Ukraine: Turning agricultural waste into energy in Mykolaiv Oblast
In Mykolaiv Oblast, where businesses face persistent challenges with energy supply and rising operating costs, agricultural company “Ukraina” is turning agricultural waste into a new source of energy and income.
With financial support from the Ministry of Foreign Affairs of Denmark through the Danish Refugee Council (DRC), the company purchased a pellet production line that processes agricultural residues such as straw, lucerne, sunflower husks and sawdust. The company also invested its own funds to install the equipment and prepare the production facility.
The company is a multi-sector farm engaged in crop production, livestock farming and processing. In recent years, it has also invested in energy solutions, including a biogas facility. The new pellet production line is another step towards making better use of resources generated through its agricultural activities.
We had been considering this for a long time, but there were never enough resources. The grant gave us a starting point, and we were able to invest our own funds to complete the installation and prepare the facility. For us, this is about moving towards processing, where we see the future of the business.
Serhii, owner of the company
From agricultural waste to fuel
The new production line allows the company to collect and process agricultural residues that would otherwise have limited use. The resulting pellets can be used to heat the company's own facilities and sold to other customers.
For a business operating in an area without access to gas, locally produced fuel offers an additional energy option. Using its own agricultural residues also allows the company to reduce its reliance on externally sourced fuel and diversify its income.
The investment has also created new opportunities for local employment, including positions related to operating and maintaining the equipment, as well as logistics and transportation.
Looking ahead
The company plans to make further use of the production line by adapting it to produce granulated animal feed.
“We plan to install a smaller matrix and use this line to produce animal feed as well. Granulated feed is much more efficient — there are fewer losses, and animals utilise it better.”
The company is also exploring additional investments in renewable energy to address frequent power cuts and maintain production.
We are also considering installing a solar power station to ensure continuous production. This is an investment that could pay off within a few years.
Serhii
For “Ukraina”, the investment has opened a new way to use agricultural resources, diversify the business and develop locally produced energy solutions. By combining grant support with its own funds, the company is strengthening its operations, making better use of local resources and creating opportunities for further growth in Mykolaiv Oblast.
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