Opportunities for Developing the Biofuel Market in Armenia Discussed in Government

The Government of Armenia has announced that a consultation on the development of the biofuel market in Armenia was held today under the leadership of Prime Minister Nikol Pashinyan.

Opening the discussion, the Prime Minister noted, “We have been working on this topic for quite a while and have studied existing practices worldwide, particularly in our region. We have sent working groups to at least one country where biofuel is widely used in domestic settings, especially for heating purposes. It is in the context of these discussions that I was, at least surprisingly, informed that this practice is also quite common in Europe, meaning developed countries, including those that are part of the G7.”

“To clarify what this is about, the heating boilers that we are already familiar with or those that meet similar parameters are being used not only with natural gas or liquid fuels but also with biofuels. In this case, by biofuel, we refer to briquettes and pellets. Of course, there are other methods for using pellets and briquettes, and today we will try to understand what conclusions we have reached and how feasible we consider the application of this method in Armenia to be. Mainly, when we talk about the feasibility of the method, we mean its market competitiveness compared to the other methods we currently have. In any case, if it becomes clear that today boilers operating on gas and used for heating purposes can also be utilized in this way, and this option will be at least as affordable for our citizens as the existing ones, it will be quite interesting news for us,” he added.

Environmental Minister Erik Grigoryan addressed the preliminary work done to explore the prospects for developing the biofuel market in Armenia. He presented a comparative analysis of the technologies for producing biofuels, particularly briquette and pellet fuels, their main advantages, cost/energy yield ratios, compatibility/replacement with other types of fuels, and the required raw material reserves for production.

According to the Minister, the development of the biofuel market could be a significant change in terms of implementing modern technologies for the development of civilized heating systems, reducing illegal logging and fires in forested areas, ensuring the heating needs of the population, creating jobs, and enhancing energy security. He noted that a comprehensive study of the feasibility and financial assessment of the project will be presented in the coming months.

During the consultation, the discussion covered the applicability of briquettes and pellets in Armenia, the possibilities of establishing a producer-consumer working chain, various profitable business models, state involvement mechanisms, and other issues. The Prime Minister instructed the heads of the relevant agencies to prepare a package of proposals regarding the discussed issues as part of their further actions and to present them along with a comprehensive evaluation of the project.