The huge potential of biomethane for our energy supply is often underestimated. The gas and hydrogen industry association Zukunft Gas and Zentrum Liberale Moderne have taken a closer look at the development potential of a German-Ukrainian biomethane partnership. Both sides would benefit greatly from such a cooperation. However, there are still a few hurdles to overcome on the way to a flourishing biomethane trade. A policy paper, which was presented on 12 October 2023, looks at the potential opportunities and obstacles of such a partnership.
Both Germany and Ukraine are aiming to achieve climate neutrality by 2050. Biomethane plays a role here that should not be underestimated. Biomethane has become indispensable in parts of industry and transport, but also in the supply of electricity and heat, while at the same time strengthening the resilience of the entire system. With its large agricultural areas, Ukraine has immense potential with regard to the efficient supply of large quantities of gas: it believes that 10 to 54 TWh can be tapped by 2030. In the long term, the total potential for biomethane production is estimated at up to 220 TWh - as soon as the war damage has been repaired. The majority of this energy could be obtained from agricultural residues.
Utilising the potential of biomethane would benefit climate targets
According to the REPowerEU plan, biomethane is also an important building block on the path to a climate-neutral European energy supply. Ukrainian biomethane producers see this as a promising business model. The decentralised production structures for biomethane also strengthen the resilience of the Ukrainian energy system. At the same time, the existing transport infrastructure offers a further advantage for a biomethane partnership. As a result of the sharp decline in Russian gas supplies, the pipelines between Ukraine and Germany are only utilised to a limited extent. In future, they could be used for the transmission of biomethane.
"In future, our energy supply will consist of green electricity and new gases", says Dr. Timm Kehler, CEO of Zukunft Gas. "New gases are renewable and decarbonised gases, such as hydrogen or biomethane. Cooperation with Germany can support Ukraine's integration into the European energy market. With its large agricultural potential, Ukraine sees biogas exports as a promising business model for strengthening its decentralised structures. This can contribute to Ukraine's economic success and at the same time make a significant contribution to climate protection. For a flourishing biomethane market, however, regulatory hurdles must first be removed in both Germany and Ukraine."
Adaptation of the framework conditions: Initial spark for a promising energy partnership
In order to enable the development of biomethane cooperation between Germany and Ukraine, the existing Ukrainian gas export moratorium must be lifted. On the European side, an agreement between the European Union and Ukraine on the recognition of mutual guarantees of origin is necessary as part of the implementation of the amended EU Renewable Energy Directive (REDIII).
Ralf Fücks, Director of Zentrum Liberale Moderne, which has been cooperating with Ukrainian partners for years: "Ukraine is fighting for Europe's security and freedom. At the same time, it is a potential pillar for the future supply of climate-neutral electricity, biomethane and hydrogen to the EU. And it already needs investment in a sustainable energy system for its own needs and for export. The production of biomethane in particular can be increased in the short term. We don't have to wait until the end of the war to do this. The German government and the EU must create the legal framework for this. Biomethane can become a successful model for the German-Ukrainian energy partnership."
You can find the policy paper here: https://h2-news.eu/h2bx/
