Boosting Ukraine with Biomethane Industry Advancements

The adage is well-worn, but it resonates strongly with the current situation in Ukraine. My visit in May revealed a nation eager to shape its future, envisioning a post-war landscape, and aspiring to integrate into a new European Ukraine. While they undoubtedly require assistance to reconstruct their devastated infrastructure, they are not seeking handouts. They are more interested in forming partnerships than receiving donations, and they prefer stakeholders to benefactors.

Ukraine's Biomethane Industry: A Reservoir of Potential

During my visit, I engaged with individuals in my field - renewable gas or biomethane. I was aware of Ukraine's potential, with projections suggesting an annual production capacity of 9 billion to 20 billion cubic meters of biomethane. To put this into perspective, the entire EU-27 currently produces only 3 billion cubic meters of biomethane annually.

I anticipated discovering potential, but I was pleasantly surprised to encounter individuals actively planning, executing, and developing new projects. Despite challenging circumstances, they are striving to establish partnerships, facilitate cross-border trades, and construct the necessary supply chains for successful projects.

Ukrainian Innovators Taking the Lead

Ukrainian farmers, engineers, and developers are not idly waiting for the war to end to advance their projects; they are taking action now. Instead of inquiring about the support they can receive from the EU, they are more likely to ask how the EU plans to achieve its goal of producing 35 billion cubic meters of biomethane annually by 2030 without Ukraine's contribution.

Organic Growth and Cross-Border Cooperation

Much of the progress so far has been organic, with large agri-businesses investing in new plants or converting existing electricity-generating plants to biomethane-injecting facilities. These homegrown businesses are partnering with EU companies to directly sell their gas or the green premium for the gas produced.

The Role of the European Union

The pertinent question posed by my Ukrainian colleagues is this: Ukraine is keen to develop a biomethane industry, but it doesn't need to do so immediately. However, the EU will not achieve its 2030 target without tapping into Ukraine’s substantial resources. So, what steps can the EU take to facilitate this?

Energy Security and Independence

The issue of EU and broader European energy security is also tied to this. Ukraine’s vast potential for biomethane production can decrease Europe’s reliance on Russian gas and mitigate its potential use as a future threat.

Establishing a Green Gas Issuing Body in Ukraine

So, what should this aid look like? At present, Ukraine lacks a green gas issuing body, so the emerging biomethane market relies on private business-to-business trades. If a green gas issuing body can be established in Ukraine and recognized by the EU, Ukrainians will be able to sell the green component of their gas production to any entity within the EU. This will open up new markets and provide market certainty to potential investors in Ukrainian biomethane.

Mutual Advantages and Sustainable Development

If this can be achieved, Ukraine can rebuild better by replacing a significant portion of its existing fossil fuel gas network with a clean, green biomethane network. The EU will make substantial progress towards its own biomethane targets, and Europe as a whole will move closer to reducing its dependence on Russian energy. This is not about handouts, but about providing a hand up and fostering future cooperation based on mutual benefit.