Mykolaiv and Odesa regions have a large number of agricultural companies for bioethanol production — analysts

A bioethanol plant. Illustrative photo: UTC

Mykolaiv and Odesa regions are among the regions with the highest potential for supplying raw materials for bioethanol production.

This is evidenced by analytical data from YouControl.Market, according to NikVesti.

According to analysts, agricultural companies that can provide the necessary raw materials are concentrated in Kirovohrad region — 1716 enterprises, Dnipropetrovsk region — 1569, Poltava region — 1420, Vinnytsia region — 1361, as well as in Odesa region — 1236 and Mykolaiv region — 1109. The leaders also include Cherkasy region (1023) and Kyiv region together with the capital (1175).

Number of agricultural companies that can provide the necessary raw materials for bioethanol production. Infographic: YouControl.Market

In addition, Mykolaiv is among the top 10 cities in Ukraine with the largest number of agricultural enterprises — potential suppliers of raw materials. Kyiv is in the lead with 188 companies, Mykolaiv is second with 85, and Kropyvnytskyi is third with 57. Dnipro (49) and Kharkiv (43) are also in the top five. This concentration of business creates favourable conditions for locating bioethanol production facilities near cities, with access to raw materials, specialists and the necessary infrastructure.

«The high concentration of agricultural companies in these cities indicates favourable conditions for the location of bioethanol production facilities near them, with access to raw materials, infrastructure and skilled personnel. The top ten also includes other major cities in agricultural regions, for example, we can expect the presence of regional centres such as Vinnytsia, Odesa, Poltava», analysts say.

As part of its European integration course, Ukraine is introducing a mandatory requirement to add at least 5% bioethanol to petrol starting 1 May 2025. Although the introduction of fines for non-compliance has been postponed until 2026, the regulatory framework for market development has already been created.

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It is noted that Ukraine has important prerequisites for the development of the bioethanol industry: a strong agricultural sector, significant volumes of grain and sugar crops, and molasses production. The use of bioethanol in fuel helps to reduce CO₂ emissions, strengthens the country's energy independence and creates a stable market for agricultural producers.

As of 2025, the country has 17 bioethanol plants with a total annual capacity of about 430 thousand tonnes. This is more than four times the domestic demand required to meet the E5 standard.

Analysts are convinced that the development of the bioethanol industry can bring a number of key benefits to the state and business, from reducing fuel imports and strengthening energy independence to improving the environment and creating new jobs in rural areas.

As reported earlier, a bioethanol company in Ukraine was found to have evaded excise tax on a particularly large scale.