Russia's biofuel industry is new, but it has been developing rapidly in recent years. Russia is one of the largest grain producers, has a well-developed ethyl alcohol industry and has increasing rapeseed (often used to create biodiesel) production rates.[36] The Russian government declared in 2008 that it would play an active role in developing the biofuel industry by building 30 new biofuel plants and providing tax breaks and subsidized interest rates to biofuel energy projects.[37] Although these plans were delayed, on 13 September 2010, Medvedev announced that construction would begin in early 2011.[38] Biobutanol, the biofuel produced by these plants, would be produced from timber by-products, such as woodchips and sawdust.[36][37][39]
Photograph of the Shatura Power Station
Shatura Power Station has the largest peat power capacity in the world
Lada, a Russian car manufacturer, produced its first biofuel-powered automobile in November 2010. Deputy Transportation Minister Valery Okulov stated that Russian companies are currently developing helicopters that run on biofuel.[37] Russia hopes to export biofuel to the European Union;[40] the country's Biotechnology Corporation estimates that Russia is capable of exporting 40 million tons of biofuel annually.[41]