Ukraine Actively Develops Bioethanol Production from Corn for Domestic Market and Export

Ukraine is experiencing rapid growth in bioethanol production, particularly due to the large-scale construction of new processing facilities within industrial parks. Currently, facilities are under construction with a total annual capacity of about 1 million tons of bioethanol. To operate fully, approximately 3 million tons of corn are needed each year.

This is reported by AgroReview

Potential of Ukrainian Bioethanol in the European Market

According to Taras Mykolaienko, director of the Ukrainian Association of Bioethanol Producers, the European market consumes up to 6 million tons of bioethanol annually, and Ukrainian producers have significant potential to expand their presence there. During negotiations to update the trade agreement between Ukraine and the European Union, the EU initially proposed a quota for bioethanol imports of 100,000 tons per year, but the Ukrainian side managed to increase it to 125,000 tons. In the future, the industry aims to raise this figure to 300,000 tons by 2026.

Legislative Initiatives to Support the Bioethanol Industry

A new draft law registered in the Verkhovna Rada since July 2025 is expected to give an additional boost to the development of the domestic bioethanol market. The document stipulates that from July 2026, a mandatory share of bioethanol in fuel will be introduced in Ukraine — over 7%, with a subsequent increase to 10%. This regulation will also apply to imported fuel. Industry experts expect that this measure will significantly increase domestic consumption of bioethanol.

“Whenever it comes to creating a new industrial park, bioethanol production is planned in every second one. Just the capacities that are starting to lay the foundation amount to 1 million tons. If we convert (these figures, — ed. note) into corn, we need 3 million tons. Thus, corn, in an optimistic scenario with full capacity (of bioethanol plants — ed. note), will be processed here,” he said at the conference “Conducting Agribusiness in Ukraine.”