Due to an unresolved export issue, Ukrainian biomethane producers are shutting down their production.

According to the top manager at Gals Agro, the cost of biomethane production in Ukraine is over €600 per 1,000 cubic meters, often in the range of €800–€900. In comparison, natural gas costs approximately €350 per 1,000 cubic meters.

Currently, the production capacity of biomethane in Ukraine is six million cubic meters per year — three million cubic meters each at the Gals Agro plant in the Chernihiv region and the Vitagro facility in the Khmelnytskyi region.

According to a company representative, it makes no sense to produce biomethane for the agricultural holding’s internal needs, even in the presence of free biomass. Under current conditions, using energy derived from fossil fuels is much more profitable.

The installation at Gals Agro will start working immediately after the opportunity to sell biomethane to Europe opens, where buyers are ready to pay €900-€1,200 per thousand cubic meters for it. This requires settling the customs clearance issue of transporting biomethane abroad.