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30 min ago 3 min read
Two Ukrainian agribusinesses have unveiled plans to invest more than $51m (€43.7m) in four new biomethane plants.
The investments come as Ukraine’s biomethane sector gathers pace following its first exports to the EU in 2025. The country is widely viewed as one of Europe’s most promising future producers due to its vast agricultural sector, extensive gas infrastructure and direct pipeline connections to EU markets.
Vitagro Energy will develop three facilities across the western regions of Ternopil, Khmelnytskyi and Rivne, while KG Group is planning a fourth plant in the central Poltava region.
Vitagro’s three plants will produce a combined three million cubic metres (mcm) of biomethane annually. The facilities will also generate around 66,000 tonnes of liquid and solid organic fertiliser each year, alongside 0.4 MW of electricity for on-site consumption.
The company expects the programme to cost $35.9m (€30.7m). More than $17.7m will be funded internally, with the remainder expected to come from equity and project finance.
Feedstock will be sourced from livestock waste generated across the wider Vitagro Group, with the resulting biomethane primarily destined for export to European markets.
Construction of each facility is expected to take around two years. Once operational, each plant is forecast to generate annual revenues of between $3.7m and $5m.
Separately, KG Group plans to invest $15.7m (€13.4m) in a biomethane facility in the Poltava region.
The company will contribute $7.1m of its own capital while seeking external investment to finance the remainder of the project. Agricultural waste from nearby farming operations will be used as feedstock for the plant.
The announcements build on a sector that remains in its early stages but is expanding rapidly.
According to the International Energy Agency (IEA), seven biomethane plants were operating in Ukraine by March 2026 with a combined production capacity of 111 mcm per year, while a further five facilities are expected to come online during 2026.
Ukraine’s government has set a target of producing one billion cubic metres (bcm) of biomethane annually by 2030, rising to 2.1 bcm by 2035, as it seeks to strengthen energy security, reduce reliance on imported natural gas and expand renewable gas exports to Europe.
The IEA estimates the country has around 11.6 bcm of annual biomethane production potential from agricultural waste and residues alone – the largest feedstock resource in Europe.
