MODERNIZATION OF AGRICULTURAL BUSINESS IN UKRAINE FOR DEVELOPMENT OF BIOFUEL PRODUCTION

Abstract

The topicality of the research is substantiated by the fact of recent global energy crisis.  We analyzed trends in the processes of crisis solution that took place in domestic and global bioenergy and its impact on energy security of Ukraine. An assessment of the current state of energy security of Ukraine is conducted. The concepts of energy security solution are taken into account, based on the experience of biofuel production in the European Union. The necessity of state stimulation of agrarian business of Ukraine for the purpose of its modernization and overcoming the problems in the field of bioenergy is provided. This trend will promote the decision of economic, social, ecological problems and achievement of national strategic purposes. The objective preconditions for the development of Ukraine's agrarian business are revealed. They are aimed at formation of energy security as one of the main factors of national security. The author proposed methodological approaches which are focused on analysis of ensuring and implementing energy security in Ukraine due to the bioenergy potential of agribusiness. The research analyzes trends in the formation and development of energy security, which determine the structural and quantitative changes in the production and consumption of biofuels. The aim of the article is to reveal the main factors and trends that affect the implementation of energy security in Ukraine through biofuels, and identify in this process the key opportunities and challenges for domestic agricultural business. It is determined in the article that biomass is a promising source of energy both in the world and in Ukraine. Biomass ranks fourth in the world in terms of its energy use currently. Ukraine has seen a gradual increase in the number of facilities and installed capacity for the production of heat and electricity from biomass in recent years. The main purpose of the study is to analyze the opportunities and challenges associated with the development and modernization of agribusiness in Ukraine aimed at increasing biofuel production. The term "energy security" is described as a process of managing the national security system, in which the competent public authorities in cooperation with agribusiness ensure the transition to renewable energy sources, including biofuels, which will promote regional development and local economy through taxes and fees. Energy security at the national level will be increased through improving the trade and balance of payments by reducing energy imports. The factors influencing the formation of energy security are systematized. Prerequisites for the implementation of projects for the production of biofuels in Ukraine have been identified, which will give a positive socio-economic effect by creating new jobs, reducing tariffs for thermal energy and improving the reliability of heat supply. The research has been proved that biofuel projects already implemented in Ukraine are economically feasible. At the same time state support and promotion of bioenergy development stimulate investors and financial organizations to implement new bioenergy projects in Ukraine.