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Company News

  • 23/11/2012
    The Energy Investment Company Launched a New Product - BKO (25-100) Lump Brown Coal
  • 29/10/2012
    The Energy Investment Company Opened a New Iskrenne Railway Station of the Odesa Railway for Brown Coal Transport Operations
  • 25/10/2012
    The Energy Investment Company Has Complete Overburden Works at the Brown Coal Deposit
  • 26/09/2012
    The Energy Investment Company Took Part in the Energy in Industry 2012 Exhibition

 

     

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Investment in The Brown Coal Field in Ukraine

Recent statements by the Minister of Energy and Coal IndustryYuriy Boyko on switching central heating and power plants of Ukraine to coal burning caused media frenzy. The press began to report that some central heating and power plants of Ukraine have already switched to burning brown coal, in particular, in the towns of Sumy and Chernihiv, although this information is unconfirmed. 
  
In addition, interest to the brown coal industry is seen by foreign companies from Germany and China, which intend to proceed brown coal into liquid fuels. Over 20 years of Ukrainian independence, none of the announced projects in production and processing of brown coal saw implementation. But now there is a situation that could dramatically change the approach to investing in production and processing of brown coal, since the President and the Government of Ukraine are ensuring energy independence of the State.
 
Nevertheless, the need for brown coal, thanks to its application in various fields is constantly increasing. Today, the agriculture is switching to harmless environmentally friendly fertilizers made of high-ash brown coal, which cannot be used in the energy field and shortage of coal for burning at thermal power plants, as well as high prices for Russian gas cause demand growth for brown coal. Thus, the increasing demand for energy resources, particularly brown coal, sooner or later we will need to import brown coal from the neighboring countries, or extract it in Ukraine. In the latter case, a more realistic solution to the problem is development of a brown coal deposit in Mokra Kalyhorka, Cherkasy region (developed by the Energy Investment Company Ltd, production and sale of brown coal). Today, the project is about to start burden removing and start extraction works, since all necessary permits have been received. The estimated investment is about EUR 1 million. The amount claimed to the Project is less impressive, but it is more realistic to implement. This Project is a pilot one, and any investor wishing to invest in production and processing of brown coal, may consider all the positives and negatives. The Energy Investment Company welcomes exchange of experience and invites everyone to a round table. In the meantime, we can only wait and see, which of the many presented projects become a reality.