RLF - Energy RTB 2 solar

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Up to USD 45 million (EUR 38 million equivalent) senior secured loan to Energy RTB 2 LLC, a subsidiary of Kernel Group. The project is expected to be co-financed by an up to USD 10 million parallel loan.

The Project is expected to benefit from a partial first loss risk cover from the European Union via the Ukraine Investment Framework (UIF). The framework contributes to the green transition of Ukraine economy by supporting sustainable investments in green city infrastructure, greening logistics chains, energy efficiency and green technology transfers in industrial processes, commercial operations, and buildings. The framework also supports companies directly affected by the military conflict, to ensure a fast recovery and resilience from the ongoing war.

Project ID 56463

Status Passed Final Review, Pending Approval

Location

Ukraine

Industry Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Michael Iavorskyi, IR Manager
ir@kernel.lu
https://www.kernel.ua/
3, Tarasa Shevchenka Lane, 01001, Kyiv, Ukraine

Project ID 56463

Status Passed Final Review, Pending Approval

Location

Ukraine

Industry Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

09 Apr 2026

Disclosure date

01 Apr 2026

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Project Objectives

The proceeds will be used to finance the construction of a 106MW solar park and the installation of battery energy storage system in Ukraine (the "Project").

Transition Impact

ETI score: 70

Under Inclusive primary quality, the Project will enable the Group to broaden its human capital recovery initiatives towards disabled workers, young labour market entrants and students.

Under Green secondary quality, the Project will support the commissioning of a solar park with total capacity of 106 MW of electricity.

Client Information

ENERGY RTB 2 LLC

Kernel Group is a leading Ukrainian vertically-integrated agribusiness group, engaged in oilseed crushing, grain trading, crop farming, transhipment and silo services. The loan will be provided to Energy RTB 2 LLC, a subsidiary of Kernel Group in Ukraine.

EBRD Finance Summary

USD 45,000,000.00

Total Project Cost

USD 86,000,000.00

Additionality

Terms: As a result of the war on Ukraine, the market for liquidity financing in Ukraine is limited. EBRD financing fills a critical market gap by providing long-term funding with a tenor and on terms commensurate with the project requirements to alleviate Ukraine's severe energy deficit.

EBRD attributes: The EBRD's lead may allow Kernel to attract other lenders and mobilise additional funding for the Project.

Standard-setting: The EBRD's engagement is expected to help Kernel attract, retain and support more working parents (particularly mothers) into its workforce by developing and delivering enhanced childcare and care-economy solutions in line with the EBRD's established Gender SMART approach.

Environmental and Social Summary

Category B (ESP 2024). The Environmental and Social Due Diligence (ESDD) for the Project was undertaken by an independent E&S consultant and included a review of available information, interviews with the Group's representatives, a site visit, an E&S audit to assess the Group's management capacity and systems, and an analysis of the potential E&S impacts and benefits associated with the Project. The ESDD confirmed that potential E&S impacts are expected to be site-specific and readily addressed through mitigation measures, and that the Group has the capacity to meet the EBRD's E&S requirements.

The Project involves the installation of a 106 MW solar power plant in the southern Ukraine, including the construction of a transmission line and connection to an existing 330 kV substation. The transmission line connecting the PV site to the grid will operate at 110 kV and have a total length of approximately 3 km.

Since the Project is currently at the development stage, the procedure for national EIA has not yet been initiated. The construction of a solar power plant (SPP) itself does not fall under the scope of mandatory environmental impact assessment procedures as defined by the law and it will be further clarified with regulatory authorities. Relevant requirements have been included into the Environmental and Social Action Plan (ESAP).

The Project site consists of open steppe terrain with meadow vegetation and scattered shrubs. The ESDD did not identify any contamination risks from previous land use. No biodiversity or cultural heritage sensitivities were identified that would impede development. Both the PV site and the transmission line route are located entirely outside areas of conservation interest. The PV Project area does not fall within any territories that are part of the Emerald Network or candidates for inclusion in it. The nearest protected area is located approximately 6 km away. The closest Ramsar site is located 20 km away, it is also the closest Key Biodiversity Area. The Project site does not fall within or directly threaten any protected areas or internationally recognised areas.

Biodiversity surveys confirmed that the land allocated for the Project consists primarily of low productivity grazed pasture, likely due to soil conditions. No flora species of conservation concern were found within the Project footprint. No habitats of high conservation value or species under national or international protection frameworks were recorded.

The only potential priority concern relates to the possible presence of Spalax sp., a burrowing rodent group that includes species listed as vulnerable. ESAP requires to conduct a targeted biodiversity survey to confirm the presence or absence of Spalax sp. on the SPP site prior to any site clearance or construction activities. Should the species be confirmed, species-specific mitigation measures will be prepared and implemented. The survey findings and any required mitigation measures will be integrated into construction planning to avoid habitat disturbance and will be aligned with the vegetation management plan. In addition, ESAP requires biodiversity-related awareness training during worker induction to support the effective implementation of mitigation measures on site. A review of the Group's corporate management system showed that it has a well-established and certified integrated EHS management system (ISO 9001/14001/45001) and sufficient capacity to implement the Project in line with EBRD requirements. Kernel will be required to extend its management system to the new Project facilities and cover both construction and operational phases of the solar power plant.

The land allocated for the construction and operation of the solar power plant is leased through commercial negotiation and formal lease agreements for a period of 25 years. It is located outside the boundaries of the nearest settlements and has not been used by the residents for agricultural or livelihood purposes. As a result, no physical or economic displacement has occurred.

Land allocation was carried out through a transparent process, including public consultations and hearings, during which no objections were raised regarding land use rights or potential displacement. The land lease and its intended use comply fully with Ukrainian legislation and local planning regulations, including urban planning conditions and restrictions. Furthermore, no evidence was found of land use by vulnerable or marginalised groups, and no customary or informal land rights were identified during the stakeholder engagement process. The planned transmission line route will run along existing local access roads and will be subject to easement and/or servitude agreements with affected owners and users. Transmission lines will be constructed, operated, and maintained by the Transmission System Operator (TSO) under the Agreement on Connecting Electrical Installations Intended for Electricity Generation to the Transmission System.

Kernel does not have a single, standalone Supply Chain Management Policy; instead, its supply chain requirements are embedded across several high-level corporate documents. The Group has acknowledged this gap and proposed Project specific measures to address it. The procurement process has a strong legal and contractual basis for enforcing E&S standards. Labour risks associated with the supply chain for solar components have been addressed in accordance with the Management Approach for Solar Supply Chain Risk Management, and appropriate controls have been implemented. The final selection of the solar PV supplier has not yet been done and relevant ESAP requirements on the client's responsibility in obtaining the Bank's no objection of the final Bill of Materials (BoM) is clearly incorporated with the timeframe linked to prior procurement.

Kernel's human capital management is guided by its Corporate Code and is fully aligned with the Labour Code of Ukraine, the ILO Fundamental Conventions, and the principles of the UN Global Compact. Compliance with social legislation is supported by a robust set of internal policies.

The Project will be built by an EPC contractor, which has yet to be selected and contracted. The EPC contractor will be required to prepare its own Health, Safety & Environment (HSE) Management Plan and cascade it to its subcontractors. The contractor must also mobilise an HSE Manager responsible for implementation. In the current context of the ongoing war, the Project labour might include migrant workers and IDP reaching a pick at construction of ca. 300 people. Kernel will have an oversight during all phases of Project implementation and worker grievance mechanism will be in place covering all contractors present on site. These requirements have been included in the Environmental and Social Action Plan (ESAP) and agreed with the Group.

Public engagement to date has consisted of public hearings where residents formally approved allocating the land for the SPP in 2017, followed by 2024-2025 municipal council sessions confirming the land leases, and targeted meetings during the 2025 ESDD site visit with local authorities, residents, and informal land users. All questions raised during the consultations were addressed, and the outcome of the public hearing was approval of the land allocation for the construction and operation of the solar power plant. A Stakeholder Engagement Plan (SEP) and a Non-Technical Summary (NTS) have been developed and will be made available to the local community. A redacted version of the SEP and NTS will be disclosed together with the PSD on the EBRD website. An Environmental and Social Action Plan (ESAP) has been developed and agreed with the Group. Key ESAP actions include the development of construction and operational ESMPs; requiring contractors to prepare a construction HSE plan; implementation of a worker grievance mechanism; and implementation of the SEP and a public grievance mechanism.

The Bank will monitor the Group's E&S performance and implementation of the ESAP through annual E&S reports and site visits as necessary.

Green assessments

The Project is aligned with the mitigation goals of the Paris Agreement as it features on the joint-MDB aligned list under "generation of renewable energy with negligible lifecycle GHG emissions". The Project is aligned with the adaptation goals of the Paris Agreement and all material physical climate risk have been addressed.

100% of the EBRD financing is classified as green finance, as it supports capital expenditures related to the construction and operation of a 106 MW solar power plant. The attribution is made in line with the methodology to determine the green finance attribution of EBRD investments under green use of proceeds section.

Technical Cooperation and Grant Financing

TC: Technical and Environmental and Social due diligence costs were partially covered by donor funding.

Non-TC: Human Capital Investment Incentive Grant support in an amount of up to EUR 500,000 (source of funding to be defined).

Company Contact Information

Michael Iavorskyi, IR Manager
ir@kernel.lu
https://www.kernel.ua/
3, Tarasa Shevchenka Lane, 01001, Kyiv, Ukraine

PSD Last Updated

01 Apr 2026

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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RLF - Energy RTB 2 solar

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Green assessments

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)