What is happening in Russian biofuel industry?

At the recent conference on bioenergy in Moscow the participants from Russia and European countries were discussing a number of important issues.

The agenda was viability and profitability of production of bioproducts. The interest was unfolding in the initiative of small and medium-sized businesses, in the amount of investment and number of large enterprises in the market of alternative energy.

All participants agreed that the active role of alternative energy gradually fades away. Thus, over the past 10 years the number of alternative investments in the economy has increased by almost 20 times. However, the expectations of investors are likely to be only partially met.

One of the largest factories for the production of biomass is located in a small village of the Leningrad Region. Many businesses either close or launch another activity. Why is this happening? Experts note that there are several reasons: illogic business plans, too high price for the products, technical problems, etc.

Many people wonder about the future of the market of pellets, briquettes and biogas. The specialists say that by 2020 the market for alternative fuels will increase by 30 million tons, compared with 15 million tons in 2010. The most profitable business is the production of wood pellets and briquettes. Cheap raw materials, demand for it inside the country and abroad makes production of these biofuel popular. The reconstruction of the existing heating systems for the use of biofuel is also needed.