Potential of Ukraine’s agricultural sector for biomethane production

Amid the energy challenges of 2025, biomethane is becoming not only a promising type of fuel but also a strategic element of Ukraine’s future energy independence. In this process, the agricultural sector is one of the key drivers of change. Pro-Energy, a company implementing energy projects based on biogas and biomethane solutions, notes that biomethane is not just a trend — it is a well-grounded response to modern challenges in the economy, energy, and agro-industrial complex.

What is biomethane and why the agricultural sector is the key base for its production

Biomethane is purified biogas obtained through the anaerobic digestion of organic raw materials. Its chemical composition and calorific value are equivalent to those of natural gas. This allows it to be injected into the gas transmission network or used on-site — to power transport, provide heating, or generate electricity.

The agricultural sector produces biomethane from what was once considered waste. This creates a double effect: reducing environmental impact while generating new economic value.

How much biomethane can Ukraine’s agricultural sector produce

According to estimates by the Ministry of Energy and the Bioenergy Association of Ukraine, the potential of the agricultural sector for biomethane production reaches 7.8 billion m³ per year, which is nearly one-third of Ukraine’s total natural gas consumption. The use of cover crops, which do not compete with food production, can expand the raw material base to 20 billion m³ per year — under an optimistic scenario for 2050.

This is a strong example of biomethane production based on local resources, independent of imported energy carriers. It is not only about technology but also about a comprehensive transformation of the energy consumption model within the agricultural sector.

Feedstock: what exactly provides the potential

The main sources for biomethane production are agricultural waste and raw materials. The largest contribution comes from:

• Livestock waste — cattle manure, pig slurry, poultry and turkey litter.
  

• Crop residues — straw and other plant residues. Biomethane from such raw materials is considered “green” and is in demand in the EU.
  

• Agro-waste and silage — corn silage, sugar beet pulp. This type yields a high amount of biomethane but cannot be exported to the EU.
  

• Cover crops (intermediate crops) — off-season green biomass that can be silaged and used as feedstock for biogas production. Such biomethane can be exported, although the “green premium” will be lower than for waste-based biomethane, and production costs will be higher since the biomass yield is lower than that of traditional silage crops.

All these components serve as feedstock for biogas units, biogas plants, or biogas factories.

Geography of biomethane production in Ukraine

The biomethane potential across Ukraine’s regions, based on agricultural raw materials of animal and plant origin, is unevenly distributed. The highest resource potential is concentrated in:

• Vinnytsia region — due to the operation of existing biogas plants based on large agricultural holdings.
  
  
• Kyiv, Khmelnytskyi, Poltava, Dnipropetrovsk, and Zhytomyr regions — characterized by a high density of agricultural production, waste availability, and existing infrastructure.
  
  
• Other regions, such as Ternopil, Cherkasy, Ivano-Frankivsk, and Lviv, where biogas plants have already been built on operating farms or poultry complexes.
  
  
• Occupied and frontline regions, including Zaporizhzhia, Luhansk, Donetsk, parts of Kharkiv and Kherson regions, possess significant potential but are currently unable to realize it.

In fact, only the first three groups of regions form the core for launching new projects. In the western and southern regions, the resource base is more dispersed, which complicates logistics and implementation, thereby influencing the overall geography of biomethane production in Ukraine.

Cost of biomethane production: economics and challenges

The price (as well as the cost) of biomethane production varies depending on the source of feedstock, infrastructure, technology, and logistics. The average biomethane price ranges from €400 to €1200 per 1000 m³.

• The least expensive production method is from manure and wastewater — the yield per ton of raw material is small, but the feedstock is almost free, and biomethane from such sources receives the highest green premium.
• The most expensive is biomethane produced from silage, as it requires cultivation, machinery, and currently cannot be exported.

On the other hand, the cost of biomethane production can be offset by export potential, market gas prices, and the possibility of internal consumption (without tariffs or losses).

At the same time, the industry faces a number of barriers and limitations:

• Lack of a full-fledged biomethane certification system.
  
• Limited access to the gas transmission system (GTS) and infrastructure for biomethane injection.
  
• High levels of capital investment required.
  
• The impact of war: risks of logistics disruption, instability in raw material supply, and limited access to equipment.

That is why, before launching a project, it is essential to conduct a detailed assessment. The question “How to prepare feedstock for a biogas plant?“ is one of the key inquiries currently addressed to Pro-Energy.

Prospects for 2030–2050

In the National Energy Strategy and decarbonization plans, the agricultural sector is seen as a key driver of renewable energy development. According to forecasts:

• By 2030: production potential could reach 1 billion m³ per year.
• By 2050: it may reach 20–22 billion m³ per year, fully covering the domestic gas demand.

Innovative technologies, new solutions for biogas production from agricultural raw materials, digital control systems, and the use of intermediate crops are shaping a new wave of industry scaling.

• Modern fermentation equipment — including advanced mixing systems in bioreactors and new pre-treatment technologies — enables processing a wider range of agricultural waste, reduces feedstock losses, and increases biogas yield per unit of biomass.
• The implementation of digital control systems — such as SCADA systems, IoT monitoring, and automated fermentation parameter control — enhances process stability, reduces the need for manual intervention, and optimizes costs. This allows agribusinesses not only to lower production costs but also to reach the level of industrial-scale biomethane production.
• Intermediate crops add a new resource to the agricultural production structure without affecting the main harvest. They can be used as feedstock for biogas production from agricultural biomass without competing with the food sector. At the same time, biomethane produced from such crops meets European sustainability criteria, opening export opportunities.

All of this significantly simplifies the launch of biogas plants — both technologically and economically. There is no longer a need for excessive resource concentration or complex logistics — modern tools enable project deployment across various regions of Ukraine, targeting both domestic consumption and export.

Beyond the internal market, increasing attention is being paid to export opportunities — the EU is already accepting biomethane, with the first deliveries from Ukrainian producers expected in 2025. Thus, launching a biogas plant is not only a matter of energy production but also a step toward a new business model.

Conclusions

Ukraine’s agricultural sector has all the prerequisites to become one of the leaders in the European biomethane market.

Pro-Energy focuses on enabling the implementation of the final product in the European market — we accompany biogas plants from concept to completion, conduct feedstock potential assessments, provide engineering and equipment supply, offer technical services, advise on export sales, and establish cooperation with traders.

Order a consultation to assess your enterprise’s feedstock base and find out how you can join biomethane production today.

Also, read our analytical article: “10 Most Common Questions About Biogas Plants“.