Ukraine is entering an active stage of European integration, including in the energy sector. Experts at various levels are discussing various options for energy independence not only for Ukraine but also for Europe. Biomethane occupies a certain stable percentage here.

That is why “Ukrainian Energy” visited the round table organized by the Bioenergy Association of Ukraine.

The round table was organized within the framework of the project “Development of a business model for biomethane production in Ukraine”, which is implemented in the program “Innovate Ukraine – support for the energy recovery of Ukraine” by a consortium of companies from Great Britain (MDY Legal, Rika Biofuel Developments LTD) and Ukraine (Bioenergy Association of Ukraine, Regenerative Agro, STC “Biomass”).

Methane is the main part of natural gas extracted from the ground. The prefix “bio” means that the gas is not mined, but obtained in the process of converting natural organic materials. In the process of anaerobic digestion (i.e. without access to air), special bacteria process various organic waste or specially selected organic matter and produce biogas. It consists of 50-75% methane, and the rest is carbon dioxide, water vapor, and hydrogen sulfide.

Currently, 73 installations with a capacity of 124 MW produce electricity and heat from biogas in Ukraine, according to the Bioenergy Association. But now there is actually no biogas plant in the country that supplies biomethane to the grid. The root reason for this is that at current prices, selling biomethane within Ukraine is unprofitable, and exporting to the EU is still impossible due to a number of unresolved regulatory issues.

"Despite the significant difference in the level of development, the potential for biomethane/biogas production in Ukraine is promising. Based on data on available production raw materials, the Bioenergy Association of Ukraine estimates it at 21.8 billion cubic meters per year," says a report by the DiXi Group analytical center, which was presented in the spring of this year.

Ukraine has significant potential for biomethane production. Of course, because we are an agrarian country, we have significant raw material resources for the development of cycle production in the agricultural sector - biogas and biomethane. That is why investments in biomethane plants that will operate on the basis of this raw material and, accordingly, further export biomethane to the countries of the European Union are important. As noted by the Ministry of Energy, the first plants producing biomethane have already started operating in Ukraine. Their capacity is about 3 million cubic meters of biomethane per year.

For Ukraine, the main obstacle in this context is the lack of a registry for issuing, distributing and canceling guarantees of origin for biomethane (such guarantees are needed so that natural gas is not sold under the guise of biomethane) - such are the requirements of the EU.

For the rapid increase in biomethane production in Ukraine, it is also important to have sufficient capacities for its transportation.

However, Ukraine is actively working on these problems.

For example, the National Commission for State Regulation of Energy and Utilities (NCRECU) simplified the requirements for the technical conditions for connecting biomethane production facilities to gas distribution systems, the Ministry of Energy reported.

The relevant resolution on amendments to the Code of Gas Distribution Systems was adopted on November 5.

The document establishes the procedure for submitting and considering applications for connection, formulates requirements for connection points and biomethane accounting. This will contribute to the sustainable development of Ukraine's energy sector and the transparency of the procedure for connecting biomethane installations.

“We are working together with the regulator to strengthen the integration of the Ukrainian biomethane market into the EU market. This decision will contribute to the energy independence of the state through the development of its own gas production and diversification of supply sources. The development of the biomethane sector will attract investments and create new jobs. The impact of this decision on the agricultural sector, which will receive new opportunities for processing agricultural waste and will contribute to the development of a circular economy, is especially important,” said Deputy Minister of Energy of Ukraine Mykola Kolisnyk.

The introduction of biomethane technologies will reduce greenhouse gas emissions and ensure effective disposal of organic waste, which brings Ukraine closer to European environmental standards and fully complies with Ukraine’s strategic course on decarbonizing the economy and developing renewable energy.

Since September of this year, a clear mechanism for customs clearance of biomethane exports has been introduced in Ukraine. The new procedure establishes transparent rules for all market participants and regulates the export procedure through the Ukrainian gas transportation system to EU countries.

The head of the Ukrainian Bioenergy Association, Heorhiy Geletukha, emphasized the outdated gas codes, which are based on Soviet standards of calorific value.

It turns out that both Ukrainian gas and biomethane, which is also tied to these indicators, do not meet these standards.

“We have quite high requirements for calorific value. They are still allowed into the network, but at the same time, producers pay an additional fine for non-compliance with these indicators. This situation supposedly suits everyone, but new players – biomethane producers – have started thinking about guarantees, since they are going to export it and want to be sure that their gas will always be able to enter the network without hindrance. Today you will be allowed to pump gas, limited to a fine for non-compliance, and tomorrow they will not accept it because of this non-compliance,” emphasized Heorhiy Geletukha.

The easiest and most practical way to do this is through changes to the GTS code, which has incorporated requirements from the Soviet “GOSTs”. This can be done by the regulator NEURC at the request of the GTS operator.

Producers and investors are also concerned about the unfair CO2 tax from biomass boiler houses and power plants. Although biomass is considered CO2 neutral all over the world and is not subject to such a tax.

Therefore, experts agreed that it is worth developing this area and, at the same time, creating competitive conditions for all market participants.

The European Commission has already adopted a number of legislative proposals that will affect the use of biofuels in the automotive, aviation and maritime transport sectors in the medium and long term.

Thus, Member States can choose between: a target of reducing natural gas intensity by 14.5% by 2030 (compared to 1990) and ensuring a share of at least 29% of RES in final energy consumption by 2030.

In the coming days, Ukrainian Energy will familiarize readers with the prospects of biogas in Ukraine in more detail, with the opinions of producers, and we will find out what are the chances of Ukrainian biomethane not only entering the EU, but also replacing Russian gas.

Olena Marchenko, specially for Ukrainian Energy

Tags:EU