WORLD EXPERIENCE IN ANALYSIS OF INVESTMENT ATTRACTIVENESS OF BIOFUEL PRODUCTION

Abstract

Biofuels are considered an important component of energy security, especially for countries with limited fossil fuel reserves. Global demand for biofuels is growing, making their production a promising industry for investment. Investors are looking for sectors with high potential for profitability and growth. A study of global experience allows us to identify successful business models that increase confidence in the biofuel sector. This is especially important for countries seeking to attract foreign investment in innovative energy sectors, which Ukraine will become in the post-war period. Research into the investment attractiveness of biofuel production based on global experience is relevant for the formation of effective strategies for energy transition, attracting investment, supporting innovation, and achieving environmental goals on a global scale. This allows us to combine economic development with the principles of sustainable use of natural resources. The reviewed works of foreign authors cover both theoretical aspects of investment analysis and examples of its application in various industries, such as energy, social sphere, transport, housing, finance, ecology and healthcare. These studies used various analysis methods, including: benefit-cost analysis, sensitivity, break-even, scenarios, assessment of project sustainability, discounted cash flows, forecasting, as well as regression and factor analysis. Such methods can be successfully used in Ukraine to evaluate projects in various areas to determine both approximate and exact indicators of investment efficiency. So, when evaluating an investment project related to biofuel production, the analysis methodology may be as follows: 1. Conduct an analysis of the main financial indicators (NPV, IRR, ROI); 2. Evaluate competitors and the domestic biofuel market; 3. Perform an environmental assessment of the project; 4. Consider different scenarios (sensitivity to raw material prices); 5. Develop a risk management strategy. The established methodology for assessing the investment attractiveness of a project in the field of development and use of biofuels is a key stage in attracting financing and making a decision on its implementation. The use of such a methodology will provide a comprehensive approach to assessing the investment attractiveness of a project in the field of biofuels, reducing risks and increasing investor confidence. Constant analysis of international experience and its adaptation to the specifics of economic activity in Ukraine will help Ukrainian enterprises effectively attract investments and introduce innovations.