Ukraine may get at least five biomethane plants this year, the head of the Board of the Bioenergy Association of Ukraine (BAU) George Geletukha said.
“The topic of biomethane is developing very positively. Last year we managed to pass the basic bill (¹ 5464 from October 21, 2021). Also, the price of natural gas increased, and now it is more profitable to make biomethane than to let biogas for electricity. Companies are interested in this, and I think that this year we will see at least five biomethane projects,” Geletukha said at a press conference at Interfax-Ukraine on Friday.
He noted that the implementation of such number of projects during the war would be a positive signal and after the war Ukraine will be able to build up to a hundred of such plants per year.
Geletukha specified that already in the nearest February days the first plant with the capacity of 3 million cubic meters of biomethane a year will be launched in Chernihiv region by Hals-Argo company. In addition the company is also supposed to launch a project with a capacity of 10 million cubic meters in the Kiev region.
According to the BAU head, Hals-Argo has five operating biogas plants, which produce electricity, but it is more economical to produce biomethane.
Geletukha added that other companies are implementing three more projects expected this year with a capacity of 3 million cubic meters, 25 million cubic meters and 50 million cubic meters. One of the plants is built from scratch, four are converted to the production of electricity from biogas.
In addition the head of BAU said that today, in particular the European Bank for Reconstruction and Development is ready to consider credits for biomethane projects, in contrast to projects for the production of “green” electricity, as payments for it are unstable by the “Guaranteed Buyer”.
He explained that biomethane producers are not dependent on GarPoca and also have the potential to export it. However, Galetukha called the issue “still debatable.”
“There is now a ban on the export of natural gas, but biomethane is not. Therefore, the Ministry of Energy with regard to biomethane producers promises not to create any problems, but to bring its proposed batches (when they will be) into the quota, which is allowed for export. That is, promises to quota without restrictions,” said the head of the BAU.
At the same time, he noted that European companies are asking the association about the possible export of Ukrainian biomethane, but are waiting “and the first biomethane, and signals from the government, whether it can get to Europe.”
“It will be a positive precedent,” Geletukha summarized.
He added that Ukrainian businesses are more interested in exporting biomethane than selling it domestically, because in Europe they pay the so-called renewability premium, that is, for reducing greenhouse gas emissions.
“There is no such premium inside Ukraine, and it is quite interesting. Europeans are ready to pay it because of the tax on CO2 emissions in the amount of EUR80 per ton. Europeans are ready to buy more expensive biomethane in order not to pay this tax”, – described the situation Geletukha.
As reported, in July 2022 the Regional Gas Company and “Hals Agro” agricultural holding (the owner of LLC “Gorodische-Pustovarovskaya Agrarian Company”) have signed an agreement on connection of the biomethane plant in Chernihiv region to the gas distribution network. Then it was reported that at the beginning of 2023, Ukraine’s first physical connection of the plant’s capacities to the gas distribution networks was being prepared. Apart from the Chernihiv project, WGC announced the second biomethane plant in Vinnytsia region to be connected to the gas distribution networks in the second half of 2023.
In October 2022, RGC, Hals Agro and STX Commodities B.V. of the Netherlands signed a memorandum of cooperation to sell Ukraine’s first biomethane to Europe.
“We are gradually developing our project and are now entering the final stage – planning the sale of biomethane to the EU, which will allow us to work steadily and plan to expand production volumes,” said Hals-Agro director Sergei Kravchuk at the time.
Dionis Biogas Energy LLC (Dionis BGE, Kiev), which launched a new biogas complex with installed capacity of 4.5 MW in mid-February 2022, also announced its interest in biomethane.
