Ukraine looks to become European energy hub with nearly $400 bln investment - energy minister
MOSCOW. June 22 (Interfax) - Investment opportunities for creating new energy capacities in Ukraine amount to $383 billion, Ukrainian media reported, quoting the country's energy minister, German Galushchenko.
The Energy Ministry's press office said Galushchenko presented an energy strategy to 2050, the key task of which is to turn Ukraine into a European energy hub, at the Ukraine Recovery Conference in London.
He said Ukraine could during this period increase wind power capacity to 140 GW at a cost of $134 billion, solar capacity to 94 GW for $62 billion, energy storage capacity to 38 GW for $25 billion, nuclear capacity to 30 GW for $80 billion, hydropower capacity to 9 GW for $4.5 billion, and thermal power and bioenergy capacity to 18 GW at an unspecified cost.
Investment of $72 billion would be needed to develop hydrogen technologies and $5 billion for transmission systems.
"The EU can rely on Ukraine. We are prepared to offer European partners green and clean electricity, Europe's largest underground gas storage facilities, potential for hydrogen production energy equipment manufacturing not only for Ukraine's recovery but for Europe's overall energy transition," the press service quoted Galushchenko as saying.
"Our consumption is currently 109 TWh. We can reach another 133 TWh for our own needs and 276 TWh for export. This is our strategy to become a real energy hub in Europe," he said, adding that in order to attract investors, the Ukrainian authorities are making decisions to enable energy market reforms and liberalization.
Deputy Head of the Ukrainian President's Office Rostislav Shurma said in his speech that Ukraine's export potential includes 35 million tonnes of green steel, 3.5 million tonnes of hydrogen, 2.5 million tonnes of green ammonia, and 10 billion cubic meters of biomethane.
Electricity demand will grow significantly as industry continues to develop, Shurma said.
"When we speak about green steel production in Ukraine, we speak about 150-160 TWh of additional needs. If we decide to build a green fertilizer industry in order to supply Ukrainian agriculture and to deliver 2.5 million tonnes of green ammonia to Europe, it is an additional 70 TWh. Hydrogen will add a further 20TWh to it. Besides, Ukraine's transport and heating systems are being transformed. That is why, we are speaking about a total of 700 TWh of additional needs," he said.
A combination of different energy sources, which envisages the development of renewable energy, can help meet this demand, Shurma said. Ukraine has extensive potential in waste recycling, which may also help produce electricity, he said.
Shurma called on investors to engage in projects in Ukraine to produce solar panels, wind turbines and electricity storage systems, adding that Ukraine may offer, first and foremost, low-cost electricity for industrial needs. As regards batteries, Ukraine has all the necessary mineral resources for them, he said.
