bneGREEN: Over 10 companies planning to build biomethane plants in Ukraine

bneGREEN: Over 10 companies planning to build biomethane plants in Ukraine
Over 10 companies planning to build biomethane plants in Ukraine / bne IntelliNews
By bne IntelliNews May 9, 2023

More than ten companies are seeking to build 36 biomethane plants in Ukraine, the Gas Transmission System of Ukraine (GTSOU) said in a statement on May 8.

 GTSOU is currently considering the development plans for Ukraine's gas transportation system and is ready to provide biomethane transportation services. However, the mechanisms of cross-border trade in biomethane need to be worked out, particularly the removal of barriers for the sale of biomethane transported by the gas transportation system in EU countries, the company said.

To facilitate the export of biomethane, it is essential to unify regulatory requirements for biomethane with those of EU countries and remove internal restrictions, the company said. This involves co-ordinating customs formalities for the registration of biomethane's movement across the border. It is also important to ensure the issuance of guarantees and certificates of origin for biomethane that will be recognised in both domestic and foreign markets.

Furthermore, the industry's development requires the creation of additional financial instruments for cross-border lending. These instruments could be used to cover the producer's costs for network connection either partially or fully.

Biomethane is produced from biodegradable waste, agricultural residues and energy crops. Ukraine currently has a gas deficit, producing around 20bn cubic metres a year, but demand is around 35 bcm.

Ukraine has embraced the transition to green energy as part of a drive to wean itself off Russian gas imports. Before the war it managed to attract some $5bn in wind and solar power projects, but biomethane is a more recent development.

In parallel to attracting investors, Ukraine is preparing the legislative foundation for the green energy business. 

According to a press release by the Regional Gas Company (RGC) on Monday, the state-owned enterprise Ukrainian Research and Training Centre for Standardisation, Certification, and Quality Problems has implemented the state standard for injecting biomethane into distribution and trunk gas networks. The standard is based on the EU standard and aims to unify biomethane quality requirements with those of European countries.

This move is an important step towards creating a supportive environment for exporting biomethane to European countries and integrating gas markets further. The RGC emphasises the significance of unifying biomethane quality requirements with the European standard to facilitate the export of biomethane and expand the biomethane industry in Ukraine.

"The standard is nationwide in Ukraine, that is, all network operators can use it in their work. It is important from the point of view of market development and technical improvement of procedures and regulations, which has always been one of the key goals of the RGC as a production and technology company," the RGC said.

"Biomethane is a sustainable decarbonised type of energy, and Ukraine, being at the beginning of market development, should lay the foundation for development in line with the accepted EU standards," the RGC added.