Ukraine consumes about 30 billion cubic meters of natural gas a year, mostly for heating and industrial purposes. With 42 million hectares of agricultural land, the country’s agricultural sector can harness biomass from a large variety of materials, including wood, as a promising alternative energy source.

At present, biomass accounts for 9 percent of Ukraine’s total heat production. Contributing to this growing share of energy production, Perfekt Pak produces wooden pallets and uses the production waste to help power not only the company itself but also Stryi, a town in the region of Lviv in Ukraine, by converting it into electricity and heat and selling the energy to the grid at a profitable green tariff.

To produce electricity and heat, Perfekt Pak uses the classic steam-power cycle. The biomass (wood waste) is burned in the steam boiler to produce heat energy, converting feed water into high temperature and high-pressure steam, which then goes through steam turbines where it performs mechanical energy. This energy rotates the turbine blades to produce electrical energy in the generator rotor.

The steam extracted from the turbines can be used for various process needs and hot water heating for hot water supply, district heating, timber heating and drying agricultural products and chambers.

Perfekt Pak benefitted from PFAN’s advisory services, in particular in the areas of preparation of their business plan, project structure, economic feasibility and introductions to investors.

“Thanks to PFAN, we met Yuriy Vaskevich [an investor], who supported my strategy to develop the business and increase production by 300%” says Sergii Telishevskiy, owner of Perfekt Pak.

“PFAN helped me make the right financial model, checked my calculations and adjusted them. They drew my attention to the mistakes I made – I managed it thanks to PFAN Advisors”.

The social, economic and environmental benefits are multifold. As a source of renewable energy, biomass helps reduce significant carbon dioxide and greenhouse gas emissions, slowing down the impact of global warming and climate change.

In addition to providing the town with a fuel source to keep households and social institutions warm, it also increases job opportunities and accelerates the country’s transition to a green economy.