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Biomethane vs. Electricity from Biogas: Raw Materials and Logistics Drive the Choice

by Roman Cheplyk
Thursday, April 17, 2025
2 MIN
Biomethane vs. Electricity from Biogas: Raw Materials and Logistics Drive the Choice

Ukraine’s burgeoning bioenergy sector faces a critical decision point: whether to convert biogas into biomethane for injection into the gas grid (or liquefaction) or to use it for on‑site electricity generation

According to Heorhiy Geletukha, Chairman of the Bioenergy Association of Ukraine, the optimal pathway hinges on the type of feedstock and the facility’s proximity to gas infrastructure—while state support programs remain underdeveloped, producers currently follow market signals and export prospects.


From Biogas to Biomethane

  1. Biogas Production:
    Feedstocks: Organic wastes such as chicken manure, livestock slurry, agricultural residues (straw, corn stalks).
    Composition: Roughly 55% methane and 45% carbon dioxide.

  2. Purification to Biomethane:
    Upgrading: Removal of CO₂ and impurities raises methane content to 97–98%.
    End Uses:

    • Injection into Ukraine’s gas network.

    • Liquefaction for transport and export.


Electricity Generation from Biogas

  • Direct Combustion: Biogas can fuel generators or combined heat and power (CHP) units on‑site.

  • Market Advantage: Rising electricity prices can make power production more lucrative—especially when biomethane prices track or fall below market gas rates.


Key Factors in Choosing the Pathway

  1. Feedstock Value:

    • Waste Materials: High‑value biomethane yields justify upgrading costs; producers can secure premium prices for clean renewable gas.

    • Dedicated Crops/Byproducts: For feedstocks like sugar beet pulp or energy maize, biomethane prices may only slightly exceed natural gas; electricity generation often offers better returns.

  2. Logistics & Infrastructure:

    • Proximity to Gas Grid: Facilities far from pipelines face prohibitive biomethane transport costs—favoring local electricity generation.

    • Access to Power Lines: Locations with grid connections can sell power directly, avoiding the complexities of gas transportation and injection.


Navigating a Program Gap

Despite strong market potential, Ukraine currently lacks targeted state programs to incentivize either biomethane or biogas‑to‑power projects. As a result, developers rely on:

  • Market Prices: Revenue forecasts for biomethane vs. power sales.

  • Export Opportunities: European demand for renewable gases and electricity.

  • Investment Outlook: Access to financing, carbon credit schemes, and private offtake agreements.


Outlook

To accelerate Ukraine’s bioenergy transition, Heorhiy Geletukha urges:

  • Clear Policy Frameworks: Dedicated support schemes for biomethane injection and biogas‑fired power.

  • Infrastructure Investments: Grants or guarantees for pipeline extensions and grid upgrades.

  • Feedstock Mobilization: Subsidies or logistics support to aggregate waste streams efficiently.

With raw materials and logistics as the decisive factors, a balanced approach—tailored to each project’s circumstances—will enable Ukraine’s bioenergy sector to thrive, delivering both green gas and renewable power where they make the most economic and environmental sense.

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