The IFC board of directors approved the project on September 21, according to the IFC's website.
The company already operates two biogas plants that process manure from its farms into green energy, the statement said. As part of its decarbonization strategy, MHP Group plans to increase biomethane production by modernizing and expanding its biogas plants in several stages.
The overall cost of the project is $52 million, part of which MHP expects to finance with its own funds. The project is also expected to get guarantees for $15 million from the European Fund for Sustainable Development Plus, the United Kingdom and other donors.
The 12 MW biogas plant in Vinnytsia region was put into operation in 2019 and is the largest in Ukraine. The first stage of the project involves modernizing existing facilities in order to produce 14,000 tonnes of liquefied methane per year and the second involves expanding capacity to 20.5 MW.
MHP is Ukraine's largest chicken producer and also makes processed meat products, grows grains and produces sunflower oil. MHP's founder, majority shareholder and CEO is Ukrainian businessman Yuriy Kosiuk.