Ukraine restores large-scale production of biomethane

Vitagro's biomethane produced by Vitagro is submitted to the gas transportation system of Ukraine. During the starting days of operation, the plant operates at a capacity of 60-70% of the planned. In the future, the company specialists will gradually increase production and pumping. Currently, the daily volume of gas that gets to the Ukrainian network is about 6 thousand cubic meters. The plant may come to full capacity by the end of October this year.

In parallel, Vitagro is working to establish biomethane exports. In particular, the company already has all the necessary permits and just accumulate sufficient volumes in gas storage facilities, will immediately be able to sell biomethane to foreign buyers. The company invested in the company 6 million euros, and the return of investments was planned for 5 years of full work. But now the time limits are shifting somewhat due to the past delay with state regulation on biomethane exports, but now that all procedures have been developed and approved at the level of legislation, the company may more precisely predict its work and create new investment projects. At the same time, Vitagro biomethane will be used for both its own and purchased raw materials. First of all, it is livestock and crop waste. In addition to biomethane, the plant will receive a solid and liquid digestat, which will be used by the company as an organic fertilizer.

It should be reminded that in February this year the production of biomethane in Ukraine actually stopped due to economic inappropriateness. Then even Gals Agro, one of the leading manufacturers of biomethane in Ukraine, suspended the production of the product. At that time, in Ukraine, the cost of production of biomethane was at best over 600 euros per 1000 cubic meters, and natural gas cost approximately 350 euros for a similar volume.

It should be noted that the capacity of Ukrainian plants ready for biomethane exports is almost 80 million cubic meters. It is noted that among the players of the biomethane market in the Association "Bioenergetic Association of Ukraine" there are such projects as "Theophipol Energy Company" in Khmelnytskyi, "Yuzefo-Mykolaiv Biogas Company" in Vinnytsia, "Gals Agro" and Vitagro.

We will add that in March this year, the Verkhovna Rada approved in the second reading the bill on customs control and customs clearance of biomethane, which are moved by pipeline transport across the customs border of Ukraine. Customs clearance will be carried out on the basis of information on biogas volumes (or other types of gas from alternative sources), which during the transportation of GTS by its physicochemical characteristics can be replaced by the appropriate volume of natural gas. In order to carry out customs clearance of biomethane, it will be necessary to submit a periodic customs declaration, which contains information about the number of the account of the manufacturer of biomethane in the register of biomethane, and an additional customs declaration with information on the guarantee of gas origin.

In general, based on the existing raw material base, Ukraine can produce 21.8 billion cubic meters of biogas or biomethane annually. This is stated in the report "Cooperation of Ukraine and the EU in the biomethane sector: prospects and obstacles" prepared by the DIXI Group analytical center. According to analysts, despite the significant difference in the degree of development, the potential of production of biomethane/biogas in Ukraine is promising. Based on the data on existing production raw materials, the Bioenergy Association of Ukraine estimates it at 21.8 billion cubic meters a year, and in the provision of raw materials the most promising for the biogas industry is Kyiv, Vinnytsia, Poltava and Cherkasy regions. According to the report, under favorable conditions, the production of biomethane in Ukraine can reach 1 billion cubic meters per year in 2030, 4.5 billion cubic meters per year - in 2040 and 20 billion cubic meters per year in 2050. At the end of the forecast period, half of the biomethane produced can be consumed within the country. In order to achieve such indicators of biomethane production by 2050, the industry will require 40 billion euros of investment. The main obstacles in the establishment of biomethane production determined the unregulated exports of this gas to the EU, in particular its customs clearance. It is also important to launch a biomethane registry and a warranty system. In addition, the EU has not regulated the issue of transboundary trade in biomethane.