The head of the Bioenergy Association of Ukraine, Heorhiy Heletukha, predicts that Ukraine can get at least 5 biomethane plants this year, reports Energy reform.
“The topic of biomethane is developing very positively. Last year, they had time to adopt the basic bill (provision No. 5464 of October 21, 2021), the price of natural gas also increased, and now it is more profitable to make biomethane than to use biogas for electricity. Companies are interested in this, and I think that this year we will see at least five biomethane projects,” Geletukha said during a press conference at the Interfax-Ukraine agency on February 10.
He noted that the implementation of such a number of projects during the war will be a very positive indicator, and after the war Ukraine will be able to build up to a hundred such factories per year.
Heletukha specified that the first plant with a capacity of 3 million cubic m of biomethane per year will be put into operation in the near future in February by the company “Hals-Argo” in the Chernihiv region.
In addition, according to him, it should also launch a project with a capacity of 10 million cubic meters. m in the Kyiv region. As the head of BAU explained, the company has 5 operating biogas plants that produce electricity, but it is economically more profitable to produce biomethane.
Three more projects expected this year with a capacity of 3 million cubic meters, 25 million cubic meters. m and 50 million cubic meters. m are developed by other companies. Geletukha added that one of the plants was built from scratch, and four were converted to produce electricity from biogas.
In addition, the head of BAU noted that today, in particular, the EBRD is ready to consider loans for biomethane projects, as opposed to projects for the production of green electricity, since payments for it are unstable from the “Guaranteed Buyer”.
According to him, biomethane producers do not depend on GarPok, and also have the potential to export it. At the same time, he called this issue “still debatable”.
“There is currently a ban on the export of natural gas, but biomethane is not. Therefore, the Ministry of Energy promises not to create any problems for biomethane producers, but to include the proposed batches of biomethane, when they become available, in the quota allowed for export. That is, he promises to quote without restrictions,” explained the head of BAU.
At the same time, he noted that European companies are contacting the association with inquiries regarding the possible export of Ukrainian biomethane, but they are waiting for “both the first biomethane and signals from the government as to whether it will be able to reach Europe.”
“This will be a positive precedent,” Geletukha summed up.
He added that exporting biomethane is more interesting for Ukrainian business than selling it on the domestic market, because in Europe they pay a so-called premium for renewable energy, that is, for reducing greenhouse gas emissions.
“There is no such award in Ukraine, but it is quite interesting. The willingness of Europeans to pay it is related to the tax on CO2 emissions in the amount of 80 euros per ton. Europeans are ready to buy more expensive biomethane in order not to pay this tax,” Geletukha described the situation.
We will remind you that in July 2022, the Regional Gas Company and the agricultural holding “Hals Agro” (the owner of the “Horodishche-Pustorivska Agrarian Company” LLC) concluded an agreement on the connection of the biomethane plant in the Chernihiv region to the gas distribution networks. At that time, it was reported that at the beginning of 2023, preparations were being made for the first physical connection of the plant’s capacities to gas distribution networks in Ukraine. In addition to the Chernihiv project, RGK announced the connection to gas distribution networks of a second biomethane plant in the Vinnytsia region in the second half of 2023.
In October 2022, RGK, Hals Agro and the Dutch STX Commodities BV signed a memorandum of cooperation with the aim of selling Ukraine’s first biomethane to Europe.
“We are gradually developing our project and now we are entering the final stage – planning the sale of biomethane in the EU, which will allow us to work stably and plan the expansion of production volumes,” said Serhiy Kravchuk, director of Hals-Agro at the time.
“Dionis Biogas Energy” LLC (“Dionis BGE”, Kyiv), which launched a new biogas complex with an installed capacity of 4.5 MW in mid-February 2022, also expressed interest in biomethane.
