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Executive Summary

The Russian government has outlined as a national objective the goal of Russia becoming 40 percent more energy-efficiency by 2020. While there have been previous attempts at the federal level to promote the production of biofuels, there are also a small but increasing number of activities at the regional level. The number of innovative projects aimed at production of alternative energies has increased in the past years, such as those from plant cellulose (including wood or oilseeds) and agricultural wastes, along with production of biofuel raw materials for export (including fuel pellets, rapeseeds, and rapeseed oil). The emerging Russian biofuels industry’s export orientation is driven by continued growing demand from Europe and Asia. However, the production of biofuels still remains small and has almost no impact on Russia’s overall domestic grain and oilseed prices.

Due to its abundance of petroleum and natural gas, Russia produces a small amount of biofuels and has minimal domestic demand. According to experts, Russian biofuel production will not be fully developed in the next 10 years, as the sector is not considered as a national priority. Different sources estimate that renewable energies, including biofuel, represent 1.2 percent of Russia’s total energy production, with biomass consisting 0.5 percent. While there are no official statistics that measure what share of total energy production biofuels account for, it is estimated that biofuels make up 5 percent of Russia’s heating energy and 1 percent of its electrical power.

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