Ukraine’s Biomethane Potential Held Back by Regulatory and Cost Gaps, UABIO Finds

Ukraine’s agricultural sector generates a feedstock base for biomethane production, yet regulatory shortcomings and cost pressures continue to limit the fuel’s uptake in transport, according to a new analytical paper from the Bioenergy Association of Ukraine (UABIO) prepared under the Innovate Ukraine project.

The document outlines two processing routes: biomethane can be compressed to 200 bar as Bio-CNG, a direct substitute for conventional natural gas, or liquefied as Bio-LNG. Biomethane is also presented as an alternative for energy-intensive and long-haul transport. European experience, the experts note, shows that moving in this direction does not require major new infrastructure development or large upfront technology investment.

The obstacles holding back the Ukrainian market are both economic and legislative. Key barriers identified in the analysis include:

• higher production costs for biomethane compared with conventional natural gas;
• no sector framework law or long-term development roadmap;
• an absence of approved national technical standards;
• declining natural gas consumption in domestic road transport;
• a need for additional capital investment in production and retail infrastructure.

To advance the sector, UABIO experts recommend establishing a domestic emissions trading scheme, adopting a framework law, introducing co-financing for refueling infrastructure, setting consumption targets, and approving technical standards alongside relevant tax adjustments. Until such conditions take hold, compressed natural gas is expected to retain its price advantage over Bio-CNG.

Source: UABIO