Ukraine is creating conditions for biomethane market, taking into account national tasks on energy security, decarbonization and cooperation with the EU

Created date

12 09 2022

The State Energy Efficiency Agency of Ukraine together with the largest energy community "Energy Club" has brought together experts from Ukraine and various EU countries at the international discussion on the most effective ways of creating the biomethane market.

The development of biomethane production is gaining more and more priority for both Ukraine and the EU in the context of the global energy crisis caused by russian energy terror.

"In Ukraine, certain steps have already been made to create a biomethane market. About a year ago, the Parliament adopted the Law of Ukraine, which actually laid legislative basement for biomethane production in Ukraine. The Government has approved the procedure for functioning of the biomethane registry, according to which the Agency is responsible for creating the guarantees of origin mechanism ", said the Head of the State Energy Efficiency Agency of Ukraine Valeriy Bezus, opening the discussion.

"We are developing a single platform of guarantees of origin registries in Ukraine, including the registry for biomethane origin. We are working in close cooperation with European partners, including ERGaR. Therefore, as a result of such communication we hope to get an effective mechanism that will meet the EU standard," said the Head.

At the same time, the actual launch of the biomethane market depends on many other factors, the Head noted.

Given the situation of gas prices and resource potential, it is necessary to prepare investment projects on biomethane production today.

"In the conditions of the energy crisis, biomethane can compete with fossil gas. Currently, about 30 potential biomethane producers have already applied to the operator of the gas transportation system to obtain technical conditions for connection to the gas network," said Olena Lenska, Director of the Renewable Energy Development Department at the State Energy Efficiency Agency of Ukraine.

The development of the biomethane market in Ukraine will allow not only to reduce dependence on the import of fossil energy resources, but also to open the export of biomethane to the EU.

The action plan to connect producers to the network has already been prepared by the Operator of the GTS of Ukraine. Biomethane trade and export scenarios are also being explored.

"I am convinced that our victory in the war will make it possible to develop this direction at the fastest pace," Valeriy Bezus emphasized.

"The prospects for biomethane are significant. A decade of biomethane is expected in the EU. Its production should increase 10 times by 2030. The development of this direction is defined in various strategic documents, in particular: EU Green Deal, Fit for 55. In the "REPowerEU" plan, the European Union, among other things, drew attention to the need to establish a partnership with Ukraine and emphasized its role in the development of the European biomethane market," explained Karolina Cegir –  Senior Gas Expert at the Energy Community Secretariat.

"The production of biomethane can contribute to ensuring the energy security of the EU by replacing 10% of the gas demand", confirmed Giulia Cancian – Secretary General at the European Biogas Association.

"Today, only 3 billion m3 of biomethane is produced in the EU. The goal is to increase this volume to 35 billion m3 of biomethane in 2030. For this, it is important to ensure constant access to raw materials. Additional investments in the amount of 83 billion euros are also needed," added Giulia Cancian.

Different instruments are used to stimulate biomethane production in different countries: tax benefits for investors, acceleration of the issuance of permits, incentives for agricultural enterprises, support for producers of biomethane for transport, programs of international financial organizations, funds, etc.

Also representatives of the European Renewable Gas Registry (ERGaR), the German Energy Agency (dena), the Austrian Biomethane Registry AGCS, the Association of Energy Engineers of Spain, "Biogass Norge" (Norway), "Landwärme GmbH" and "Agriportance GmbH" (Germany), "Bureau Veritas Certification", Bioenergy Association of Ukraine discussed market development, the most important factors and barriers, the functioning of registries, certification, support programs and plans.

In general, the participants confirmed: the production and use of biomethane in different countries will only expand. Ukraine has the potential to become a serious partner of the EU in this direction in the future. After all, for both parties, biomethane is one of the means of reducing energy dependence, as well as a means for decarbonization and the development of a circular economy.

Communication and PR Department