Biomethane market study
Period 2018-2019
Financing EBRD
Services Consulting Market Research
Sector Biogas and biomethane
Location Ukraine

Biomethane (BM) production and use demonstrates fast development in EU counties, the level of annual production was 1.94 bill m3 of BM in 2017. Prognosis of BM production issued by European Biogas Association is 18.0 bill m3 in 2030. Total potential of BM production in Ukraine is over 7.8 bill m3 or 25% of NG consumption.

BM production is not competitive with current natural gas (NG) market price and need support all over the world. The most popular support mechanisms in EU countries is feed-in-tariff (feed-in-premium) for BM or electricity produced from BM.

Possible potential markets for biogas/BM in Ukraine

  • Electricity production from BM with use of NG grid
  • BM storage in NG grid for peak load electricity production
  • Substitution of NG by BM
  • BM use as motor fuel for municipal transport and agriculture technic
  • Export of BM in EU throw National BM Register

The project covers performance of biomethane market study in Ukraine. The study includes next chapters.

  1. Availability of raw materials for biomethane production
  • The most prospective feedstock types to utilize in respect to mid-to-large scale biomethane projects
  • Availability of the feedstock for biomethane production taking into account its current and possible alternative uses and level of establishing of supply chains.
  • Summary of agribusiness waste streams mapping, including structure of residues, flow balance, annual/seasonal volumes at the national and regional level.
  • The overall potential of biomethane production from the most prospective feedstock types (on the national level)
  • Mapping biomethane potential on: a) the regional level; b) the biggest agriculture stakeholders. Economic/market potential for the next 10 years
  1. Assessment of current situation with development of biogas/biomethane production and use
  • Available best international practices and its applicability in Ukrainian context
  • Types and size of the technologies currently used in Ukraine
  • Current production and use of biogas/biomethane in Ukraine
  • Possible new markets for biogas/biomethane use and its characterization
  1. Assessment of gaps for the development of technologies in Ukraine
  • Assessment of technological gaps for biomethane production
  • Assessment of legislative gaps for biomethane production and use
  • Assessment of normative gaps for biomethane production
  • Assessment of logistic gaps for biomethane use
  1. Feasibility studies on biomethane production and use
  • Costs for biogas upgrading technologies
  • Raw material costs, specific costs for raw material logistics
  • Energy and cost balance of raw material for biomethane production
  • Costs of biomethane-to-CNG production
  • Specific costs of CNG logistics
  • Feasibility study of CNG from biomethane use as a fuel for agricultural company and communal fleet

More information about the project results can be found on the official website of SAF Ukraine (Sustainable Agribusiness Forum)):  https://saf.org.ua/

Contact person from SEC “Biomass”: Yuri Matveev (mtv@secbiomass.com)