Ukraine prepares to export biogas to Europe

Ukraine prepares to export biogas to Europe
Ukraine wants to get into the biogas business and export hydrogen to Europe. / bne IntelliNews
By bne IntelliNews February 13, 2024

Ukrainian authorities are poised to venture into the burgeoning market of biogas exports to Europe, as the Ukrainian Parliament advances legislation facilitating the customs clearance of biomethane for international trade via gas pipelines.

The procedural draft law, adopted in its first reading, delineates the regulatory framework for customs control and clearance of biomethane transported abroad through pipeline networks, signalling Ukraine's ambitious foray into the green energy sector.

Accompanying documents highlight the proactive stance of Ukrainian companies in harnessing biomethane production capabilities and leveraging existing pipeline infrastructure for export purposes. Over 10 agricultural holdings have set their sights on the burgeoning biomethane market, with plans to establish more than 30 biomethane plants boasting a collective production capacity exceeding 220mn cubic metres annually.

Ukraine already boasts 77 operational biogas plants, collectively yielding up to 260 mcm of fuel annually, a significant portion of which can be refined into nearly 150 mcm of biomethane. Projections suggest that by 2030 Ukraine's annual biomethane production could soar to 1bn cubic metres, underpinning the country's aspirations to emerge as a pivotal player in the global green energy landscape.

Ukrainian President Volodymyr Zelenskiy articulated this vision during the Ukraine Recovery conference during the summer of last year, portraying Ukraine as a potential "hub for modern green energy" in Europe to an audience comprising over 1,000 Western leaders and top European business figures.

Zelenskiy's address resonated with the sentiments echoed in a UN report released the preceding day, advocating for a transition towards renewable energy sources to power 80% of Ukraine's economy by 2050, underscoring the strategic imperative of embracing sustainable energy solutions.

Against the backdrop of ongoing post-conflict recovery deliberations, Zelenskiy advocated for Ukraine to seize the opportunity to pivot towards a greener, more sustainable economic paradigm. Referencing the estimated $411bn worth of damage inflicted by the conflict, Zelenskiy championed a "build back better" ethos, reminiscent of the "Fourth Russia – Green Ukraine" scenario envisioned by bne IntelliNews, which explored the transformative potential of a post-war Europe centred on environmentally conscious reconstruction efforts.