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Experts, scientists ready to prove necessity of introduction of feed-in tariff for biogas to authorities

Kyiv, February 13 (Interfax-Ukraine) – A group of experts and scientists has composed analytical materials with the grounds for the necessity to introduce feed-in tariffs for electricity generated from biogas, says the president of Kyiv international energy club Q-club and a member of the Ukrainian Oil and Gas Academy, Oleksandr Todiychuk.

"We'll officially send letters to the president, government and speaker with our conclusions and proposals. We hope that professionals from their side will assess them, and if they do not agree with something – they should release an official and scientifically grounded answer," he said at a press conference at Interfax-Ukraine on February 10, 2012.

Todiychuk said that the introduction of the feed-in tariff for biogas is less than financial support of the state, but it is more a demonstration of respect and understanding of the sector's development by authorities.

"This would change the investment climate in our country to a positive one at once," the expert said, adding that the feed-in tariff for electricity generated from biogas has been introduced in 21 countries of the European Union.

He also said that the president's vetoing of the draft law on the feed-in tariffs for electricity generated from biogas supported by the parliament is linked to a lack of unbiased information at the presidential administration.

Director of the Biomass Scientific and Engineering Center and Department Head at the Thermal Physics Institute of the National Academy of Sciences of Ukraine Dr. Heorhiy Heletukha said at the conference that biogas with time could be a real alternative to expensive imported natural gas.

"With the development of agriculture Ukraine will have more resources to generate biogas. Today the resources are enough to produce 2.6 billion cubic meters of natural gas equivalent per year. With the further development of agriculture, as experts forecast, the figure could grow to eight billion cubic meters," he said.

He said that if the decision on the introduction of the feed-in tariff for biogas were made, at least 4,000 biogas plants could be installed in Ukraine over 5-10 years.

Experts said that the payback period of an average biogas plant worth EUR 1.3 million, with the introduction of the feed-in tariff, will reach 7-10 years and without the tariff – up to 50 years.

"We should support the sector during its spring and growth so as to attract investors," Todiychuk said.

He said that apart from the extremely important ecological aspect and heat and power generation from agricultural waste, supporting the sector support would create a real alternative to imported natural gas in certain volumes.

As reported, in early November 2011, President Viktor Yanukovych vetoed amendments to the law on electricity, which expanded the feed-in tariff for electricity generated from biogas. The Ukrainian parliament passed the amendments on October 6, 2011: a total of 349 lawmakers supported the draft.

On November 16, 2011, the parliament decided to address to the head of state and ask for the revision of clauses in the draft law on the introduction of a feed-in tariff for electricity generated from biogas.

At a meeting of the related parliamentary committee, director of the Renewable Energy Institute of the National Academy of Science of Ukraine, Viktor Reztsov, said that the president's arguments that had been allegedly proved by the conclusion of the Renewable Energy Institute are groundless.

On February 9, 2012, the Ukrainian parliament agreed with a proposal of the Ukrainian president and rejected a draft law on the introduction of a feed-in tariff for electricity generated from biogas.

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