MHP to receive $30 million from IFC for the production of liquefied biomethane

IFC, the International Finance Corporation of the World Bank Group, will provide a loan of up to $30 million to Vinnytsia Poultry Farm LLC (a subsidiary of MHP Agro Holding) to finance the modernisation and expansion of the plant’s biomethane production capacity from agricultural waste.

The total cost of the project is estimated at $52 million. In addition to the IFC loan, MHP expects to finance the project with its own funds. It is also expected that the project will be supported by a $15 million guarantee from the European Fund for Sustainable Development Plus, the UK, and other donors.

It is noted that the company already operates two biogas plants to convert manure from its farms into green energy. As part of its decarbonisation strategy, MHP plans to increase biomethane production in Ukraine by modernising and expanding the capacity of its biogas plants in several stages. The first stage, which will be financed under the project, will serve to demonstrate the viability of liquefied biomethane production.

The investment will be directed to a biogas plant in Vasylivka village (Haisyn district, Vinnytsia region).