Every year Ukraine gathers approximately 50 million tonnes of cereals resulting in the generation of roughly the same quantity of straw that may be used for energy purposes. Only 1% of the available potential is now being used for heat generation mainly.

KT-Energy has experience of participating in the straw fired power plant projects development and elaborated connections with suppliers of technological solutions and equipment for combined generation of heat and electricity using straw as a fuel. Such energy projects are able to satisfy needs of an enterprise in heat energy, as well as bring revenues due to the sale of electricity to the grid by the “green” tariff.

In 2010 a study on straw use as a fuel has been prepared. The study considers the issues of straw collection, storage and combustion with heat and electricity generation.

Preparation of the study involved execution of the following tasks:

• description of straw characteristics and peculiarities of straw use as a fuel, fertilizer and animal feed;
• detailed analysis of capital and current expenses on the straw collection, baling and storage;
• calculation of costs of straw collection in order to analyze investment attractiveness of the projects on energy use of a straw as a fuel;
• evaluation of straw production volume, consumption structure and forecasting of straw and straw based products development in Ukraine and worldwide;
• analysis of types and potential suppliers of equipment for straw collection, baling, transportation and combustion;
• straw pellets market examination in Ukraine and worldwide;
• analysis of state regulation in the areas of heat and power generation using straw as a fuel source.