Strategic guidelines for the development of bioenergy potential of agricultural enterprises in the transition to a circular economy

Abstract

Given the limited volume of natural resources and the trend towards population growth, the existing linear model of take-use-recycling economy needs rethinking. The idea that underlies the circular model of the economy, according to which goods of today are to become resources of tomorrow, is becoming increasingly relevant. Under these conditions, the agricultural sector must, first of all, ensuring food security, intensify the production of biomass as a renewable source of energy, since bioresources and biomass make up the highest share in agriculture. The article summarizes and proposes the strategic goals and guidelines for the development of the bioenergy component of agriculture. In Ukraine, a significant amount of biomass is produced annually, which is not used efficiently. Instead of addressing the needs of the energy sector, the lion’s share of waste is recovered through incineration, which in itself causes significant damage to the environment in general and the economy in particular. It has been researched that the potential of bioenergy largely depends on the geographical distribution and availability of existing waste and by-products on the one hand, and on the overall strategic orientations of the sector’s development on the other. The article analyzes the strategic goals of the rational use of agricultural waste for bioenergy production, which would certainly be economically viable and contribute to the sustainable development of the state’s economy. Strategic guidelines that are formulated in terms of the requirements and constraints of the circular economy are also offered. They are: 1) Use biomass that is obtained only on the basis of the principle of sustainability; 2) Promote the use of research, development and innovation at various stages; 3) Adhere to the principles of optimal use of bioresources; 4) Transformation of business models of players in the bioenergy market. Successful implementation of the circular business model in the agricultural sector must take into account the interests of all market participants, based on the principle of sustainable development. At the stage of transformation from a linear to a circular economy, the agricultural sector needs to change its existing business models in order to increase its innovation component, improve its logistics processes, develop a strategy for realizing its existing bioenergy potential and sustainable economic development in general. It should be understood that the benefits expected from the bioenergy sector are only possible in the long run.