Ukrainian agribusiness groups plan four biomethane plants for EU exports

Vitagro Energy and KG Group on July 13 planned four biomethane plants worth more than $51 million, with all of the output aimed at European Union buyers. Vitagro would build three units in the Ternopil, Khmelnytskyi and Rivne regions, while KG Group would add one plant in Poltava region.

Vitagro’s three-plant cluster carries a $35.9 million tag in the Ukraine Investment Framework catalogue and is designed for 3 million cubic metres of biomethane a year, plus a 0.4 MW internal power unit and about 66,000 metric tons of liquid and solid organic fertilisers. The company expects to commit more than $17.7 million of its own capital, with the rest to come through equity and project finance. Each site could take about two years to build and generate $3.7 million to $5 million a year once at full capacity. Vitagro has also targeted 2028 for launch and is seeking $23 million in external financing.

The plants would run on livestock and agricultural waste from surrounding farms. Ukraine exported biomethane to the EU for the first time in 2025. The International Energy Agency puts the country in position to become one of Europe’s leading biomethane producers, helped by an existing pipeline network that could support scale-up.

Ukraine launched a national biomethane register in 2025 to track production, withdrawals, guarantees of origin and export flows. The register opens the way for large-scale exports to the EU and improves investment attractiveness. The European Union and Ukraine signed a memorandum of understanding on February 2, 2023, on a strategic partnership covering biomethane, hydrogen and other synthetic gases.

Vitagro’s first biomethane plant started production in September 2024, and it carried out the first biomethane export operation from Ukraine on February 7, 2025. MHP shipped the first Ukrainian Bio-LNG cargo to the EU on May 9, 2025, using poultry litter and other agricultural residues, while Gals Agro became the first in Ukraine to pump biogas into underground storage in 2024 and later used its own biomethane in sugar production.