Where biogas is used: areas of application and examples

The war has changed attitudes towards energy. The stability of centralised networks is no longer taken for granted.  Blackouts, gas supply risks, and rising costs have highlighted the need for local and controllable energy sources. One such solution is biogas, which already provides heat and electricity where it is critically important.

Biogas is a gas mixture (50–65% methane) obtained as a result of methane fermentation of organic waste in an oxygen-free environment. It is produced in special plants — biogas plants (BGP) — using manure, litter, silage, plant residues, food and industrial organic waste.

In this article, the Pro-Energy team will explain how and where biogas is used, which industries benefit most, and what practical examples are already in operation in Ukraine.

Main areas of biogas use

Biogas production covers four main areas: 

• production of biomethane as a substitute for natural gas or an alternative fuel for transport (an area that is only just developing in Ukraine);
• conversion of biogas into electricity and heat through cogeneration;
• direct heating of industrial and municipal facilities with biogas; 
• use in industrial technological processes. 

Each of these areas has its own economics, technical characteristics and inherent payback periods.

Production of biomethane to replace natural gas or as fuel for transport

Biomethane production involves purifying biogas from CO2 in a biomethane plant, resulting in an increase in methane content from 55–65% to 95–98%. The resulting biomethane is completely analogous to natural gas in terms of its physical and chemical characteristics, which allows it to be fed into the gas transmission system, used as CNG (compressed natural gas) for cars, or liquefied into bio-LNG for trucks.

There are several technologies for purifying biogas, but we use proven membrane separation. Biogas under pressure passes through semi-permeable membranes that allow CO₂ to pass through faster than methane. As a result, carbon dioxide is separated, and the CH₄ concentration in the product stream reaches 95–98%, which meets biomethane standards.

Example:

According to the Ukrainian Bioenergy Association (UABIO), the first commercial biomethane plants were launched in Ukraine in 2024–2025. Among the announced projects are the production of pipeline biomethane and Bio-LNG with a total capacity of over 90 million m³ per year. Part of the production is intended for export to EU countries through the sustainability certification mechanism (ISCC) and the use of the Ukrainian gas transmission system.

In EU countries, biomethane is actively used not only as a substitute for natural gas, but also as a motor fuel in CNG and bio-LNG formats. At least Scania and MAN are mass-producing trucks and buses powered by compressed and liquefied biomethane with a capacity of up to 460–500 hp, which are already being used in urban and interurban transport in Germany, Sweden and the Netherlands. 

Biogas for electricity and heat production (cogeneration)

Biogas cogeneration is the most common method of biogas utilisation in Ukraine. A gas piston engine generates electricity, while heat from the cooling and exhaust gas systems is used for heating and technological needs at the biogas plant.

The efficiency of cogeneration plants reaches 80–90%, with approximately 40% of energy converted into electricity and 40–50% into useful heat. Today, we are planning to install cogeneration plants at all the biogas plants we are designing in order to ensure an uninterrupted source of electricity and heat for the technological needs of biogas production.

The main advantages of biogas cogeneration are the possibility of creating an energy island not only for BSU, but also for nearby enterprises. And unlike solar and wind installations, cogeneration plants operate 24/7, provided that raw materials are available.

Pro-Energy case study (Chernihiv region)

An agricultural enterprise in the Chernihiv region has commissioned a biogas plant on a corn silage with cogeneration units with a total electrical capacity of 3.12 MW. Biogas is used for the simultaneous production of electricity and heat, which ensures stable generation of “green” energy and diversification of the enterprise’s income. 

Biogas as fuel for boiler rooms and heating

Biogas for heating is the simplest and cheapest way to use it, with minimal investment. 1 m³ of biogas is equivalent to 0.6 m³ of natural gas and provides 5–6 kW/h of thermal energy.

What biogas is used for in this area:

• heating of livestock buildings, poultry houses, piggeries;
• annual heating of greenhouses;
• hot water supply in production.

The efficiency of biogas boiler houses reaches 90–95% — almost all of the fuel energy is converted into heat. The payback period for the installation depends on its capacity and is slightly longer than for cogeneration, as there is no profit from electricity production.

Use of biogas in industry

The use of biogas in industry is focused on the production of steam and process heat for processes requiring high temperatures.

Main sectors:

Food industry:

• dairy plants — pasteurisation, sterilisation (temperature 80–140°C);
• meat processing plants — cooking, smoking, sterilisation;
• canning factories — heat treatment of products;
• drying grain and feed at elevators;
• breweries and distilleries: brewing wort requires a stable source of steam, and processing organic waste simultaneously solves the problem of processing production waste.

For more information on preparing raw materials, please refer to the article “How to prepare raw materials for a biogas plant”.

Use of biogas by sector

Biogas in agriculture dominates the Ukrainian market. 85% of all biogas plants operate on agricultural enterprises. This is explained by the availability of raw materials, the need to process organic waste and the simultaneous need for electricity and heat.

Livestock farms (cattle, pig and poultry farms) can use manure and litter as raw materials for the production of biomethane or electricity and heat. The energy obtained is sold on the energy market and supplies the main enterprise, while the digestate, after processing, is used as organic fertiliser, thus closing the cycle of resource use on the farm.

In greenhouse complexes, bioenergy solutions provide stable heating throughout the year by producing electricity and heat from biogas. When producing biomethane, an additional advantage for greenhouses is the use of CO₂, which is formed during the biogas purification process and can be used to stimulate plant growth and increase yields.

In crop production, agricultural biomass — silage, straw, pomace, tops and other plant waste — is used as raw material for biogas. Their processing allows for the effective utilisation of production residues and significantly reduces energy costs, thereby increasing the economic efficiency of the farm.

Food industry

Food industry waste has high biogas potential and can provide energy for primary production.

Sugar and oil extraction enterprises

Raw materials for biogas production:

• pomace;
• molasses;
• industrial effluents;
• meal;
• husks.

Alcohol and bioethanol plants

Raw materials for biogas production:

• at the bar.

Meat processing plants and slaughterhouses

Raw materials for biogas production:

• blood;
• skin;
• flotation grease;
• remnants of entrails.

Public utilities

• Wastewater treatment plants. Wastewater sludge is converted into biogas, which covers part of the energy consumption of the treatment plants themselves.
• Solid waste landfills. Collecting landfill gas helps cut methane emissions and generate electricity. These days, there’s more and more interest in projects that sort the organic part of household waste and then turn it into biogas.

Advantages of using biogas

The use of biogas has a comprehensive effect — energy, economic and environmental:

• Energy independence: own production of electricity and heat 24/7, independent of centralised networks and their stability.
• Savings: reduction in electricity costs by 40–100%, heating costs by 50–80%. Projected energy costs for 10–15 years in advance.
• Additional income: sale of surplus electricity at market prices; use or sale of digestate as organic fertiliser.
• Circular economy: a closed production cycle — waste becomes a resource, resources become energy, and energy becomes profit.
• Environmental friendliness: 60–90% reduction in CO2 emissions compared to fossil fuels. 1 MW of a biogas power plant reduces emissions by 4,000–5,000 tonnes of CO2 per year.
• Waste disposal: manure, litter, crop residues and food waste are converted into energy and fertilisers.

Limitations and challenges of biogas use in Ukraine

Despite the advantages, companies using biogas face real barriers:

High initial investment. The cost of a biogas plant is from €2.5 million per 1 MW of installed capacity. For small businesses, this is critical without state support or preferential lending.

The need for a stable raw material base. Biogas production requires daily loading of raw materials into fermenters, which is not a problem for farms, but due to seasonality, crop production requires additional capital investment for storage and preservation.

Need for qualified personnel. Biogas complexes are highly functional biotechnological facilities with living microorganisms that cannot be shut down instantly and require intelligent care and approach. Specialists who understand the biochemistry of the methane fermentation process are needed, not just technicians and operators.

Following widespread destruction of energy infrastructure, biogas plants are seen as one of the key tools for recovery and improving energy security. The implemented projects of biogas by Pro-Energy confirm the practical reliability of this technology, as our facilities continue to produce energy steadily even during blackouts, providing critical infrastructure.

Conclusion

Biogas solutions have long gone beyond the experimental stage and are now an integral part of modern business energy systems. Flexibility of use, predictable economics, and the possibility of local generation make biogas an effective tool for companies planning long-term energy independence.

For companies with access to organic raw materials, biogas is becoming part of a sustainable business model with cost and risk control. That is why bioenergy is gradually transitioning from an alternative to a basic energy solution.

Want to assess the potential of biogas for your business? The Pro-Energy team will analyse your raw material base, calculate the project’s economics and suggest the optimal configuration for your plant. Contact us for a consultation — we will turn your waste into profit and energy independence.

Frequently asked questions (FAQ)

Can biogas be used instead of natural gas?

Yes, biogas can be used instead of natural gas for heating and even for cooking. 1 m³ of biogas is equivalent to 0.6 m³ of natural gas. Before biogas can be used, it must be purified to remove hydrogen sulphide and moisture, otherwise equipment corrosion may occur.

How much electricity can be generated from 1 m³ of biogas?

From 1 m³ of biogas, a cogeneration plant produces 1.7–2.3 kWh of electricity and 2–2.5 kWh of thermal energy. The specific indicators depend on the methane content in biogas (50–65%) and the technical condition of the equipment. In the case of direct combustion in a boiler, we obtain 5–6 kWh of heat.

Is it profitable to use biogas for a small farm?

The economic feasibility of using biogas appears with 1,000–1,500 head of cattle or 4,000 head of pigs. For smaller farms, we recommend calculating the payback period, taking into account local energy prices and the possibility of cooperating with neighbouring farms to set up a joint biogas plant.

What types of waste can be used for biogas production?

Any organic waste and by-products of animal husbandry or crop production are suitable: manure and animal litter (cattle, pigs, chickens), plant residues (straw, tops), energy crops (silage of any crops), food waste (vegetable trimmings, bread waste), sewage sludge, food industry waste (pomace, distiller’s grains, whey). The best results are achieved by fermenting a mixture of different types of raw materials — so-called co-fermentation — which stabilises the process and optimises certain operating costs.

Are permits required for the use of biogas in Ukraine?

The production of biogas and biomethane requires registration of the alternative energy facility with the State Agency for Energy Efficiency. 

Licence for electricity / gas production: a licence from the National Energy and Utilities Regulatory Commission (NEURC) is required to operate biogas plants (BioES) and sell energy.

• Technical permits: permits are required from the State Labour Service (operation of hazardous facilities), the State Emergency Service (fire safety) and the environmental inspectorate.
• Use of biomethane: purified biogas (biomethane) fed into the grid requires separate certification.