Ukrainian agricultural company Kernel has initiated a program to implement solar energy generation at its industrial facilities. The primary goal of this project is to decrease reliance on external electricity sources, ensure stable operations for grain storage, and lower the carbon footprint of its products.
Currently, Kernel is executing two pilot projects at grain elevators with a combined capacity of 250 kW, costing approximately $140,000. The first project, located in Kirovohrad Oblast, has a capacity of 100 kW, while the second, in Poltava Oblast, has a capacity of 150 kW.
According to Sergey Shcherban, head of the storage department at Kernel, investing in industrial solar energy systems without storage capabilities is one of the most effective tools for optimizing costs, given the current electricity tariffs for commercial consumers.
The expected payback period for the project is up to five years, with the cost of solar-generated electricity being significantly lower than market rates. The electricity generated is currently used to cover technological processes and operational needs at the elevators.
In the coming months, Kernel plans to connect to the grid under an active consumer model, allowing the company to sell excess electricity back to the energy system.
Furthermore, Kernel is considering scaling up the project, with potential locations including other facilities in Poltava and Vinnytsia Oblasts. In the long term, the company is exploring the installation of systems with capacities of up to 550 kW, and on larger sites, up to 3-4 MW.
In addition to the direct economic benefits and risk reduction, this initiative is part of Kernel’s long-term Environmental, Social, and Governance (ESG) strategy aimed at decarbonizing its production processes.
Additionally, it has been reported that the European Bank for Reconstruction and Development (EBRD) has provided Kernel with financing for the first time since the onset of the full-scale war, signing a $45 million loan agreement to support the renewable energy project.
Kernel's solar energy initiative aims to enhance energy independence and sustainability in grain storage operations. The project reflects a broader commitment to decarbonization and has received financial backing from the EBRD.