OKKO launches a bioethanol plant: the ‘queen of the fields’ corn once again becomes domestic currency

IA “FACT” already wrote, which from May 1 has fundamentally to change Ukrainian fuel market: gasoline without bioethanol will gradually become a thing of the past. Law No. 3769-IX establishes a clear norm: the presence of at least 5% of the biocomponent in each liter of motor gasoline. This is not just an innovation, but a test of market maturity and readiness of Ukraine to play by European rules.

OKKO launches a bioethanol plant: a step towards energy independence and a green economy of Ukraine

The launch of own production of bioethanol in the second half of next year is planning OKKO group of companies. This year will be the construction of an elevator and warehouse complex for receiving corn grown in its own agricultural cluster was completed.

For the years 2024–2026 per project are planning spend 110 million euros. The company invested a third of this amount on its own, and borrowed the rest. In particular, the EBRD provided 60 million euros for 9 years, and Raiffeisenbank Ukraine – another 15 million for 7 years. Such support shows that international partners trust the project and believe in its importance for changes in Ukrainian energy.

In this ambitious story, corn once again proves its unique role. The “Queen of the Fields”, which for decades remained among the pillars of the country’s economy, is now entering a new era. Now it is not only a product of the food or agricultural industry – corn is becoming a symbol of energy changes, entering the economic mainstream in a new capacity: as a raw material for the production of bioethanol. This transformation opens up not just new markets, but entire horizons for the Ukrainian agro-energy future.

Annual capacity of the OKKO plant will reach 83 thousand tons of bioethanol, as well as 70 thousand tons of feed products. OKKO is preparing to launch not just a bioethanol plant, but a symbol of the new domestic course for energy independence and ecological modernization. And although it is officially reported that the main raw material camp corn, the scale of ambition is much wider: technologies allow the use of wheat, sugar beet, sorghum and even agricultural waste – something that until recently was considered unnecessary ballast. This approach opens the way for Ukraine to develop a true circular economy, where waste becomes a resource, not a problem.

As the specialized associations emphasize, in particular, the Bioenergy Association of Ukraine, the use of by-products of agriculture can make the production of bioethanol cheaper, as well as reduce the burden on the environment.

Yes or not camp is the new plant also an energy-saving breakthrough? It seems so. Modern technologies — enzymatic hydrolysis, rectification and dehydration of bioethanol — make it possible to spend less energy per unit of production. Moreover, part of the by-products — bard — can to be used for biogas production. This has long been a proven practice at similar facilities in the world, for example, in Brazil or the USA, and now it is coming to Ukraine as well.

It is already clear: the demand for corn will increase, and not only due to domestic processing. Plant is planning to process up to 250,000 tons of corn annually, which means that local farmers will have new sales opportunities and a stronger incentive to invest in their farms. The logic is simple: the more factories will work in the country, the less dependence on the unstable world market and price fluctuations.

Increasing domestic processing of corn can not only stabilize prices, but also help farmers avoid losses due to export logistics problems.

But the potential of this plant goes far beyond the domestic market. Today, Ukraine is already approaching the exhaustion of the bioethanol export quota within the framework of the agreement with the EU — last year’s export composed almost 100 thousand tons out of the allowed 100 thousand. The main consumers are Lithuania, Poland, Switzerland and Latvia. Such a surge in Ukrainian bioethanol has already raised concerns among European competitors, which may force Brussels to demand additional restrictions or a revision of trade conditions.

Bioethanol in gasoline: an ecological breakthrough or a test for the market and drivers?

Although only 5% bioethanol will formally be added to gasoline, this change carries with it not only an environmental signal, but also the question: are drivers, cars and the market itself ready for it?

Experts reassure: there are no serious risks. Bioethanol has an octane number of about 106 units, which is even improves gasoline quality — the fuel burns better, the engine runs smoother, the risk of detonation decreases. For modern cars, mixtures with 5-10% bioethanol are absolutely safe and do not require either technical changes or special maintenance.

However, old cars can experience new challenges. The fact is that bioethanol has a property absorb moisture and dissolve old deposits in the fuel system. The result is clogged filters, leaks in worn rubber parts and, as a result, unwanted trips to the service station. Motorists with old cars are advised to be careful: check the condition of the fuel system and, if necessary, prepare the car to run on new fuel.

And what about the prices? Adding bioethanol can increase the cost of gasoline is about 50–80 kopecks per liter. However, world oil prices are falling, so Ukrainian experts predict even a general decrease in the price of fuel this May, which partially offsets the effect of the new admixture.

And the most important thing: in the medium term, bioethanol can become a real golden vein for Ukraine. The use of domestic agricultural products for the production of fuel reduces dependence on oil imports, stabilizes the domestic market and supports farmers. Such a model can help Ukraine not only with ecology, but also with the economy, giving a real impetus to the development of rural areas.

Monitoring of compliance with the law on the use of bioethanol will be carried out by the State Environmental Inspection: so that neither producers, nor importers, nor sellers ignore the ecological course. However, as it turned out, the system is still far from ideal: due to bureaucratic delays — protocol forms and accounting procedures have not been approved — fines in practice so far are not charged.

And fines are promised be tangible: for retailers, each thousand liters of gasoline without the appropriate admixture will cost more than 21 thousand hryvnias. It will be a little easier for manufacturers and large traders — six subsistence minimums, but still unpleasant.

At the same time, the state left “security windows”. The most demanding fuel with an octane number of 98 and higher so far released from mandatory bio-admixture. Similarly, gasoline for the army and the state reserve, which allows not to risk quality in critical sectors.

However, the main question remains open: can the system really work? After all, without strict control, the new norm risks remaining just a line in the law. And the success of the project depends not only on the desire of the state to change, but also on the readiness of business to play by the new rules.

OKKO bioethanol breakthrough: green energy, jobs and a new chance for Ternopil region

The launch of the OKKO bioethanol plant is not only an investment in production, but also a bet on the green transformation of the country, a real chance for Ukraine to reduce greenhouse gas emissions without waiting for the next global agreements or summits.

Bioethanol can reduce CO₂ emissions by 10-15% compared to traditional gasoline. It meansthat every liter of gasoline with bio-admixture reduces the amount of carbon in the atmosphere and makes the air cleaner. Even a small reduction in emissions can be felt on a national scale, especially against the background of polluted transport and old industry.

However, environmental responsibility is not only about what comes out of the tailpipe, but also about how the plant operates. Bioethanol production is not uncommon in the world combine with compensation programs: in particular, planting forests to restore carbon sinks. Such projects within the framework of clean development mechanisms have long been implemented in Brazil.

As for the Ukrainian context, there are no official announcements about compensatory plantations from OKKO yet. At the same time, world trends make it clear: the market will increasingly demand from manufacturers not only green products, but also “green production”.

To reduce their potential environmental footprint, bioethanol plants abroad already are implemented modern practices: use agricultural waste instead of fresh raw materials, implement closed cycles of water use, install solar panels and utilize biomass for domestic energy supply.

In the small towns and villages of Ternopil Oblast, they have always waited for large investments as a chance to change their fate. And now, with the launch of the OKKO bioethanol plant, this chance is becoming a reality.

Although the company has not yet officially announced the exact number of jobs, the scale of the project speaks for itself. The capacity of 83 thousand tons of bioethanol per year and the volume of processing up to 250 thousand tons of corn every year require hundreds of people: from line operators and agronomists to logisticians and technical personnel. And this is just the beginning. Around the factory are planning to create an industrial park with offices, warehouses, retail premises, which will give the region even more opportunities for employment and small business development.

It is not only about creating new jobs. When it comes to social responsibility, OKKO has a good reputation. Even in the first months of the war, the company provided volunteers, the army and doctors with fuel for free, spending almost 20 million hryvnias. Therefore, it is quite possible to expect that in the new region, OKKO will support local communities through assistance to schools, hospitals or the development of sports projects.

In addition, financiers from the EBRD, who supported the project, set a goal: to help veterans return to professional life and open more opportunities for women in technical specialties.

So, the bioethanol plant in Ternopil Oblast is not just another industrial building. These are new jobs, a real chance for a better life for local communities and an example of how large investments can bring not only money, but also benefit to people.

Tetyana Viktorova