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Economic Expediency of Production and use of Biodiesel in Ukraine

Author

Listed:
  • Shevchenko Yelena B.

    (Ukrainian State University of Chemical Technology)

  • Kurennaya Irina G.

    (Alfred Nobel Dnipropetrovsk University)

Abstract

Dependence on import of energy resources significantly holds back development and stability of Ukrainian economy. Such a dependence influences national and energetic security and the use of petroleum products as sources of energy presents significant ecological threats. This dependence stimulates intensive search for alternative sources of energy. Production and use of biofuel, namely biodiesel mixtures, are considered among other ways of solution of this problem. The most optimal type of biodiesel mixtures are mixtures, which contain not more than 30% of biodiesel fuel and 70% of petroleum diesel fuel. Adding up to 30% of biodiesel to the petroleum diesel fuel does not require changes in engine construction. Exploitation and physical and chemical properties of the mixed diesel fuel do not differ significantly from requirements of the diesel fuel standard. The cost of biodiesel fuel is comparable with the cost of diesel fuel and does not result in rise of price. Ukraine has significant potential and conditions for production of biodiesel. However, the current correlation of prices on energy resources and biofuel raw materials makes production of biofuel in Ukraine unprofitable. To stimulate the use of biodiesel, it is necessary to develop and introduce a system of privileges and introduce a strict control, which envisages fines for polluting the atmosphere.

Suggested Citation

  • Shevchenko Yelena B. & Kurennaya Irina G., 2013. "Economic Expediency of Production and use of Biodiesel in Ukraine," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 4, pages 232-236.
    • Handle: RePEc:idp:bizinf:y:2013:i:4:p:232_236
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