Seminar of Sustainable Agribusiness Forum (SAF Ukraine) for business leaders in the agricultural sector. April 26, 2018 Details: https://saf.org.ua/en/

1. Biofuels e-trading system
introduction in Ukraine
Georgiy Geletukha, PhD
Head of the Board, Bioenergy Association of Ukraine (UABio)

2. Problems of the Biofuels Market of Ukraine
 Absence of the mechanisms for
biofuels trading and for
contractors searching.
 Necessity to balance supply and
demand.
 Unreliability of biofuels supply.
 Instable prices for biofuels.
 No requirements for biofuels
quality (standards).
 The lack of a market benchmark
for biofuel prices.
 Complexity of the projects
payback assessment, both by
the developer and by the credit
institutions.
creation of a market mechanism for biofuels
trading (electronic trading system - ETS).
obligation for certain enterprises to trade
via ETS;
ensuring performance of obligations in ETS;
price lining due to the competition in the
ETS;
biofuels trading in the ETS on the basis of
quality classes;
reducing of the risks of bioenergy projects.

3. Baltpool Biomass Exchange
Biomass purchased in Baltpool Biomass Exchange
 The main objective is to promote competition in the biomass market.
 Trading is carried out through the e-commerce system (from October 2012).
 National Commission for Energy Control and Prices issues a license for operator of the Exchange.
 Regulated energy companies are obliged to buy solid biomass via Baltpool.
1%
15%
64%
86% 95%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
50
100
150
200
250
300
350
400
2013 2014 2015 2016 2017
Biomass purchased in Baltpool, t. toe. Biomass purchased out of Baltpool, t. toe.
БМ на Baltpool, %
Thousand toe Share of biomass Exchange, %

4. Specific aspects of the biofuels ETS creation in Ukraine (1)
Biofuels electronic
trading system
Operator
State Agency of Energy
Efficiency and Energy
Saving of Ukraine
- ensures the operation
of the SET;
- does not have the
right to procure,
produce, transport,
supply and trade in
biofuels and/or
energy produced
using biofuels.
- approval prices for
operator's services;
- imposing
administrative fines
on the operator and
participants of the
ETS in case of
violation of their
obligations.
Threshold prices for the
operator's services are
based on the
methodology.
All types of biofuel are
traded
Biofuels must meet
quality standards
Antimonopoly Committee
of Ukraine
Competition Law
Controlling

5. Specific aspects of the biofuels ETS creation in Ukraine (2)
ETS operator is selected by the State Agency of Energy Efficiency
and Energy Saving of Ukraine on the basis of the tender.
Tender is carried out according to the specified criteria:
• fitting out with technical means, means of communication,
and software necessary for electronic trading;
• trading experience with biofuels or other energy sources;
• price of the operator's services and others.

6. Specific aspects of the biofuels ETS creation in Ukraine (3)
An annual increase of the mandatory
percentage for trading via ETS is
proposed.
Enterprises annually report to the
SAEE on compliance with mandatory
percentages.
Obligatory trading via ETS for:
Sellers of biofuels Buyers of biofuels
 state and municipal
enterprises that produce
biofuels;
 state and municipal enterprises that
procure biofuels;
 business entities with «green» tariff
granted;
 business entities that received a
stimulating tariff for heat energy from
RES in accordance with the Law of
Ukraine "On Heat Supply".

7. Increase of the biofuels trading share via ETS
0 0 0
20
40
60
80
100 100 100 100
0
20
40
60
80
100
120
2016 2017 2018 2019 2020 2021 2022 2023 2025 2030 2035
ShareofbiofuelsviaETS,%

8. 8
An example of
a biofuel
quality
certificate

9. Road map for biofuel market introduction in Ukraine
Analysis of examples of
solid biomass trading
in Europe
July - August
2017
The analysis of
barriers in Ukrainian
legislation that
hampered the
development of the
biofuel market
August –
September 2017
Development of
package of primary
legislation
organizing solid
biofuels market
September -
November 2017
Support and legal
advocacy of the
legislative package
among state
authorities and
public
November 2017
– January 2018
Registration the draft
law in theVerkhovna
Rada
June 2018
Adoption of the
draft law at first
reading
September 2018
Adoption of the
Law
November 2018
Adoption of
regulations,
competitive
selection of ETS
operator
December 2018
March 2019 – start of the operation of electronic trading system
for biofuels in Ukraine.

10. Estimation of the annual turnover of the ETS in Ukraine
0 0 0
1400
2924
4573
6551
8556 9150 9744 10111
0 0 0
60
480
1261
2642
4354
5675
9369
15795
0 0 0
181
405
640
917
1307
1440
1536
1584
0 0 0
6
47
87
233
378
786
2037
3492
0
5000
10000
15000
20000
25000
30000
35000
2015 2016 2017 2018 2019 2020 2021 2022 2025 2030 2035
Exchangeturnover,millionUAH
Деревна біомаса Солома, стебла Лушпиння соняшника Енергетичні культуриWood biomass Straw, stalks Sunflower husk Energy crops
0 0 0
1462
3049
4913
6844
8771 9150 9744 10111
0 0 0
841
1982
3483
4865
5675
9369
15795
0 0 0
427
688
1045
1333
1440
1536
1584
0 0 0
175
303
524
786
2037
3492
0
5000
10000
15000
20000
25000
30000
35000
2016 2017 2018 2019 2020 2021 2022 2023 2025 2030 2035
ETSturnover,millionUAH
Деревна біомаса Солома, стебла Лушпиння соняшника Енергетичні культуриWood biomass Straw, stalks Sunflower husk Energy crops
Type of biomass 2016 2017 2018 2019 2020 2021 2022 2023 2025 2030 2035
Wood biomass 0 0 0 1462 3049 4913 6844 8771 9150 9744 10111
Straw, stalks 0 0 0 240 841 1982 3483 4865 5675 9369 15795
Sunflower husk 0 0 0 203 427 688 1045 1333 1440 1536 1584
Energy crops 0 0 0 23 58 175 303 524 786 2037 3492
Total, Mtoe 0 0 0 1928 4375 7757 11676 15492 17051 22686 30982

11. Geletukha G.
Tel.: 044 332 9140
E-mail: geletukha@uabio.org
www.uabio.org
Thank you!