RECOMMENDATIONS FOR INTEGRATING BIOFUELS INTO RURAL DEVELOPMENT AND CREATING COMPETITIVE ADVANTAGES FOR AGRICULTURAL PRODUCERS

Abstract

The article substantiates theoretical and applied recommendations for integrating biofuel technologies into the development of rural areas and enhancing the competitiveness of agricultural producers in Ukraine. The relevance of the study is determined by the growing energy deficit of territorial communities caused by military aggression, the destruction of critical infrastructure, and the need to comply with the objectives of the European Green Deal related to decarbonization and sustainable development.

The research identifies bioenergy as a strategic driver of rural revitalization, emphasizing the transformation of agricultural biomass from waste into a high-value energy resource. Particular attention is paid to the “zero-waste biorefinery” model, which ensures closed-loop processing of biomass through the production of biogas, biomethane, solid biofuels, and the utilization of digestate as an organic fertilizer. This approach contributes to reducing dependence on imported energy carriers, lowering production costs, and improving soil fertility in accordance with the principles of the circular economy.

The article analyzes the current structure of renewable energy generation in Ukraine and highlights the dominance of solar power, which limits system stability and increases vulnerability to external shocks. In this context, the decentralization of energy systems through local bioenergy clusters, microgrids, and energy cooperatives is justified as a priority direction for strengthening energy security at the community level.

The socio-economic effects of biofuel integration are also examined. It is proven that bioenergy projects create permanent jobs, mitigate seasonal unemployment in rural areas, stabilize demographic trends, and support local budgets. The study additionally emphasizes the importance of institutional support, including simplified access to energy networks, green public procurement mechanisms, and the implementation of digital carbon monitoring systems (IoT) in line with EU RED II and CBAM requirements.

The findings confirm that the integration of biofuels should be considered not only as a technological upgrade of the energy sector but as a comprehensive strategy for sustainable rural development, post-war recovery, and the long-term competitiveness of Ukraine’s agro-industrial complex.