The main reason for the absence of a fully functioning biomethane market is the imperfection of the relevant legislation. The biogas industry is developing so rapidly all over the world that even the Law of Ukraine "On the Natural Gas Market" adopted in 2015 is already technically outdated. Therefore, two bills on the biomethane market have been submitted to the Verkhovna Rada for consideration.
Serhii Savchuk, Executive Director of Clear Energy Group, told about this in a comment for Kosatka.Media.
“The entire bioenergy sector requires legislation to create a market for biomethane. Now we already have two bills on the biomethane market: the one proposed by the government - "On amendments to some laws of Ukraine on the development of production and consumption of biomethane" and by MPs of the Verkhovna Rada - "On amendments to the Law of Ukraine on alternative fuels on the development of biomethane production," Savchuk told.
He explained that both bills provide for the creation of a biomethane register, a guarantee of origin and a certificate for biomethane. The guarantee of origin is transferred based on a contract for the sale of biomethane, and for sale outside the customs territory of Ukraine – based on certificates of origin and the corresponding records of the registers of the countries of sale.
One of the differences between the bills is that, according to MP Andrii Zhupanin’s version, biomethane is not only gas for pumping into gas networks, but also a motor fuel. This is particularly relevant because Ukraine spent almost $4 billion on oil and gas products imports in 2020.
The creation of a full-fledged biomethane market will provide the following benefits for the Ukrainian economy.
1. The launch of the biomethane market will allow the efficient use of landfill gas.
“Companies that work with biogas can now only burn it in internal combustion engines to produce electricity. And the creation of a biomethane market will make it possible to transport the produced gas – after purification and reaching the quality of natural gas – through the main and distribution gas networks. In other words, it will be possible to produce electricity from it, as well as heat, while replacing imported gas,” Savchuk explained.
2. It will promote the opening of an international biogas market for Ukrainian companies.
According to Savchuk, Europeans are ready to buy Ukrainian biomethane, the main thing is that its origin and quality are confirmed by certificates. And this will help to save financial reserves for the purchase of imported gas and will allow receiving foreign exchange earnings from degassing landfills and landfills.
“If we compare the submitted bills, then the one, initiated by MPs in an abbreviated form, has already been registered in the Verkhovna Rada. And this is the reason for having more chances to get the support of legislators. If the law on biomethane is adopted in the wording of MP Zhupanin, then most of its regulatory provisions will be spelt out in additional by-laws,” Savchuk said.
The government’s bill, developed and proposed by the State Agency on Energy Efficiency together with the Ministry of Energy and the Bioenergy Association of Ukraine, is more detailed, therefore, it will require a minimum of bylaws and will reduce the time for the full launch of the biomethane market in Ukraine.
Both bills are effective and urgent, according to the expert. The bill of Andrii Zhupanin has every chance of being adopted soon, which will accelerate the creation of the Ukrainian biomethane market. But the need to develop and agree on bylaws will take some time.
“We will step into a “green” future according to the roadmap of the MPs or the government, the main thing is to understand that the current biomethane market means foreign exchange earnings, environmental safety, new jobs, a decrease in energy dependence and an increase in the “added value” of Ukraine itself,” the expert summed up.
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