Ukraine is increasingly viewing biomethane as a strategic resource for energy independence and integration into the European market. This is not only a technological transition but also a political decision that could redefine the country’s place on Europe’s energy map. Biomethane meets EU climate targets, generates added value for the agricultural sector, and allows income diversification.
At the same time, its development faces systemic obstacles—both on the domestic and foreign markets. Despite reduced Russian gas supplies, in 2024 the EU still imported 52 bcm from Russia (19 per cent of total imports), creating an additional motivation for Europe to open its doors to alternative sources—among which Ukrainian biomethane could play a key role.
Ukrainian potential
According to the Bioenergy Association of Ukraine (UABIO), the country is capable of producing up to 21.8 bcm of biomethane annually—four times more than the current production level in the EU. This also exceeds Ukraine’s domestic natural gas output in 2024 (19.1 bcm). “At an average export price of 0.9 euros per cubic metre, biomethane could generate around 20 billion euros per year, making Ukraine the main supplier of this gas to Europe and capturing 20 per cent of the market,” says UABIO chairman Georgiy Geletukha.
The feedstock base is remarkably broad: agricultural residues (straw, corn stalks, beet pulp, manure), by-products of the food industry, and livestock waste. The scale of Ukraine’s agricultural sector creates a unique resource foundation, enabling industrial-scale biomethane generation without competing with food production. Beyond traditional residues, Ukrainian researchers are exploring cover crops, lignocellulosic waste, and even microalgae, potentially adding billions of cubic metres to available resources.
According to Geletukha, Ukraine’s potential far exceeds that of even the largest European countries. “We have a unique infrastructure: even in small villages, there is access to the gas transmission system. This significantly simplifies the integration of our biomethane into European networks,” he stresses.
Currently, Ukraine operates 83 biogas plants (140 MW el.) and four biomethane facilities (41 mcm per year). In 2025, Vitagro, Mironivsky Hliboproduct (MHP), and Hals Agro became pioneers of production and export. Vitagro invested six million euros in a plant with three mcm capacity, MHP launched a facility near Ladyzhyn with a capacity of 24 mcm/year, and Hals Agro entered the market with around six mcm/year.
In parallel, several large-scale projects are underway: UM Liquid Gas (11 mcm/year Bio-LNG) and Teofipol Energy Company (56 mcm/year). By the end of 2025, total capacity will reach 111 mcm. About 50 per cent of equipment for new plants is produced domestically, boosting Ukraine’s engineering sector.
European demand and Ukraine’s strategic opportunities
The European Union has set ambitious targets: to increase biomethane consumption from the current 5 bcm per year to 35 bcm by 2030 and 150 bcm by 2050.
Yet European experts admit that even under optimistic scenarios, production will not exceed 20 bcm by 2030. These estimates are cited by the European Biogas Association (EBA) in its 2024 Statistical Report and by the Fraunhofer ISI.
“By 2030, they will definitely not reach 35 bcm, maybe 15–20. And this creates an opportunity for Ukraine: while Europe faces a shortage, our biomethane can fill a significant gap,” emphasises Geletukha.
Ukraine’s strategic opportunities are shaped by several factors: abundant agricultural feedstock, a developed gas transmission system, geographic proximity to the EU, and already established export channels. An additional driver is the entry into force of EU Regulation 2024/1787 on reducing methane emissions in energy, which raises barriers for Russian gas but simultaneously opens a niche for ‘clean’ alternatives. “This regulation makes Russian gas toxic on the EU market and, at the same time, creates opportunities for Ukraine. Biomethane is a resource that already meets European climate standards today,” Geletukha underlines.
As noted by Oleh Savytskyi, strategic advisor at Razom We Stand, the new regulation could technically cut off Russia from the European market as early as 2027, a year ahead of the REpowerEU plan. This strengthens the case for Ukrainian biomethane as a real alternative capable of supplying additional volumes during the transition.
Thus, the new EU rules may accelerate not only the rejection of Russian gas but also Ukraine’s integration into the EU market. By aligning with standards, Ukraine can offer long-term contracts, joint projects with traders, and partnerships in the energy transition.
Obstacles and prospects
Despite technological progress, the main challenge remains production economics. The cost of biomethane in Ukraine ranges from 313 to 1,136 euros per 1,000 cubic meters, while natural gas on the domestic market is about half that price.
“Our businesses are forced to rely solely on exports. A domestic market could only emerge after the launch of an emissions trading system,” Geletukha notes. Domestic barriers include the absence of ecological premiums, legal conflicts in certifying digestate as fertiliser, and difficulties in connecting to heat networks.
On the external market, the main obstacles remain the high cost and complexity of certification under the International Sustainability and Carbon Certification (ISCC) standard, as well as uncertainty about whether Ukrainian biomethane will be fully recognised within the EU climate goals framework. According to Bureau Veritas Ukraine, certification applies not only to the plant itself but also to the entire supply chain—from feedstock origin to the trader—meaning every participant must comply with sustainability criteria.
“Our documents are still not always recognised by [EU] member states for accounting emission reductions, and this is exactly what negotiations with the European Commission focus on,” explains Oleh Ryabov, deputy CEO for economics at the agribusiness holding Hals Agro.
He stresses that the first shipments have already been successful, but talks with the Commission are moving slowly, and producers are waiting for final decisions on transparency and traceability of Ukrainian procedures. In this context, the Union Database (UDB), which will record the origin of every cubic meter, will be crucial.
Nevertheless, prospects remain significant. A study by Green Deal Ukraine and the Ukrainian Climate Office forecasts that by 2030 Ukraine could produce up to one bcm of biomethane annually, and by 2050—between six and 22 bcm.
Another important factor is the transit role of neighbouring states: Poland is already considering becoming a hub for transporting Ukrainian biomethane to EU markets. This creates an additional integration channel and allows Ukraine to gradually consolidate its place in Europe’s energy infrastructure.
Photo: Dreamstime.
