Concerns raised about Ukraine’s “unprofitable” biomethane industry

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Ukraine's biomethane industry is struggling, according to Oleg Ryabov, head of the alternative energy sector of Hals Agro.
His company has stopped producing biomethane due to economic conditions - the co-generation plant that converts the biogas into biomethane has been stopped.
In Ukraine, the cost of biomethane production is, in the best case, over €600 per 1,000 cubic meter. However, it is usually in the range of €800–900 per 1,000 cubic meter.
Natural gas, on the other hand, costs approximately €350 per 1,000 cubic meter.
The installation of biogas enrichment to biomethane at Hals Agro will be operational immediately after the opening of the opportunity to sell this alternative fuel to Europe, where the bloc is ready to pay €900-1,200 per 1,000 cubic meter for it, he added.
Currently, export is impossible due to a gap in Ukrainian legislation: it is necessary to settle the issue of customs clearance of biomethane during transportation abroad.
However, legislation has recently been advanced to pave the way for biomethane exports.
On 7 February, the Verkhovna Rada adopted the document in the first reading.
Due to unprofitability, the cogeneration biomethane plant at the Vitagro biogas plant is also not working, market participants told delo.ua. As a result, this source of energy is currently not produced on an industrial scale in Ukraine.
According to the head of the Bioenergy Association of Ukraine (BAU) Heorhiy Heletukha, the biomethane industry in the country is still developing. During 2024-2025, there are plans for up to 10 new facilities, with a capacity of 3 to 56 million cubic meters.

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