The European Bank for Reconstruction and Development is promoting investments in innovative technology and best practices associated with the use of agricultural waste in Ukraine by providing sustainable energy financing in line with its strategy for the country.
A senior long-term loan of up to €15 million ($17 million) will be provided to I&U Group to finance the development, construction and operation of a 6 MW biogas plant located in the Kirovograd region of central Ukraine.
The financing package will consist of a €13 million ($14.8 million) loan from the EBRD and a €2 million ($2.28 million) concessional loan from the Clean Technology Fund designed to support renewable energy and technology aimed at reducing carbon intensity. This will be the first project supported under the Ukraine Agribusiness Waste Residues Window, funded by the CTF.
This will be the first facility in Ukraine to use an innovative biogas production technology, which will reduce energy consumption. The remaining residues of the biogas process will be used as bio-fertilisers, partially replacing the use of chemical fertilisers. The project will result in a total reduction of 24,000 tonnes of CO2emissions annually.
The project will benefit from a $ 534,800 incentive grant from the EBRD’s Finance and Technology Transfer Centre for Climate Change program, funded by the Green Environment Facility and designed to transfer technology in the area of climate change mitigation and adaptation, as well as a €22,150 ($25,000) grant from the European Union’s Neighbourhood Investment Facility. A significant part of the legal due diligence cost will be covered by grant funding from the Japan-EBRD Cooperation Fund.
Photo: The new technology will make it possible to use more than 60,000 tonnes of sugar beet pulp per year. (EBRD)