Active Energy Group proposes biomass PPP projects in Ukraine
Active Energy Group Plc (AEG), through its CEO Richard Spinks, has unveiled the group’s proposal for several biomass public private partnership (PPP) projects with the Ukraine government.
According to him AEG could assist the country in achieving three of its key national energy objectives:
- implementing its Sustainable Energy Action Plans to improve energy efficiency and share of renewables in power generation;
- achieving compliance with the EU energy market and opening new avenues of cooperation with EU member states; and
- securing its power generation sources, a vital step in enabling it to attain full energy independence.
Renewable energy currently accounts for a mere 0.6% of the Ukraine’s electricity generation capacity, compared to the EU target of producing 20% of member states’ energy from renewable sources by 2020.
Under its proposed PPP initiative, Active Energy Group intends to work alongside the Ukrainian government and international investment funds to accelerate the move away from the country’s reliance on foreign energy imports towards a renewable energy industry based upon sustainable management and commercialisation of its forestry assets, and development of a national network of Biomass-fuelled power plants.
If the PPP proposal is accepted, AEG plans to construct and operate clean energy Biomass power plants in partnership with the Ukraine state authorities close to the forests to serve local villages, towns and cities, utilising waste wood and low-grade timber gathered from enhanced forestry operations.
As a first step, AEG has proposed commencing a pilot project with the Ukraine State Agency of Forestry Resources (SAFR) to cover an initial 500,000 hectares of timberland in the country.
Based upon the Canadian model developed by AEG, which attracted US$300 million of investment offers in January 2015, the company’s proposed PPP initiative would be structured to seek to relieve pressure on the Ukrainian treasury and state budget, while enabling modernisation and improvement of the country’s existing forestry management resources.
