Strategy for the Development of Bioenergy Based on Agriculture: Case for Ukraine

Abstract

The development of biofuel engineering on the basis of agriculture is one of the main strategic directions of the use of alternative power sources. Renewable power engineering on the basis of agriculture serves as the ground for development of agricultural territories, agricultural diversification, technological equipment and innovative development of the branch and securing power independence of the country. The article analyses main trends of biofuel engineering development in Ukraine. We have built a forecast of change development pace of biofuel production in Ukraine up to 2025. We have conducted complex PEST-analysis of long-term benefits of biofuel engineering market in Ukraine. We have substantiated main tendencies of strategic changes in the branch within the limits of the most influential outer impact factors related to the development of renewable power engineering. We have conducted analysis by separating the factors that have positive and negative effect on the process under study. We have offered a complex of strategic activities within the limits of the most influential environmental factors. We have designed a development strategy for biofuel engineering on the basis of agriculture (hosing kanri method). It is based on the implementation of Deming Cycle and presents the concept of cycle management. On the basis of developed strategy we have outlined main strategic targets, processes and results. Among primary strategic targets we have singled out the following: the improvement of economic and law mechanism of state policy of the development of biofuel engineering; the increase of the volumes of attracting domestic and foreign investments; the implementation of innovative biofuel engineering technologies in industry; raising social awareness level for business and population. In order to optimize the implementation of the strategy development we have established correlation connections between the elements of the strategy. We have outlined the margin of biofuel engineering development at agricultural enterprises according to blue ocean strategy. The results obtained serve as the ground for further investigations of biofuel engineering development on the basis of agriculture.