Biomass can be used to produce gas fuel.

Biogas is a gas derived from biomass. Possible sources of biogas: animal farms waste, wastewater or landfills organics. Biogas is a mixture of methane (60-70%), CO2 and small quantities of other gases that can be used to generate power and to meet heating or cooking demand.

Biomethane is a near to 100% methane produced either by “upgrading” biogas or through the gasification of solid biomass; since it is indistinguishable from the regular natural gas stream, it can be transported and used wherever gas is consumed, but without adding to emissions.

The case for biogas and biomethane lies at the intersection of two critical challenges of modern life: dealing with the increasing amount of organic waste that is produced by modern societies and economies, and the imperative to reduce global greenhouse gas (GHG) emissions.

Advantages of biogas and biomethane

Current state of biogas market in Ukraine

The largest biogas projects under construction in Ukraine, with a capacity of 10-20 MW el., cost 2-2.5 thousand Euros/kWh. The main investments in biogas CHP projects are the energy generation unit costs (30-40%), construction of reactors and other technological facilities costs (35-45%), as well as technological equipment costs (15 -25%).

The payback of biogas projects in Ukraine can be up to 4 years, even if only electricity is sold at a “green” tariff. However, the potential for the construction of such large-scale projects is limited, and the efficiency of existing biogas projects in Ukraine often does not exceed 50-60%. The payback of most biogas projects in Ukraine, is estimated at 5-6 years, and taking into account the level of efficiency – at least 7-8 years.

The payback of biogas projects in Ukraine can be up to 4 years, even if only electricity is sold at a “green” tariff

About biogas projects in Ukraine

The biogas plants income in Ukraine is formed mainly from sale of electricity generated in biogas CHP at a “green” tariff.

Potential sources of additional income of a biogas plant can be thermal energy (up to 60% of the generated thermal energy) and digestate (fermented mass) as a fertilizer or soil improver.

Current state of biomethane market in Ukraine

Загальний потенціал The total biomethane production potential in Ukraine is at least 7.8 billion m3 or 25% of current natural gas consumption (2018 data).

Despite the rather intensive development of biomethane production in the EU countries (Germany, Italy, France, the Netherlands, Denmark, Great Britain), in Ukraine this direction is not developing properly.

Possibilities of using biomethane in Ukraine

The production of biomethane from biogas involves additional costs for the separation of methane and carbon dioxide. Therefore, the unit of energy in biomethane is more expensive than in biogas. On the other hand, biogas can be used for the production of electricity and heat, while for biomethane new opportunities are opened which, in the conditions of Ukraine, includes:

  • Production of electricity and heat from biomethane using a gas transmission network. 
  • Storage of biomethane in the natural gas network for the production of electricity at peak load. 
  • The use of biomethane as a motor fuel for municipal transport and agriculture. 
  • Replacement of natural gas with biomethane.
  • Export of biomethane to the EU using the National Register of Biomethane Production and Consumption. 

Cost of biomethane generation

The total commercial biomethane cost, taking into account the raw materials, installation capacity and the logistics to the final consumer costs, can reach 313-1136 €/1000 m3. The most important component of biomethane cost is raw materials cost.

Currently, biomethane production in Ukraine is not competitive with the market price of natural gas and needs support

UABIO Position

The most popular support mechanism is a “green” tariff for biomethane or electricity produced from biomethane.

Barriers to the development of the biogas and biomethane sectors

End use of heat

Problems with connection to district heating, heat from biogas does not compete with heat from natural gas.

Biogas / biomethane as an energy product

Low conversion efficiency into electricity, heat loss. Lack of conditions for biomethane.

End use of biomethane motor fuel.

Lack of biomethane legislation, lack of state support, biomethane motor fuel does not compete with the price of natural gas.


No supplier guarantees. Complicated project development procedure (problems with connection to the power grid).

End use of digestate

Lack of certification for organic fertilizers and agriculture, lack of equipment for waste disposal.

Raw materials from plant residues

Lack of experience, in particular the use of lignocellulosic materials (straw), underdeveloped biofuel market.

UABIO recommendations for biogas and biomethane sector development in Ukraine

  • Biomass market development
  • Extension of FIT for electricity produced from biomass / biogas / biomethane.
  • Ensuring non-discriminatory third party access to heating networks
  • Update (increase) of the stimulating tariff for thermal energy from biomass / biogas
  • Overall increase in the investment attractiveness of the bioenergy sector
  • Solving practical problems and lack of experience in using agrobiomass as fuel or raw material
  • Development of organic farming and use of digestate
  • Development of regulatory framework for the production and use of biomethane

UABIO results

UABIO has developed a draft law “On stimalation electricity production from biomethane”, which provides:

Definition of the term “biomethane”;

Introduction of biomethane production and consumption registraion;

Establishment of a “green” tariff for electricity produced from biomethane.