Mykolaiv Oblast has gained a new processing driver — the multigrain OLVIA oilseed complex, which has launched its first production phase and is preparing for large-scale expansion. The starting configuration includes an 84,700 m³ elevator, a full cycle of primary preparation, and a biomass-fired boiler house that generates process steam from husk. The next step is doubling output, commissioning refining, deodorization, winterization, as well as bottling and outbound warehouses.
Why it matters. Ukraine retains global leadership in sunflower-oil trade, and the South traditionally concentrates a significant share of oilseed processing and logistics. Amid war-related risks and export volatility, local investments in processing and energy self-reliance (bioenergy) enhance the industry’s competitiveness.
Context: the South’s role and Ukraine’s place in the global market
Ukraine is #1 worldwide by share in sunflower-oil trade (40%+ in 2023/24), and demand for processed products remains resilient despite logistical challenges. For Mykolaiv, an agrarian region with a high concentration of oilseed crops, OLVIA’s launch means more value added locally and better throughput stability during peak harvest inflows.
At the same time, in MY 2024/25, sunflower-oil export dynamics fluctuated due to intermittent raw-material tightness and shifting crush between crops (soy/rapeseed). This encourages line and product diversification.
The OLVIA project: what is running now, and what comes next
Phase 1 (commissioned)
- 84,700 m³ elevator with drying and cleaning — buffer capacity and flexible intake.
- Pressing/preparation and solvent extraction — a backbone for steady output of crude oil and meal.
- Storage for meal and husk, oil tanks, and a dedicated substation.
- Biomass boiler house (husk) — steam generation from process by-products, lowering steam costs and the carbon footprint.
Phase 2 (planned)
- Doubling production capacity.
- Additional pressing/preparation and extraction trains; expanded tank farm for oil.
- In-house power generation (resilience and energy independence).
- Refining, deodorization, winterization, bottling, and finished-goods warehouses for B2B/B2C channels.
Long-term track
Deep corn processing → starch for domestic and export markets: diversification into less cyclical niches and broader foreign-exchange (FX) inflows.
Energy efficiency and resilience: bioenergy as an edge
Substituting part of traditional energy carriers with husk (biomass) reduces steam costs and aligns with global decarbonization trends. For an extraction-type plant that is steam-intensive and energy-intensive, this is a margin lever when electricity is expensive. At OLVIA, the biomass boiler is already operating within Phase 1.
Logistics and markets: how OLVIA fits into the chain
Industry communications position the complex as an “important logistics and production center” for southern farmers and traders. In practice, this means shorter inbound legs, faster truck/railcar turns, and more flexible shipping windows (especially once finished-goods warehousing is online in Phase 2). Entry into retail and HoReCa channels (after refining and bottling) opens direct export channels with higher margins.
Control technologies: what’s known and what makes sense to deploy
Open sources do not confirm AI/ML usage at OLVIA today. For a site like this, the best results come from sequenced deployment of a digital control stack:
1) Industrial automation and data
- SCADA + historian: transparency across drying/extraction/storage; lot tracing.
- MES/APS: shift planning, OEE/TEEP, bottleneck and downtime control.
- EAM/CMMS: asset registry, PM calendar, MTBF/MTTR tracking.
2) Advanced Process Control (APC)
- Multivariable control of temperature/moisture/pressure in drying and extraction without oscillations.
- Energy optimization of the biomass boiler (firing regime, steam stability) and coordination with seed-prep processes. APC is standard in energy-intensive industries, improving stability and quality while cutting consumption.
3) AI/ML as a capstone (after stabilizing the base layer)
- Predictive maintenance for critical equipment (presses, extractors, ID fans, dryer blowers): vibration/thermal trends, early anomaly detection.
- Anomaly detection in energy and process streams: heat-exchange degradation, imbalances, air ingress, etc.
- Demand forecasting for seed intake and finished oil (B2B/B2C), inventory optimization, and warehouse slotting.
What it means for the market and the economy
Short term: OLVIA increases buffer storage and crush capacity, supporting price equilibrium at harvest peaks and easing regional logistics bottlenecks.
Medium term: Phase 2 plus own power generation should raise resilience to price/energy shocks and enable export scaling (including bottled oils) — a positive for FX earnings and employment.
Long term: Corn starch extends the portfolio beyond sunflower/soy/rapeseed, reducing commodity-cycle risk and creating higher value added beyond raw commodities for export.
Risks and challenges
- Southern logistics remain sensitive; alternative routes (road/rail → Danube ports/central hubs) are essential.
- Feedstock competition among crops (sunflower vs soy/rapeseed) requires a flexible procurement policy.
- Talent gaps in automation/data: invest in training and HR brand.
Practical steps for OLVIA’s management and partners
- Energy control: biomass-boiler KPIs (kg steam/kg fuel, pressure stability), integration into MES/EAM.
- APC pilot: start with grain drying (heat and moisture control) and extraction (parameter stability).
- PdM pilot: vibro/thermal diagnostics on presses/blowers; target unplanned downtime reduction.
- Phase-2 SKU strategy: B2B/B2C matrix (crude/refined/deodorized/winterized; 0.85–5 L packs), pricing and channels (export/local).
- Internal analytics: OEE, energy, and margin per ton dashboards; scenario planning (feedstock mix).
- ESG/footprint: Scope 1/2 accounting, sustainability certification (EU requirements), storytelling of “husk → steam → oil”.
Outlook: development scenarios
- Base case: Phase 2 goes live → capacity doubles, unit costs stabilize thanks to bioenergy and scale.
- Value-added expansion: refined/deodorized oils and bottling for retail; corn starch opens new markets.
- Tech leader: APC + PdM and data-driven ops → lower energy/ton, higher yield, stronger quality-compliance.
Conclusion
OLVIA is a structural investment in Southern Ukraine’s processing: storage volume + energy independence + scaling in Phase 2. Combined with phased deployment of APC and maintenance analytics, the plant can achieve operational resilience and healthy margins over the long run. For the market, the signal is clear: domestic processing is a pathway to stable FX earnings and new jobs.
FAQ
Q: Is AI/ML already in use at OLVIA?
A: No. Sources confirm automation and bioenergy but do not mention AI/ML. In this article, AI is presented as potential and recommendations.
Q: What will Phase 2 deliver?
A: Doubling output, larger oil storage, in-house power generation, refining/winterization, bottling, and finished-goods warehousing — i.e., a move into higher-value products.
Q: Why a biomass boiler?
A: It provides low-cost steam from processing by-products (husk) and cuts the carbon footprint — a direct advantage in unit costs.
Q: Why mention starch?
A: It’s part of a long-term diversification plan: deep corn processing targets broader export markets.
Q: Is Southern logistics stable?
A: It remains sensitive, so alternative routes (rail/road → Danube ports/central hubs) are critical.