You're reading: Chinese investors to launch biofuel production in Sumy region

Chinese investors are to change the line of business of a distillery in the Village of Popovka in Konotop district (Sumy region) to the production of bioethanol, reads a posting on the Web site of Sumy Regional State Administration.

The statement does not specify the exact sum of investments and the terms of the project’s implementation.

The CEO of the Ukraine-China council on trade and economic development, Yevhen Kalinin, said that Chinese investors have a program for the modernization of distilleries in Ukraine with their transfer to the production of bioethanol. He said that China is planning to invest around $120 million in the project. According to Kalinin, this sum may be much higher.

"Ukraine is an energy-dependent country. Due to this we have to switch to using domestic raw materials. President Viktor Yanukovych gave us this task. We have visited Sumy region. Chinese investors received a signal that they can enter Ukraine through Sumy region," Kalinin said.

The distillery in Popovka produces 30 tonnes of spirits per day. Some 70 residents of the village work there. Thanks to the investments the plant could be extended and new working places could be created.

According to Deputy Head of Sumy Regional State Administration, Serhiy Slyzky, construction of a starch plant, farming complexes and other agricultural facilities on the territory of the region is being discussed with Chinese investors.

Bioethanol is a kind of biofuel produced from processing of herbal raw materials. Crops containing a lot of starch or sugar (potatoes, sugar beets, barley, etc.) are used for production of bioethanol.