As a side event accompanying Ukraine Recovery Conference in London there was Razom We stand discussion on the potentials and challenges of Ukrainian Renewable Energy Sector. You can watch the full video of this event here:
I am working with Ukrainian market players for more than 15 years out of which last 5 years in the area of natural gas & renewable energy markets. I have a lot of friends among Ukrainians and at least some of them find to be also reliable trading partners.
It is understandable that to get full attention in the prevailing political risk/war with Russia times is not easy, however I can sign up to Razom we stand motto: Ukraine deserves support. Ukraine deserves hope. Ukraine deserves action.
Lets take then the example of the biomethane -decarbonisation potentials of Ukraine. The country has one of the biggest potentials of biomethane productions in Europe and can significantly contribute to European decarbonisation and independent/local biomethane and renewable energy production targets. According to Georgiy Geletukha from Ukrainian Biogas Association has enough feedstock and resources to produce up to 21.8 bcm of biomethane per year.
What can we do now even in the war times to increase the prospects of Ukrainian biomethane projects?
- European Commission/ ENER or ISCC has to clarify whether & how unsupported Ukrainian biomethane injected into gas grid certified via EC recognised voluntary scheme can reach EU consumers including transport sector. The main challenge is the Union database current set up as the UDB traceability system spans the EU. Can Ukrainian certified biomethane producer become EO for UDB? Do entire grids outside the EU comply with the definition of the EU integrated infrastructure? Clear statement is needed.
- Ukraine lacks experienced certification bodies – auditors that could work under EC recognised voluntary schemes´standards and certify Ukrainian biogas plants. On site visits and audits are very complicated in the war times, still some of the more western production sites can arrange relatively safe trips and on site visits for their ISCC auditors.
- Joint effort is needed with State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE) on further development of Ukrainian biogas register and the international transferrability (or at least cancellation possibilities) for guarantees of origin and harmonisation of systems with main EU biogas registries.
- Fair treatment of Ukrainian trading partners – owners of the projects. From some of my discussions with European biomethane traders i could hear the following: „We could buy Ukrainian biomethane subject to ISCC EU certification and its guaranteed accountability/eligibility in EU sectors, but only with big discount.“ If it is not cheap we are not interested in taking this big risk.
I am not saying that to offtake Ukrainian biomethane and import it to EU market is not a risky exercise. However in case we change our attitudes and start to work together on the risk mitigation measures and providing as much fair solutions for Ukrainian prospects as possible, then it shall be win – win for everybody.