ORGANIZATIONAL AND ECONOMIC MECHANISMS FOR ACTIVATING UKRAINE'S BIOENERGY POTENTIAL ON THE BASIS OF A CIRCULAR ECONOMY

Abstract

The article presents a comprehensive study of the strategic transformation of Ukraine's energy landscape through the lens of circular bioeconomy principles. Amid the unprecedented challenges posed by the full-scale armed aggression and the subsequent loss of over 27 GW of generating capacity, the transition toward a decentralized, flexible, and resilient energy system is recognized as a factor in national survival. Unlike volatile solar and wind generation, bioenergy is presented as a unique strategic resource capable of providing a stable base load for the national grid while simultaneously addressing decarbonization and soil fertility restoration.

The scientific novelty of the research lies in the systemic integration of organizational and economic mechanisms — ranging from the recently implemented Feed-in Premium model to significant tax and customs incentives — into the conceptual framework of the circular economy. The paper meticulously analyzes the "Waste-to-Wealth" paradigm, in which agricultural residues are transformed from an environmental burden into valuable energy and material resources. Attention is paid to the biomethane sector, which, as of 2025–2026, has emerged as a critically important export commodity and a direct substitute for fossil natural gas.

Furthermore, the study identifies five strategic directions for capacity expansion, including the development of industrial biorefineries and the large-scale cultivation of energy crops on marginal lands for phytoremediation. The research analyzes the technical, economic, and regulatory barriers hindering the sector's growth, specifically the high capital costs and the complexities of international sustainability certification under the RED III Directive. The conclusions offer a roadmap for attracting $20 billion in investment by 2030, emphasizing that the synergy between the agricultural and energy sectors will enable Ukraine to become a leading "green" energy donor within the EU REPowerEU plan.