PROSPECTS AND EFFICIENCY OF BIODIESEL PRODUCTION IN UKRAINE FROM OILSEED CROPS
Authors: KALETNIK Hrygoriy , KLYMCHUK Oleksandr , MAZUR Victor 
Published: February 2020

On the basis of the analysis of energy expenditure in agriculture in Ukraine and other countries of the world, it is established that the share of expenses of fuel and energy resources in the structure of production costs of Ukrainian agricultural production is twice that of the American producers. High energy intensity of production shows that there is a significant potential for increasing energy efficiency and competitiveness of Ukrainian products. The agro-industrial complex is characterized by a significant potential of the raw material base, which is necessary for bioenergy production. The development of the bioenergy sector in the country should be consistently and scientifically justified, taking into account the possible impact on the environment and the national economy. The main dangers of unskilled use of fuels from biomass are the massive destruction of forests, the development of erosion processes and depletion of soils, the unjustified replacement of food crops with energy. Therefore, an analysis of the possibilities for increasing the volumes of biomass energy crops for further integrated processing and production of biofuels, in particular biodiesel, should be made taking into account the real situation with existing food needs and available sources of fossil fuel resources. The accelerated pace of development of technically available renewable energy resources will allow Ukraine's energy sector to develop in line with the European Union's long-term economic and energy policy.

The rational use of resources is an important condition for increasing the production of goods, as well as substantiation of opportunities for fuller use of existing production potential of agrarian enterprises in conditions of market relations. One of the most effective, especially for the agro-industrial sector, is the biodiesel (containing 90% of diesel fuel) among the liquid varieties of biological fuels. Biodiesel is widely used in many countries of the European Union and the world. Its production for use in its pure form requires considerable additional investment, so in most countries mixing oil fuel with rapeseed oil is introduced or used as an additive in the range of 5-30% of diesel fuel. The rapid growth of capacities in the production and consumption of biodiesel shows that the world market has a progressive dynamics and significant prospects in the future. It should be noted that in Ukraine the process of industrial production of biodiesel is still not fully developed, but small agricultural enterprises and farms are already producing it for their own needs (production is about 20 thousand tons annually). Production of this type of biofuel will be justified only if rhythmically renewable stocks of cheap raw materials are used and harm to the environment will be minimized.

The obtained research results prove the necessity to improve the formation of the price mechanism for biofuel oilseeds in the direction of a strategic transition to a pricing system that would be able to timely influence the regulation of the market and level the fluctuations of prices during each marketing year. Based on the calculations, it has been established that the current biodiesel production process in Ukraine will be economically advantageous from rape and sunflower seeds and economically unprofitable from soybean seeds, under the current price policy for oilseeds (rapeseed, sunflower, soybean) and petroleum diesel. Analytical calculations indicate that the production of a finished bioenergy product for consumption is characterized by greater economic benefits than the mass exportation of raw materials. Own production of biodiesel results in a reduction in energy prices, obtaining high-quality feeds for the development of the livestock sector and the leveling of the price disparity in agricultural, industrial and energy products existing in our country. The intensive and dynamic development of bioenergy requires complex optimization of this process taking into account the needs of both the fuel and food sector of the economy, as well as state regulation of exports of biofuel raw materials.

Despite the high levels of economic efficiency of rape and sunflower oil processing for biodiesel and a number of positive aspects of the growth of the economic development of the territories from biodiesel consumption in the agrarian sector of the economy highlighted, mineral diesel fuel continue to be used in the vast majority of Ukraine. The current level of productivity of biomass of agricultural crops in Ukraine is still far from optimal indicators of technological aspects of its cultivation, efficiency of use and market compatibility. The main reason lies in the rather low level and dynamic volatility of the crop yield of the main and by-products, which is, consequently, the result of insufficient supply of technology for growing and reducing the level of production intensity. A rational system of organization and management of agricultural production involves the effective use of land, which will provide expanded, competitive and continuous production in the conditions of development of market relations. The presence of various forms of ownership in the agrarian sector of the economy requires the organization of a production process for obtaining maximum levels of productivity of biomass of agricultural crops at optimal labor costs in order to form a raw material base. As a result, agricultural enterprises receive an incentive to expand production, rationalize the production process, introduce the latest advances in science and best practices, and develop biofuels production.

Thus, in the context of the study, it was found that the systematic use of oilseeds biomass (rape and sunflower) as a renewable energy resource in Ukraine is characterized by the lowest capital expenditure and the most economic benefit. Available in the country's agro-industrial complex, the powerful potential of the scientific, technical and industrial base for the cultivation of biomass oilseeds provides the biofuels industry with high economic efficiency in the use of rapeseed and sunflower seeds, which gives grounds to distinguish it into a separate competitive energy sector. Biomass of oilseeds allows you to solve energy problems of the agroindustrial complex of the regions and districts of the country independently at the local level.

In the future, it will be necessary to carry out a scientific substantiation of the use of arable land for the cultivation of oilseeds in order to increase the production of food resources and make the development of biodiesel production at an industrial level. The perspective direction in the production of biodiesel is the use of special types of algae as lipid raw materials. A new technology for the production of biofuels from algae (third generation biofuels) will help solve the problem of lack of raw materials and minimize global food security issues.