In 2026, five new biogas plants may begin operations in Ukraine. The total annual capacity of these facilities will be around 20 million cubic meters of biogas.
This is reported by Business • Media
Prospects for the Biogas Market in Ukraine
The head of the Bioenergy Association of Ukraine, Georgiy Geletukha, noted that Ukrainian biogas has recently started to be exported, while most entrepreneurs are currently observing market developments, hesitating to make large investments in new projects. Companies that are already exporting to the European Union face complex bureaucratic procedures when transporting gas, as well as the need to confirm that the biogas meets European quality standards.
Production Costs and Export Features
According to the expert, there is demand for Ukrainian biogas in the European market, and Ukraine has already established the necessary legislative framework for the industry’s development. At the same time, producers do not have the opportunity to receive the so-called “green premium” — a financial supplement provided by the state to producers of environmentally friendly energy to enhance its competitiveness.
“Thus, instead of a price of €900 for 1,000 cubic meters, Ukrainian producers earn €750-800 for 1,000 cubic meters. Moreover, the production cost of biogas is about €650 per 1,000 cubic meters.”
Therefore, financial support from the government would allow Ukrainian biogas producers to increase their profits and make the industry more attractive for investment. However, even in the absence of the “green premium,” the industry continues to develop, and demand from the European Union contributes to the opening of new production capacities.