Main points
- Ukraine can reduce its dependence on energy imports by growing rapeseed for biodiesel production.
- Despite the great potential, domestic biodiesel production is limited, while most rapeseed is exported to the EU for processing.
Rapeseed fuel / Photo Shutterstock
Ukraine has the potential to partially self-sufficient in fuel through rapeseed cultivation. However, despite significant acreage and exports, domestic biodiesel production remains limited.
Rapeseed as a fuel source: what is Ukraine's potential?
Ukraine is able to cover a significant part of its fuel needs through its own agricultural sector, Kommersant Ukrainsky reports. This primarily concerns the production of biodiesel from rapeseed, which is already grown in large quantities.
This was stated by Oleksandr Zakharchuk, a representative of the Institute of Agrarian Economics. According to him, one hectare of rapeseed can produce more than one ton of biofuel.
Given that the sown area of this crop in Ukraine exceeds one million hectares, the production potential is significant. For comparison, the annual demand of the agricultural sector for diesel fuel is about 0.9–1.0 million tons.
Europe processes, while Ukraine only exports
Currently, Ukraine remains one of the key suppliers of rapeseed to the European Union market. At the same time, the main added value is formed abroad.
In the EU countries, biodiesel is an important component of the energy sector, and rapeseed oil is the main raw material for its production. Its share in the structure of liquid biofuels reaches 70–80%. Among the leaders in the production of such fuel is Germany, where imported Ukrainian raw materials are actively processed.
In Ukraine, this direction is only developing. According to the expert, there are some small and medium-sized enterprises that produce biodiesel from rapeseed oil, but their capacity is limited to several dozen tons per day. Therefore, despite the significant raw material potential, large-scale production of fuel within the country has not yet been established.
Biofuel boom boosts rapeseed: prices remain quite high
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Global demand for rapeseed has increased due to interest in biofuels, but trade volumes remain moderate due to seasonal factors and market uncertainty.
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Rapeseed prices in Ukraine remain consistently high, but uncertainty in the US is holding back global demand for vegetable oils.