Alternative types of gaseous fuels, such as biogas, biomethane, and hydrogen, are among the strategic directions for replacing natural gas, strengthening national energy security, and implementing the goals of the European Green Deal.
In February 2023, at the initiative of the Ministry of Energy of Ukraine, a Memorandum of Understanding on strategic partnership in the field of biomethane, hydrogen, and other synthetic gases was signed between the Government of Ukraine and the European Commission during the 24th EU–Ukraine Summit.
The launch of a strategic partnership on renewable gases is an important step toward joint implementation of the REPowerEU plan and strengthening economic resilience. For Ukraine in particular, rapid development of the renewable gas sector is a crucial step for victory, post-war recovery of the energy sector, and enhancing overall energy security. The partnership aims to deepen cooperation in promoting renewable energy through environmentally friendly and sustainable gases and their derivatives, as well as aligning efforts to accelerate the green transition in both energy sectors.
Ukraine, in turn, has the largest area of agricultural land in Europe. The main feedstock for biomethane production is agricultural waste, which gives Ukraine a potential to replace 8–10 billion m³ of natural gas annually. Moreover, biomethane retains the energy properties of natural gas while being carbon neutral.
In October 2021, the Verkhovna Rada of Ukraine adopted a bill developed by the Ministry of Energy together with the State Agency on Energy Efficiency and Energy Saving, aimed at developing biomethane production. This law introduced the concept of "biomethane," which was previously absent from Ukrainian legislation, and laid the groundwork for the implementation of biomethane guarantees of origin and the creation of a dedicated register.
The law allows biomethane producers to inject gas into the transmission and distribution networks, as well as to use it as motor fuel. It is designed to stimulate the production and use of biomethane in Ukraine, expanding its potential applications.
In March 2024, the Verkhovna Rada adopted another bill, developed with the active participation of the Ministry of Energy, which unlocks biomethane exports and will foster further development of the sector.
The development of biomethane production will attract international investment in Ukraine's energy sector, support the recovery of regions using modern technologies, enable true energy independence for communities, regions, and the country as a whole without harming the environment, and contribute to meeting Ukraine’s international decarbonization obligations.
The Ministry of Energy, together with other stakeholders, is working on creating the necessary legislative mechanisms for the development of alternative gaseous fuels, enabling Ukraine to realize its renewable low-carbon gas potential.
The development of alternative gaseous fuels is viewed as an effective tool to reduce import dependency, lower greenhouse gas emissions, improve the environmental situation, and meet both national energy action plans and international obligations, while also creating new jobs.
