In Northern Russia a plant to produce 100,000 tonnes of bioethanol per year from wood waste

Vladimir Putin
Vladimir Putin

The Komi Republic in Northern Russia could host a plant that would produce 100,000 tonnes of bioethanol per year from wood waste. The proposal, coming from Egregor Biotech and Evolution Group, was presented last week, Komiinform news agency reported. Over 15 million rub (196,000 US dollars and 177,000 euro) have already been spent on the project. The total investment required is estimated at 136 million euro. A process to create a pool of investors is underway, with different options for the realisation of the project being considered, including a public private partnership.

Under the plans, the facility would process up to 400,000 tonnes per year of non-food feedstock such as unusable timber and sawmill residues. The Komi Republic has rich forest resources. The local authorities have proposed a site of 6.3 ha (15.6 acres) for the construction of the plant.

Currently, about 85% of world production of liquid biofuels accounted for bioethanol. Two of the largest producer of bioethanol – Brazil and the United States of America – account for almost 90% of total production, with the remainder accounted for mainly in Canada, China, the EU (mainly France and Germany) and India.

Bioethanol is one of the most dynamically developing agricultural products. In near-term growth in the global bioethanol market will be about 10% per year.

However, only in Brazil ethanol is cheaper than gasoline. In the United States compensate for bioethanol fuel balance to restrain oil prices. At least up to 2020 petrol will cheaper fuel, but ethanol is a huge growth potential as in more environmentally friendly and renewable source of energy.

In Russia, Vladimir Putin lauched in 2012 the Program of biotechnology development, with the goals to achieve a share of 8% of biofuels in the total consumption of motor fuel already in 2018, and the share of agricultural waste , recycled through biotechnology , should be at least 15% by 2018.

In 2013. Dmitry Medvedev approved a roadmap Development of biotechnology and genetic engineering, compatible with that currently preparing to adopt the regulations necessary to regulate the manufacture and sale of biofuels. Cancellation of excise duty on fuel ethanol, ensures the rapid growth of the biofuels market in Russia. So, for example, from 1.7 billion gallons of ethanol produced in Russia, 80% goes to the alcoholic beverage industry. Yet the potential of the Russian market of fuel bioethanol by 2020 about 8.7 billion liters.

Egregor Biotech was established in 2013 in accordance with the state program for the development of this market in Russia.


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