Ukraine issues first-ever license for biodiesel production

On May 15, 2025, Kilhan Farm (private farm “Kilhan I.S.”) in Lviv region received Ukraine’s first-ever license for biodiesel production, the farm’s owner Ivan Kilhan told Latifundist.com.

The next goal is to export a test batch of biofuel to the EU in the coming days. The company has already passed an international audit to enable this.

“I submitted around 300 documents to obtain the country’s first fuel production license. I had to secure a commissioning certificate for the biodiesel plant from the State Inspectorate for Architecture and Urban Planning of Ukraine, which required an environmental impact assessment and dozens of other documents. Now I have confirmation that the land is designated for industrial use and all facilities meet both Ukrainian DSTU and international standards,” Kilhan said.

He emphasized that there are currently no other licensed biodiesel plants operating in Ukraine. Producing fuel without a license is punishable by imprisonment, fines, and property confiscation. The complicated licensing procedure and legal responsibility for biodiesel as an excise-duty product discourage most farmers from entering the sector.

Ukraine also lacks supporting infrastructure. For example, there is still no laboratory capable of certifying biodiesel batches for export under the EN 14214 standard or for domestic sales.