Biofuels – rescue way or trap for Ukraine’s economy?

“Biofuels” – the very name contains the principle of obtaining this type of product.

Bioethanol is obtained as a result of the processing of sugar-containing and starch-containing plants (sugar cane, sugar beets, corn, wheat, rye, potatoes, girasol, etc.) into alcohols. Also, for the production of bioethanol, such waste industries as sawdust, branches, chips, etc. (woodworking) and straw, husks, corn stems, stems (agricultural production) can be used. However, in most cases, grain or sugar from sugarcane or beets are used for processing, since this is the most easily processed raw material with a long-developed technology.

The yield of ethanol from 1 ton of wheat is 375 liters, corn – 410 liters, rye – 357, barley – 330, sugar beets – 104 liters. Biodiesel is methyl or ethyl ether obtained from vegetable and animal fats. The starting plant material is plants with a high content of oils, for example, sunflower, rapeseed. From 1 ton of oil crops (rape, sunflower) it is possible to obtain 350-430 kg of, or from 1 ha of, 770-1000 kg of, depending on the crop, yield and oil content.

The idea of   producing biofuels for cars has been developed and applied since 2000 against the background of a significant increase in prices for traditional fossil fuels in the form of oil and gas. At the same time, the method of hydraulic fracturing for shale gas production began to develop strongly enough. Despite environmental experts’ criticism and the increase in the risk of earthquakes and pollution of the aquifer, when applying this method, the United States actively introduced it on its territory. Ukraine, which has been experiencing significant problems in the fuel market since 2014, happily grasped this idea, but then talk of shale gas subsided somewhat because of a number of reasons: too high production costs, a significant drop in energy prices, active resistance by environmental activists, their citizens and the governments of neighboring countries. Biofuel production has fewer objections and criticism.

It would seem that two countries with a representative example of the introduction and use of biofuels and a growing energy market. Taking into account global climate change and the Glasgow climate summit in November 2021, at which states agreed to achieve “carbon neutrality” by the middle of the 21st century, the use of ecofuels received additional approval from governments and environmental groups. However, when using biofuels, there are not only positive, but also negative aspects.

Due to the European Union‘s growing demand for biofuel, more specifically Germany’s, neighboring countries with extensive land resources showed interest in this direction of production. After radical changes in its political agenda, Ukraine was considering to develop its own alternative energy complex, which, from Kiev’s point of view, will support the agriculture sector, ensure  country’s energy independence, and help to actively participate in the European market economy.

Ukraine’s extensive cultivation area (32.5 million hectares) ranks it 9th in the world. In 2021 country’s grain production increased by 32% compared to 2020 (incl. export), none the less due to favorable climate conditions. It is planned to send 40% more grain and oilseeds abroad (up to 70.1 million tons). According to experts, there is a global trend in increasing demand and prices for grain due to a number of reasons: bad harvest periods in other countries due to droughts, poor quality of grain offered for purchase, increased demand for grain from the energy complex.

This causes a big problem. The use of grain for the production of biofuels leads to an increase in its shortage for food purposes. This trend was noted by experts after analyzing sugar and grain prices back in 2002-2008. According to experts, the increase in demand for biofuel production caused a long-term global impact on the growth of grain prices (up to 30%). Thus, the development of the biofuel market in Ukraine will cause an increase in demand for cereals and oilseeds within the country, which, having a high nutritional value, will be used exclusively as industrial crops. This will increase the rate of inflation in the country and will not compensate for the energy hunger caused by a reduction in the volume of fossil fuel purchase.

It should be noted that the cost of biofuel production in Brazil is significantly lower than in other countries, due to cheap labor, country’s climate, using sugar cane production (the yield of ethanol from 1 ha is the highest – 7,500 liters). Unfortunately, Ukraine cannot boast such indicators. There are no conditions for the production of sugar cane, 6240 liters of ethanol can be obtained from 1 ha of sugar beet, 2760 liters from 1 ha of wheat, 3800 liters from 1 ha of corn. The costs of growing and harvesting are also higher than in South America. Taking into account the low prices for energy carriers (oil, gas), the production of biofuels becomes economically unprofitable. The autumn-winter of 2021-2022 was characterized by a multiple increase in gas prices, but this trend is rather speculative and prices should stabilize by the summer of 2022.

It is worth pointing out another unfavourable aspect of the development of the biofuel market, especially in developing countries with insufficiently stable economies. In order to reduce the cost of grain production as the main source of bioethanol, manufacturers start to search for  options for both an intensive and extensive modes of production. An intensive mode is to use highly productive plant varieties and increase the use of chemicals to protect the crop from pests and weeds. This method the United States actively uses in the production of corn. However, long-term use of monoculture (corn), uncontrolled treatment of crops with pesticides, including glyphosates, have led to significant soil degradation and reduced fertility, accumulation of toxic substances in the nearest area and reservoirs. Despite the fact that GM corn, soybeans and other crops are formally considered environmentally safe, most countries, including from the European Union, have put a veto on the use of GM products in human nutrition. This will also occur in Ukraine if, in pursuit of the dollar, the country’s leadership and businessmen begin to actively implement this method of production. The damage caused to nature as a result of the intensive use of pesticides will be very difficult and long to compensate. Much damage to environment as a result of the intensive use of pesticides It will take much time and efforts to compensate damage caused to nature as a result of the intensive use of pesticides. Currently, Europe, which has also actively used various herbicides and insecticides in agriculture, is actively trying to introduce organic farming and food production methods, since the further use of chemicals does not increase agricultural productivity.  

Brazil is a good example of extensive cultivation of plants for bioethanol production. Journalists and environmentalists have repeatedly expressed concern that the areas used for crop planting including sugar cane, increase due to deforestation of Amazon lands. In particular, since 1970, forest area in Brazil has decreased by 20%.

Ukraine’s total forest area is 9.6 million hectares, which is 15.9% of the whole country’s territory. Exploitation and deforestation of forest areas in Ukraine in order to increase the cultivation areas for biofuels production can also lead to significant changes in environment, in particular, degradation and fertile soil erosion, a decrease in plant and nature biodiversity, an increase in the frequency of fires, additional CO2 emissions into the atmosphere, the appearance of dust storms and raise of temperature.

The destruction of forests for the development of the bioenergy complex contravenes the very principle of reduction of harmful substances and CO2 emissions. However, in June 2021, the President of Ukraine initiated the regeneration of forest areas and their increase by 1 million hectares by 2030. It a positive sign that in the pursuit of profit, Ukraine is not ready to sacrifice its environmental well-being.

In conclusion, I would like to note that the study of alternative energy sources will allow to open up new opportunities in the development of mankind and the production of products in the future. Most countries are still thinking about the prospects of using biofuels. However, the unconditional rejection of already existing, proven energy sources can lead to serious problems in the economy and industry, cause uncontrolled inflation and the energy crisis that was observed in the fall of 2021. When making decisions regarding the energy complex, it is worth thinking about the balance between costs and production, ecology and the use of minerals.

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