Biogas Plants: the Key to Environmental Development and Economic Growth in Ukraine

22.02.2024

The construction of biogas plants is not only a significant step in the development of environmental technologies and the replacement of natural gas. Investments in this global direction for Ukraine will create new jobs and contribute to the development of other industries.

VITAGRO has already invested 6 million euros in the construction of a biogas plant and is ready to export biogas to Europe. The project will generate 3 million cubic meters of biogas annually, as well as millions of hryvnias in taxes per year, bringing foreign currency revenue to Ukraine during wartime!

In addition to biogas production, the plant plans to produce organic fertilizers: the annual volume of fertilizers will exceed 80,000 tons, which will reduce the use of mineral fertilizers on an area of 1500 hectares and replace imported mineral fertilizers.

In addition to processing livestock and crop waste, the biogas project adds value, diversifying agricultural businesses and expanding export channels for Ukrainian producers.

Today, the biogas production capacity in Ukraine amounts to 6 million cubic meters per year - 3 million cubic meters per year at VITAGRO in the Khmelnytsky region and 3 million cubic meters per year at the "Gals Agro" plant in the Chernihiv region. During 2024-2025, the opening of up to 10 new facilities with capacities ranging from 3 to 60 million cubic meters is planned. This will create an additional 500 temporary and 150 permanent jobs.

However, on the path to the full implementation of the project, we face the problem of regulatory uncertainty. The absence of a relevant law on unlocking the export of biogas has led to the closure of plants and the dismissal of highly qualified workers. This situation has already negatively affected other companies planning to invest in this market.

To address the negative consequences and ensure the stable development of the biogas industry in Ukraine, it is necessary to immediately adopt the corresponding legislative document in the second reading (Draft Law on Amendments to the Customs Code of Ukraine regarding the customs clearance of biogas No. 9456). This will enable us to rehire workers with experience in construction and management of similar projects and create conditions for further development of this promising industry.

Solving this problem is important not only for companies that have already invested in biogas plants but also for the entire agricultural sector and the country's economy as a whole.

Therefore, we hope for the industry's support and prompt adoption of the bill on unlocking biogas exports in the near future.