Ukraine Taps Grain for Fuel Amid Port Blockade

Ukraine's grain exports are severely impacted by the blockade of ports by the Russian army. To address this issue, it has been proposed to use un-exported grain for ethanol production instead of exporting it as raw material.

Sergey Makogon, ex-director of the Ukrainian GTS Operator, notes that Ukraine annually produces tens of millions of tons of grain and the solution is processing it instead of raw exports.

The bioethanol industry in Ukraine has seen explosive growth with a 160% increase in production capacity over the past year. The export of Ukrainian bioethanol to the EU also increased by 10.6% in the first half of this year.

Makogon sees an opportunity for the agricultural sector to receive a new crop sales channel and reduce dependence on imported petroleum products, citing that an increase in ethanol's share in fuel reduces the need for pure gasoline for every liter of refueled fuel. In Brazil, it reaches up to 30%.