The Verkhovna Rada approved the draft law No. 9456 on the export of biomethane shutterstock

The Verkhovna Rada approved the draft law No. 9456 on the export of biomethane

Katerina Belousova

Biomethane production potential in Ukraine reaches 21.8 billion m3 per year

On Wednesday, March 20, the Verkhovna Rada approved in its entirety draft law No. 9456 "On Amendments to the Customs Code of Ukraine on Customs Clearance of Biomethane," which is supposed to unblock biogas exports to the EU.

The document was voted in favor by 297 MPs, MP Serhiy Labaziuk of the For the Future faction reports on Facebook.

He explained that the draft law was developed as part of the Memorandum between the EU and Ukraine on strategic partnership in the field of biomethane, hydrogen and other synthetic gases. The adoption of the document will allow Ukraine to join the European network of biomethane producers.

"This is a powerful step towards our energy independence and the destruction of the EU's dependence on Russia, it means additional funds to the state budget, jobs and the development of the Ukrainian agro-industrial complex," Labazyuk said.

The Bioenergy Association of Ukraine said that the adoption of the draft law will help overcome a critical barrier to biomethane exports.

The report noted that it is now necessary to

  • to amend the orders of the Ministry of Finance dated 30.05.2012 No. 629 "On Customs Formalities for Pipeline Transport and Power Lines" and No. 448 "On Approval of the List of Goods for Customs Clearance by the Energy Customs of the State Customs Service of Ukraine" dated 20.04.2015
  • clearly define at the government level which ministry and official are responsible for the development of biomethane production in Ukraine. Set personal KPIs (key performance indicators) for them on these issues;
  • develop and approve a roadmap and strategy for the development of the industry.

The Association emphasized that thanks to the Law No. 1820-IX "On Amendments to Certain Laws of Ukraine on the Development of Biomethane Production" adopted in the fall of 2021, the country began active construction of biomethane plants. So far, two such plants have already been built, and several are under construction. In 2024-2025, 10 new facilities are planned to open with a capacity of 1.5 million m3 of biomethane per year each.

It is noted that by 2030, Ukraine can achieve production of up to 1 billion m3 of biomethane per year, and by 2050 – up to 20 billion m3/year.

"Ukraine can become a full-fledged partner of the EU, as it has a reliable gas transportation network and an almost inexhaustible raw material base as an agricultural country," the Association emphasized.

The report added that biomethane is absolutely ready for injection into the gas network, so no investments are needed to modernize gas distribution and transmission systems and equipment. In addition, taking into account biomass from cover crops that can be grown on 20% of arable land, the potential for biomethane production in Ukraine is 21.8 billion m3 per year.

Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, added that the draft law also raises the threshold for the value of goods sent by individual entrepreneurs and businesses outside Ukraine in international postal or express shipments without a written declaration. Previously, a written customs declaration was required for goods worth more than €150. Now the threshold will reach €1,000, which will reduce business costs and speed up logistics.

Earlier, EcoPolitic wrote, that on February 7, the Verkhovna Rada adopted as a basis the draft law No. 9456 "On Amendments to the Customs Code of Ukraine on Customs Clearance of Biomethane", which is intended to unblock biogas exports to the EU. The document was registered in July 2023.

As EcoPolitic previously reported, Advisor to the Minister of Environmental Protection and Natural Resources Oleksiy Ryabchyn said that resolving the issue of biomethane development would help Ukraine get a higher score from the European Commission. Sergiy Savchuk, Director of Development and Investment at VITAGRO Group, emphasized that exports are the basis for the development of the industry.

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