In modern conditions of economic globalization, strengthening market relations and aggravated competition, the economic development of an enterprise directly depends on the introduction of innovations. The transition to an innovative path of development requires the enterprise to determine its readiness and assess the possibility of development and the further implementation of innovations. Modern trends in the production of conventional liquid fuels in Ukraine, in particular, analysis of the production of motor gasoline and primary oil refining in Ukraine, the share of motor gasoline produced in Ukraine in the total volume of gasoline used, the volume of bioethanol production by Ukrainian distillery factories have been analyzed in the article. An assessment of the resource production potential for the production of bioethanol in Ukraine has been carried out. Possibilities of bioethanol production in Ukraine at distilleries have been investigated. An analysis of molasses production in Ukraine and theoretically possible volumes of bioethanol production from molasses in Ukraine have been calculated. The scheme of key strategic priorities for the development of the food ethanol and bioethanol in Ukraine has been proposed. The advantages of using bioethanol in the gasoline-ethanol blends for vehicles have been noted, a SWOT analysis map for organizing the production of bioethanol at sugar beet processing plant and distilleries has been generated. The needs of Ukraine in the production of bioethanol have been calculated and, according to the results obtained, the volumes of bioethanol production have been predicted.

Ukraine’s commitments under the international framework agreements to reduce CO ₂ emissions and the Global Climate Change Initiative provide the basis for the implementation of bioeconomy mechanisms in the country’s Energy Development Strategy until 2035. One of the goals of this strategy is to reduce the consumption of fossil fuels and switch to alternative fuels. The agriculture of Ukraine is assigned the leading role in ensuring the replacement of fossil fuels with biomass of plant origin. The bioenergy potential of the agro-industrial sector of the economy requires extensive research in order to determine and integrate it into the country’s energy sector. The essential characteristics of energy efficiency in the context of the cluster model of organizing the activities of enterprises for the production of biofuel as stable interactions of geographically concentrated economic entities are investigated in this article. Peculiarities of introduction of bioenergy clusters as stable interactions of geographically concentrated business entities (enterprises, suppliers and organizations, including scientific institutions, etc.) have been determined according to a pre-defined and agreed development strategy for all participants without exception at the stage of formation of which the competitive environment is supported taking into account the energy, ecological and socio-economic parameters of the sustainable development of territories. A model of a territorial bioenergy cluster for the production of biofuels from crops and waste was formed and the advantages of creating bioenergy clusters were analyzed. Furthermore, a matrix of a PEST analysis of the formation of bioenergy clusters in Ukraine was formed.

The global biofuel industry is characterized by a wide range of legislative and regulatory measures for the development of bioenergy. In order to stimulate the production of biofuels, a set of measures has been developed, including legislative regulation, indicative planning of production volumes, preferential taxation and budget support. Ukraine is among the top ten largest consuming countries of energy resources. Weak and inconsistent state policy in the sphere of biofuels as well as inconsistent legislative provisions regulating activities in the field of production, circulation and use of biofuels, impede the effective development of the biofuel market in Ukraine. The purpose of this article is to determine the components of the system of state regulation of bioenergy and to identify effective mechanisms with regard to improving the legal regulation of the biofuel market in Ukraine. The management processes discussed in this article are provided by several methods, which particularly relate to the functioning of power structures and the end results or goals of the public administration system. Currently, there are significant inconsistencies in the formation and further functioning of the regulatory framework with the legislation of the European Union on the rational use of fuel and energy resources, the limitations of which increase due to inconsistencies between centralized and regional distribution. Therefore, further processes of effective economic development of Ukraine will largely depend on solving the problem of the sustainable provision of available renewable energy resources. Future development of the biofuels market in Ukraine will strongly depend on the institutional and legal conditions in the field of production, circulation and use of biofuels.

The development of the modern economic system is becoming increasingly dependent on the sufficient provision of quality energy resources due to the intensification and transformation of the mechanization and automation of all industries. The growth of the energy needs of society is parallel to the awareness of the need to ensure the environmentally friendly development of society. There are a number of reasons for the search for new energy sources, including the limited reserves of traditional sources, dependence on oil-exporting countries, the greenhouse effect due to the entry of carbon dioxide into the atmosphere and air pollution by harmful gases. The biofuel sector offers the potential for both the development of national agriculture and for increasing its energy independence. Global trends in the rapid development of bioenergy in combination with the systemic crisis of the energy sector in Ukraine have necessitated a detailed study on the possibility of increasing the yield of biofuels from crops. The economic and mathematical modeling of the possibility of increasing the yield of bioethanol and vegetable oil from agricultural crops has been carried out. An economic optimization model has been formed, which made it possible to study an increase in the yield of bioethanol from sugar-containing and starch-containing crops and vegetable oil from oil crops from 1 ton per 1 hectare of area. Also, an assessment of the lost yield for the investigated crops has been carried out using the method of analysis of the functioning environment (Farrell’s method).