Ukraine adopts roadmap to become major biomethane supplier to Europe
On 22 April 2026, the Cabinet of Ministers of Ukraine (CMU) adopted Resolution No. 514, approving the Programme for the Development of Biomethane Production for the Period until 2035 (Programme) and the operational plan for its implementation (Operational Plan).
The Programme is intended to create the regulatory, institutional and investment conditions necessary for accelerating and scaling up biomethane production in Ukraine, integrating the Ukrainian biomethane market with the EU market for renewable gases, and supporting Ukraine’s energy security and decarbonisation agenda.
The official text of the Programme is available at this link.
Background
Ukraine’s biomethane sector has emerged as one of the fastest-growing segments of the renewable energy market, driven by EU demand for renewable gas, regional energy security concerns and Ukraine’s strong agricultural base.
The end of russian gas transit through Ukraine in January 2025 further accelerated the search for alternative and sustainable energy sources across the region. Ukraine is also well positioned to become a strategic supplier of renewable gases to Europe, offering investors significant opportunities in biomethane production, infrastructure and related value chains. According to research by the Bioenergy Association of Ukraine, Ukraine’s biomethane production potential is estimated at up to 21.8 billion cubic metres per year. Ukraine also benefits from an extensive gas transportation and storage infrastructure that is connected to European markets, which creates strong export potential for biomethane producers.
The Programme’s key points
The Programme confirms Ukraine’s intention to develop biomethane as a strategic component of the national energy transition. Its objectives include:
- creating a domestic and external biomethane market;
- expanding production capacity;
- processing agricultural waste and residues;
- attracting investment into the Ukrainian biomethane sector; and
- stimulating domestic biomethane consumption.
Achieving the Programme’s objectives is expected to:
- reduce imports of natural gas and electricity;
- increase Ukraine’s energy independence;
- develop the agricultural sector by diversifying the processing of agricultural products and related waste;
- attract investment into renewable energy;
- create new jobs, particularly in rural areas; and
- support Ukraine’s fulfilment of its international climate commitments.
Importantly, Ukraine’s existing gas transmission and storage infrastructure, combined with direct interconnections to EU member states, is expected to support exports of Ukrainian biomethane to Europe once the relevant regulatory and recognition issues are resolved.
Strategic targets and market potential
According to the Programme, Ukraine possesses significant agricultural feedstock potential and if the relevant conditions are met, Ukraine could produce approximately 2.1 billion cubic metres of biomethane per year.
The Ukrainian Government expects biomethane production to increase from its current installed capacity to more than 1 billion cubic metres per year by 2030 and approximately 2.1 billion cubic metres per year by 2035.
The Programme identifies Ukraine’s extensive gas transmission system and its physical connections with EU member states, which are expected to support the export of Ukrainian biomethane to the EU once the relevant regulatory and recognition issues are resolved.
Implementation stages
The Programme is designed to be implemented in three stages:
Phase I (2026–2027): Foundation and regulatory alignment
Creation of the legislative and institutional basis for the biomethane sector, including amendments to renewable gas legislation, rules on natural gas quality, state-support mechanisms, guarantees of origin and Ukraine’s access to the EU’s Union Database for renewable and recycled carbon fuels.
Phase II (2028–2030): Scale-up and investment mobilisation
Expansion of production capacity, construction of new biomethane plants, connection to the national gas transmission system and deployment of financial instruments to attract investors, alongside continued alignment of Ukrainian legislation to EU law.
Phase III (2031–2035): Market maturity and export growth
Further scaling of production, expansion of exports to EU member states, technological improvements, introduction of a national certification framework and review of strategic targets vis-à-vis evolving EU climate and energy policies.
Operational Plan: key measures
The Operational Plan sets out measures across three main policy objectives: building the legal framework for domestic and external biomethane markets, stimulating production capacity and investment, and encouraging domestic consumption.
- Regulatory and EU-market integration measures: EU Commission consultations on the Union Database, biomethane traceability, mutual recognition of guarantees of origin, gas quality rules, regulation of biomethane as fuel and development of a national certification scheme.
- Investment and production measures: international financial institutions, donor and grant-funding support and improved coordination of responsible authorities.
- Domestic demand measures: information campaigns on emission reductions and promotion of Ukraine`s biomethane production and consumption potential.
Expected results
According to the Programme, eight additional biomethane plants will be commissioned in 2026-2028, significantly increasing projected biomethane production capacity.
It also anticipates that private and international investment in biomethane production, transportation and consumption projects may exceed EUR 500 million by 2030.
For investors and market participants, the Programme may create new opportunities for agricultural producers, project developers, gas market participants, industrial consumers, transport-sector participants and investors in renewable gases.
At the same time, successful implementation will depend on further regulatory changes, access to EU systems for traceability and guarantees of origin, recognised certification mechanisms, grid-connection procedures and bankable-support instruments.
Existing biomethane plants
As of May 2026, six biomethane plants are in operation in Ukraine with a total installed capacity of more than 108 million cubic metres per year.
The rapid growth from pilot projects to commercial-scale facilities demonstrates the sector’s increasing maturity and growing investor interest.
The table below provides an overview of biomethane plants operating in Ukraine as of May 2026.
Table. Biomethane plants operating in Ukraine as of May 2026
Beyond the operating plants listed above, Ukraine has an active pipeline of biomethane projects at different stages of development, creating potential entry points for strategic investors, lenders, technology providers and offtakers. As the regulatory framework matures and export routes to EU markets become more accessible, the sector is expected to generate further bankable opportunities for investment in production, grid connection, storage, certification and cross-border trade.
Conclusion and next steps
The adoption of the Programme is an important step in the formation of Ukraine’s biomethane market and in the alignment of that market with the EU renewable gases framework.
For businesses, the Programme provides the clearest signal to date of the Ukrainian Government’s long-term commitment to biomethane as a strategic industry and export.
Businesses active in energy, agriculture, infrastructure, transport and industrial decarbonisation should monitor the implementation of the Operational Plan, assess potential eligibility for financing or support mechanisms, and consider how forthcoming rules on certification, guarantees of origin, gas quality, grid connection and EU traceability may affect their projects and contractual arrangements.
For more information, contact CMS experts:
