OREANDA-NEWS. April 03, 2013. This year the Government continues to develop alternative fuel sources, in particular, to increase the production of bioethanol. It is provided by the State Program of activation of the economic development for 2013-2014.

To do this, a number of distilling plants will change the line of business. This in turn will make such businesses profitable; it also helps to reduce dependence on imports of light oil products, as well as ensures compliance with the law on adding biological components in gasoline. This was announced by the Minister of Agrarian Policy and Food Mykola Prysyazhnyuk.

"Over next two years we plan to change the line of business of 29 distilling plants. These plants will be engaged in the production of bioethanol, and they produce about 360 000 tonnes of bioethanol annually. This will significantly increase the level of energy independence of the state, reduce energy imports, primarily light oil," Mykola Prysyazhnyuk noted.

The Minister also recalled that under the law, in 2014 a mandatory share of bioethanol in the fuel is 5%.

"I am convinced that we will be able to revive the alcohol industry. And we chose the right way: the future lies with alternative sources of energy. Especially we have to meet the requirements of legislation, as from 2014 year the 5% share of bioethanol in the fuel becomes mandatory," Mykola Prysyazhnyuk noted.

The Minister also noted that sugar refineries will have the ability to provide alternative fuel sources. In particular, depending on market producers have to choose what to produce, - sugar or ethanol.

"Sugar production industry produces sugar more than it is consumed in the country. The rest of sugar we export. However, the producers do not lose money when the price for the product is minimal as it has been this year we offer them to change the line of business too. Depending on market producers will choose to produce ethanol or sugar," Mykola Prysyazhnyuk noted.

On changing the line of business in 2013 will be allocated UAH 209.8 million and in 2014 - UAH 140.2 million.