Vision for Ukrainian biogas/biomethane sector development
We present the vision of the development of the Ukrainian biogas/biomethane sector, which will form the basis of the roadmap for the implementation of plans and targets.
- Download the document: “Vision for Ukrainian biogas/biomethane sector development”, Bioenergy Association of Ukraine, February 2021
Development of the vision and roadmap for biogas/biomethane is part of REGATRACE project. REGATRACE is EU-wide project funded by the European Union. Bioenergy Association of Ukraine is linked party to European Biogas Association in the REGATRACE project.
The EU countries have set a substitution of natural gas consumption by renewable gases (biomethane, green hydrogen) by 2050 as one of the goals of climate neutrality within the Green Deal framework. Ukraine has all the potential to join this process.
The average annual growth of the biogas sector was 65% in 2017-2019, however further development is not clear due to the limited attractiveness of green tariff for electricity. As estimated by the experts of the UABio production of biogas could be 1.45 Mtoe (17 TWh) in 2035, but we need a clear action plan.
The situation in Ukraine
According to the studies of the Ukrainian Bioenergy Association (UABIO), Ukrainian’s biogas/biomethane production potential for digestion technology was estimated to be about 6.8 bcm of methane in 2018. The potential includes biogas from agricultural waste and by-products (2.8 bcm), landfill gas and biogas obtained from industrial and municipal wastewater (1.0 bcm), and biogas from maize silage (3.0 bcm).
Expert estimates show that the potential for biogas/biomethane production may increase up to 17 bcm in 2050. Such significant growth can occur due to increase of industrial production, growth of raw material base for biogas production (crop residues), consolidation of livestock enterprises and the transition from solid waste disposal to the use of mechanical and biological AD treatment technology.
It should be noted that according to the company “Naftogaz of Ukraine”, the total consumption of natural gas in Ukraine was 29.8 bcm in 2019, of which 14.3 bcm (48%) were imported. Therefore, the maximum possible exploitation of the available biogas/biomethane potential is one of the tools of ensuring the country’s energy security.
There is a need for defining long-term actions; hence an official national biogas production target for 2035 and a long-term national incentive package are urgently needed.UABIO position
Ukrainian biogas sector should be strongly integrated into the modern energy system and network. Besides that, the sector should hold a strong foothold in national the nutrient recycling activities and participate in the archiving of the national target of greenhouse gases emission reduction.
- Introduction of subsidies and other means of support to improve the profitability of the sector.
- Introduction of incentives to increase the demand for end-products.
- Using the capabilities of the Ukrainian GTS connected to European GTSs and virtual export to the EU market (in the long term).
- Development of predictable and long-term incentive schemes to encourage for new investments.
- Development of the Ukrainian Register for biomethane production and utilization.
- Cooperation with similar Registries of EU countries is the potential possibility to exchange the biomethane Guaranty (certificates) of Origin (GoO) with other countries.
Roadmap for the development of the biogas / biomethane sector
This presented vision of the sector’s development envisages the search for actions in the long-term. The next phase – a roadmap creating (this process started in November 2020).
The roadmap should include recommendations for legislative and market changes as well as activities aimed at achieving the required development in the production, trade, and consumption of biomethane.
To discuss presented vision we invite all stakeholders, in particular:
- Ministry for Development of Economy, Trade and Agriculture of Ukraine ;
- Ministry of Energy of Ukraine ;
- Ministry of Development of Communities and Territories of Ukraine;
- State Agency on Energy Efficiency and Energy Saving of Ukraine ;
- Energy and Utilities the National Regulatory Commission of Ukraine;
- Gas Transmission System Operator of Ukraine;
- Private business and NGO representatives.