Ukraine’s largest biomethane plant has begun operations: what this means for the energy sector
18 March 07:58
Ukraine’s largest biomethane production plant has begun operations in the Khmelnytskyi region. The facility was built by the Teofopil Energy Company and has already become the largest project in the industry in terms of production volume. This was announced by Georgiy Geletukha, chairman of the board of the Bioenergy Association of Ukraine, according to "Komersant Ukrainian", citing the industry publication ExPro.
What is the capacity of the new biomethane plant?
The new plant is capable of producing up to 56 million cubic meters of biomethane per year, making it the largest facility of its kind in Ukraine.
A key feature of the project is that the facility is directly connected to the gas transmission system, allowing gas to be supplied to the network immediately.
In total, there are currently six biomethane plants operating in Ukraine with a combined capacity of approximately 106 million cubic meters of gas per year.
How many biomethane plants are operating in Ukraine
According to industry experts:
- 4 plants supply biomethane to gas networks
- 2 plants produce bio-LNG for transportation in liquid form
- another plant is planned to launch in 2026.
What is biomethane and why is it important
Biomethane is an eco-friendly alternative to natural gas, produced from biogas after purification. It is made from agricultural waste, including:
- straw
- manure
- chicken manure
- sugar production waste
Experts note that the development of biomethane does not threaten food security, as it is produced using waste rather than food products.
What is the potential for biomethane in Ukraine
According to experts, Ukraine has significant potential for the development of the biomethane industry.
Specifically:
- it is technically possible to produce up to 10 billion cubic meters of biomethane per year
- by 2030, it is realistic to reach a level of 1 billion cubic meters
- by 2040 — approximately 4.5 billion cubic meters
- by 2050—up to 20 billion cubic meters
How much investment is needed
According to estimates by the Bioenergy Association of Ukraine, to realize this potential, it is necessary to:
- build approximately 4,000 biomethane plants
- attract approximately 40 billion euros in investment
At the same time, the development of the industry could yield significant economic and environmental benefits.
Exporting biomethane to Europe
Ukraine has already begun exporting biomethane to the European Union. The first shipments took place in 2025.
Among the companies that exported biomethane:
- MHP — 8.7 million cubic meters and over 5,000 tons of bio-LNG
- VITAGRO — 2.5 million cubic meters
- Gals Agro — 75,000 cubic meters
- UM Liquid Gas — approximately 900 tons of bio-LNG
In total, Ukrainian companies exported over 11 million cubic meters of biomethane in 2025.
What are the benefits of developing the biomethane sector?
Experts believe that the development of the biomethane industry could bring Ukraine significant economic and environmental benefits:
- a reduction in CO₂ emissions by 50 million tons annually
- creation of up to 250,000 jobs
- reducing dependence on imported gas
- the opportunity to become a major exporter of energy resources
However, Ukrainian producers are currently unable to fully capitalize on high biomethane prices in the EU due to regulatory restrictions and risks associated with the war.
Ukraine plans to launch new biomethane plants
According to experts, another biomethane plant could appear in Ukraine as early as 2026. Thus, the number of producers will continue to grow.
At the same time, current production volumes remain modest compared to the country’s total gas consumption.
How much gas does Ukraine consume
Currently, the biomethane sector produces about 0.1 billion cubic meters of gas per year, while annual natural gas consumption in Ukraine is approximately 20 billion cubic meters.
This means that the share of biomethane is still insignificant, but it has great potential for growth.
Industry Development Prospects
Experts note that if regulatory barriers are removed, Ukraine could become one of the key suppliers of biomethane to the European market.
As a reminder, in 2024, biomethane was fed into Ukraine’s gas transmission system for the first time—this was done by a Vitagro Energy plant in the Khmelnytskyi region.
