EBRD gives OKKO Group €60 million to build a biofuel plant

The European Bank for Reconstruction and Development (EBRD) will provide a €60 million loan to the Ukrainian private company Lan-Oil LLC as part of its first project to finance the construction of a new private biofuel plant in Ukraine since the start of the full-scale war.

This was reported by AgroTimes with reference to the EBRD press service.

The credit is accompanied by a financial guarantee from the European Union, which is provided under the investment component of the Ukraine Facility (Pillar II) program.

The EU guarantee is part of the new €150 million Ukraine Investment Framework program, which was signed at the Ukraine Recovery Conference in Berlin. The program provides support for new and existing climate technologies in line with the EU’s detailed Plan for Ukraine, particularly in the energy sector.

The new project will contribute to Ukraine’s energy security and decarbonization of the energy sector by creating a domestic source of bioethanol, which reduces greenhouse gas emissions by 70% compared to traditional fuels.

The project is being implemented by Galnaftogaz and OKKO Group. As of December 2023, Galnaftogaz owned and operated 396 filling stations under the OKKO brand.

The biofuels produced at the new plant will meet the requirements of the EU Renewable Energy Directive (RED III).