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Fueling the Future: The Economic Relevance of Ukraine’s Biomethane Sector

Despite the ongoing war, Ukraine is actively pursuing recovery, economic stability, and a green transition. Biomethane production and export can play a pivotal role in these efforts, offering a sustainable energy source for both domestic use and the European Union.

Our policy brief, “Fueling the Future: The Economic Potential of Ukraine’s Biomethane Sector,” explores this opportunity in detail, highlighting how Ukraine’s vast biomethane production potential could generate significant export revenues, ranging from EUR 0.97 billion to EUR 1.24 billion by 2030.

Achieving this potential will require producing 1 billion cubic meters (bcm) of biomethane, which reduces GHG emissions by 2.5 MtCO2eq/year. To produce this estimated investments of EUR 2 billion are needed. Furthermore, establishing a national biomethane register is crucial for ensuring compliance with European standards.

On the EU side, policy adjustments are needed—particularly in Germany—where enabling Ukrainian biomethane to count toward the greenhouse gas reduction quotas, enhancing its marketability.

Our policy brief provides key insights into the economic and regulatory frameworks required to unlock Ukraine’s biomethane potential, positioning it as a critical element in both the country’s recovery and Europe’s green energy future.

You can access the full Policy Brief here.