VITAGRO supplies first Ukrainian biomethane to Ukraine’s GTS with daily volume of 6,000 cubic meters

 The VITAGRO Group of Companies with assets in the agricultural, energy, processing, construction and chemical industries, together with specialists from the Khmelnytsky branch of Gas Distribution Networks of Ukraine LLC, for the first time supplied biomethane to the Ukrainian gas transmission system (GTS), which will launch the export of Ukrainian biomethane, the group reported.

"The team of VITAGRO ENERGY, together with specialists from Gas Distribution Networks operator, successfully ensured the first launch of biomethane, and gas has already begun to flow into the gas transmission system. This is the first and only such experience for the entire energy sector of Ukraine," its press release states.

According to it, during the initial days of operation, the biomethane production plant operates at 60-70% of the planned capacity, and the daily volume of gas entering the gas distribution networks is approximately 6,000 cubic meters.

"The plant may reach full capacity by the end of October 2024. At the same time, the VITAGRO group of companies is working to establish biomethane exports. The company already has all the necessary permits and as soon as it accumulates sufficient volumes in gas storage facilities, it will immediately be able to start selling biomethane to foreign buyers," the company explained.

According to the head of the renewable energy department of the VITAGRO group, Volodymyr Ivakhiv, if the procedure works correctly, then in November it will be possible to talk about the first experience of exporting Ukrainian biomethane.

"We also expect that this will be a significant step towards harmonizing the domestic and European biomethane markets, similar to the electricity market. We are currently taking the first steps – in addition to setting up the plant itself, active work is underway with the operators of the GTS, Gas Distribution Networks, Ukrtransgaz, the supplier of the technology to work out all the procedures, interaction between the companies. I would also like to note the coordinated work of all market participants, partners and employees of the company, who made incredible efforts to make this event happen," Ivakhiv noted.

The release indicates that the VITAGRO group began building the biomethane plant in 2022, after the full-scale invasion of Ukraine, and the first launch of biomethane as part of commissioning work took place in the winter of 2024. The plant was forced to stand idle for six months due to the fact that the legislative issue of biomethane export was not resolved.

"The total investment in our biomethane plant is EUR 6 million. The group invested its own funds in it, and planned to return the investment in 5 years of full-fledged work. Now the deadlines are somewhat shifted due to the previous delay in state regulation of biomethane exports, but now that all the procedures have been developed and approved at the legislative level, we can more accurately predict our work and create new investment projects. In particular, we plan to attract foreign partners to such projects," commented Serhiy Savchuk, Director of Development and Investments of the VITAGRO Group of Companies.

VITAGRO will use both its own and purchased raw materials for the production of biomethane. First of all, this is livestock and crop waste. In addition to biomethane, the plant will receive hard and liquid digestate, which will be used by the company as organic fertilizers.