Experts: It is Ukraine’s mission to raise the barrier to ban biomethane export
On February 29, Interfax Ukraine held a press conference on the critical need to lift the ban on biomethane exports. Key market players expressed their professional opinion:
- Oleksandr Dombrovskyi, chairman of the board of Global 100% RE Ukraine, president of MHP Eco Energy PJSC.
- Georgii Geletukha, chairman of the board of the Bioenergy Association of Ukraine.
- Serhii Savchuk, Director of Investments and Business Development of the VITAGRO Group of Companies.
- Oleh Riabov, executive director of the Horodyshche-Pustorivskaya agrarian company (HOPAK LLC).
At stake is the life of one of the most promising industries.
We share the key theses of all speakers.
Oleksandr Dombrovskyi:
In recent years, a whole industry has been formed to replace imported and national natural gas and decentralize energy supply.
We represent biogas and biomethane producers and invests in the industry. These are unique technological projects with great potential.
Today we have a serious problem at the state level. However, we don’t want to criticize, but we ready to help the Government in wartime.
Distributed generation makes it possible to be strong, stable, clean and promising. Green generation is an instrument of victory.
Biogas technologies show very high efficiency, I say this as a professional engineer. In particular, thanks to biogas technologies, we survived during the periods of electricity shortage.
Oleh Riabov:
The total volume of investments of our company amounted to 33 million euros only in the biogas industry in the Chernihiv and Kyiv regions.
In the spring of 2021, an official and promising presentation of the biomethane plant launch took place. However, we still haven’t received permission not only to export, but to join the networks!
Biomethane cannot harm Ukrainian pipes, this proves 7 years of stable operation of our plants.
Today, we are 20 years behind Germany in the biogas industry, but we see this as an advantage, because we can develop the sector many times faster: in a few years, not tens.
The importance of the industry for the recovery of Ukraine is enormous. We should ask ourselves the question: why does the Shell company go to build biomethane plants in Germany, and not in us, despite the potential of Ukraine.
All the world’s energy giants have declared a course on green technologies. We must show that we are ready to accept investments. Because investors compare conditions. And they have the ability to find financing for military risks.
Advantages are huge. Decentralized production, which we are talking about, does not make sense to destroy with expensive planes. Local production significantly reduces transportation costs. Deep processing creates added value from the grain in the field to the end product. And this added value, which remains with us, ensures the development of communities. But it is important to understand that no one will wait long for our biomethane. We still have a chance.
Serhii Savchuk:
Only processing will give us the opportunity to access the export market. The Vitagro group has steadily invested in biomethane despite the war. 110 people in three shifts built a biomethane plant under the bad weather conditions. Investment were mere than 6 million euros.
These are our builders and contractors who have been provided with stable jobs. The plant can supply 3 million m3 of biomethane into the pipe, while accumulating 90,000 tons of organic fertilizers per year.
January 2024 — full readiness to export biomethane. But the obstacles have not been removed yet.
In October 2021, we were inspired by the passed law on biomethane. We believed that the state is ready for the development of this industry, so that part of the biomethane from the 35 billion m3 declared by Europe would be Ukrainian.
Today there is no ban on the export of biomethane, but there is a ban on the export of gas produced in Ukraine, as well as bureaucratic obstacles at customs. Biomethane export needs to be unlocked. Because two biomethane plants cannot work.
It is necessary to vote on the law on unblocking the export of biomethane already in the second reading. We need to develop Ukraine. Create jobs. Attract business. I believe that there can be many more biomethane plants in Ukraine even this year. In each district of each region, 5-10 such plants can be set up.
Georgii Geletukha:
Biomethane production is a blue ocean where there is no competition. Therefore, the Government should give priority to this direction.
It is necessary to understand that there is no ban on export, there is a question of customs clearance. Customs clearance of biomethane will be carried out according to the same procedure as natural gas. And we cannot wait 7 months for the second reading, as we waited for the first.
Authorities fear that instead of biomethane, natural gas will enter the network. However, all biomethane has sustainability certificates from auditing companies licensed by the European Union.
Now we witness tryings to complicate the connection in technical matters, which have long been regulated by law. And the law on customs clearance cannot interfere with other legislation.
We should not complicate, but simplify the connection of biomethane capacities to networks. This is the ideology of the European Union: simplify and support. And that is exactly where we are striving. Let’s think about how to simplify the connection. It is not adequate to connect one plant for 5 years and another for 5 months.
In March, we need a second reading of draft law 9456. Two plants are already idle. Three have already been built and will soon cannot work. Other market participants are waiting to see how this issue will be resolved.
Today, the most professional representatives of the industry are ready to comprehensively help the authorities, because biomethane is the future of Ukrainian energy. We believe that the export issue will be resolved in March!
A video recording of the live broadcast is available at the link (in Ukrainian): https://interfax.com.ua/news/video/970195.html
