Ukraineʼs Gals Agro Starts Biomethane Exports to Germany

Horodyshche-Pustovarivska Agricultural Company LLC (HOPAK), part of the Gals Agro Holding, exported its first batch of domestically produced biomethane to Germany, the consulting agency ExPro reported.

According to ExPro, the company exported nearly 71,000 cubic meters of domestically produced biomethane, stored in Ukrainian underground gas storage (UGS) facilities, to the German company Uniper. 

The gas was transmitted via Ukraine’s gas transmission system to Hungary and then delivered to the buyer.

HOPAK has become Ukraine’s third biomethane exporter, following in the footsteps of Vitagro, which launched the country’s first biomethane export on Feb. 7. MHP joined the export market shortly after, dispatching its first shipment on Feb. 11.

Gals Agro launched its first industrial-scale biomethane production in 2023 at the Lynovytsia biogas plant in the Chernihiv region.  In November 2024, the company began injecting biomethane into Ukraine’s UGS facility, preparing for future exports, ExPro reported.

How Ukraine started producing and selling biomethane

The European Union aims to produce 35 billion cubic meters of biomethane annually by 2030, but currently only produces 15 billion cubic meters. This scarcity creates opportunities for external suppliers, including Ukraine.

‘Ukrainian companies have already exported around 835 thousand cubic meters () of gaseous biomethane to Europe,  ExPro reported.’

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In February 2023, Ukrainian Prime Minister Denys Shmyhal and European Commission President Ursula von der Leyen signed a memorandum on strategic cooperation in biomethane and synthetic gases. Two months later, Gals Agro launched Ukraine’s first biomethane plant. 

However, in February 2024, the company suspended production. Natural gas exports were restricted due to Russia’s war in Ukraine, and selling biomethane domestically was unprofitable. 

Production costs range from €600 to €900 ($620-930) per 1,000 cubic meters, while the domestic gas price in Ukraine is about €350 ($362).

By late 2024, Vitagro and Hals Agro restarted biomethane production. In 2023, Vitagro built a €6 million ($6.2 million) plant in the western Ukrainian city of Khmelnytsky with a capacity of 3 million cubic meters per year. The company began injecting biomethane into the gas grid in October 2024, with Gals Agro following suit in November. 

In March 2024, Ukraine’s parliament, the Verkhovna Rada, clarified customs regulations for biomethane exports. 

Ukraine has recently discussed with the EU how to integrate its gas transmission system (GTS) to the European Database (UDB). This step would help Ukrainian producers enter the EU biomethane market more easily, ExPro reported.

The Ministry of Energy is finalizing a package of supporting documents that confirms biomethane exports already made.  According to the Ministry, these will form the basis for the EU’s assessment of Ukraine’s readiness to begin reporting within the UDB system.

According to ExPro, the European Database (UDB) is one of the key tools for ensuring transparency and traceability of renewable gas circulation in the EU.