CURRENT PROSPECTS OF BIODIESEL PRODUCTION IN UKRAINE

Abstract

The current state of petroleum fuel providing for Ukraine in the conditions of foreign monopoly sources is analyzed and perspectives of European experience application in the sphere of biodiesel production are considered. The comparative analysis of rapeseed production parameters (used rape cultivation area, average yield and gross) in the EU and Ukraine is conducted in the time dynamics. The correlation between the rapeseeds and diesel prices in Europe is defined. The growth of export potential of rapeseed in Ukraine is expected with the current reduction of production. Two variants for rapeseed market development in Ukraine are considered: domestically oriented with the need of infrastructure formation for oil and biodiesel production and export-oriented, economically more profitable in the short term planning. The cost components of rapeseed production and economic feasibility in Ukraine are analyzed in time dynamic and regional grouping. The main accent is made on the Western Ukraine (Ivano-Frankivsk, Lviv and Ternopil regions). The strong correlation between the values of rapeseed production volumes and its crop area is found for Ivano-Frankivsk and Lviv regions (extensive type of farming). The analysis of capabilities for meeting farmers of Ivano-Frankivsk region needs with diesel fuel by processing rapeseed has been carried out and model of possible rapeseed gross harvesting is presented. Improving rapeseed cultivation and local processing in the current geopolitical conditions is strategically important. At the same time complete replacement of traditional diesel fuel in Ukraine by biodiesel is unreal but step-by-step increasing of rapeseed oil production has a strategic economic feasibility in the long term perspective.