Biomethane production in Ukraine has been suspended due to economic impracticability

Hals Agro, one of the leading producers of biomethane in Ukraine, has currently suspended production of the product due to its unprofitability. This was announced by the head of alternative energy sector of Hals Agro Oleg Ryabov.

According to him, the cost of biomethane production in Ukraine is at best over 600 euros per 1,000 m³, and usually in the range of 800-900 euros per 1,000 m³, while natural gas costs approximately 350 euros for a similar volume. In such conditions, he noted, the company stopped the production of biomethane due to economic impracticality, and the cogeneration plant, which cleans the biogas produced there to the level of biomethane, was stopped at the plant. It makes no sense to produce biomethane for the internal needs of the agricultural holding, even with the availability of free biomass. In the current conditions, it is much more profitable to use fossil energy carriers.

Currently, the annual production capacity of biomethane in Ukraine is 6 million m³ - 3 million m³ at the Hals Agro holding plant in the Chernihiv region and 3 million m³ at the Vitagro holding in the Khmelnytsky region.

As previously reported, a biofuel exchange is being created in Ukraine, and for this the Government calls on business and farmers to increase the share of alternative fuels on the market. The memorandum on cooperation has already been signed by the State Agency for Energy Efficiency and Energy Saving and the Ukrainian Energy Exchange. Currently, the priority is to create a transparent and competitive biofuel market.

According to Kostyantyn Shevchuk, deputy general director of the Ukrainian Energy Exchange LLC, bioenergy is one of the strategic directions for replacing natural gas. However, for the development of the direction, it is necessary to create appropriate conditions on the market, which do not really exist today. Therefore, in his opinion, the transition to stock trading will significantly affect the price dynamics in the biofuel market, and the trading will come out of the shadows. "Today, Ukraine imports 1/3 of gas. This can be avoided thanks to alternative types of fuel, which will save a lot of money in the budget," says the head of the State Agency for Energy Efficiency and Energy Saving, Hanna Zamazeyeva.