers appear annually. State authorities being aware of the benefits and perspective of straw fuel decided to stimulate the transition to this efficient and environmentally friendly energy source. In 2011 State Agency on Energy Efficiency and Energy Saving of Ukraine allocated 42 million UAH for the projects connected with transferring boilers to solid fuels in order to heat hospitals, schools, kindergartens and other social facilities properly. In Odessa, for example, the equipment for burning solid fuel was installed in 20 budgetary institutions. Typically, these are 1 MW boilers working on wood and straw pellets.
In 2012, 502 million UAH were included in the state budget for implementation of the state program on energy efficiency and the development of energy production from renewable sources and alternative fuels. Most of the allocated funds will be used to transfer the old municipal boiler houses and social facilities to solid biofuels. Also in Ukraine the increase of energy efficiency is planned at the expense of 325 million UAH allocated by the European Union as a targeted financial support.
