Aivaras Abromavicius: Biomethane from Ukraine is of strategic importance to Europe
21. 06. 24
Ukraine has significant potential in the production of biomethane, a product in high demand in Europe due to market shortages. This is why the development of biomethane was a key topic of discussion during the International Ukraine Recovery Conference (URC2024).
This was highlighted by Aivaras Abromavicius, Chairman of the Supervisory Board of Agro-Region.
He also reminded that in the spring, the Verkhovna Rada passed the draft law No. 9456 on customs control and clearance of biomethane transported via pipelines across Ukraine’s customs border. Therefore, the “biomethane ball” is now in the EU’s court, as they need to allow the import of Ukrainian biomethane.
“During the event, several potential importers noted that the capacity of Ukrainian companies already ready to export biomethane is insufficient to meet Europe’s demand. Clearly, new players will enter the market, and Ukraine will likely find its place and become a powerful supplier of ‘green gas’ to Europe,” said Aivaras Abromavicius.
According to him, Agro-Region has been studying this topic for several years, but the company lacks sufficient raw materials, relying only on plant residues. Therefore, they do not rule out partnerships with livestock farms in the future.
“We are exploring support programs for new construction that will be backed by the state, as well as insurance tools against military risks. This was also a relevant topic during URC2024, as it is challenging to build new facilities when there is a risk of their destruction,” added the Chairman of the Supervisory Board of Agro-Region.
Speaking about other key topics discussed at the conference, Aivaras Abromavicius highlighted financial support, energy resilience, and the provision of new air defense systems.
“Expectedly, the focus was on obtaining additional air defense systems from our partners. Secondly, everyone discussed the energy supply situation, how to get through the winter, and what to do with further financing, especially during upcoming elections in important partner countries, including the USA and France. The answer to this question lies in Ukraine’s use of frozen Russian assets, with interest income potentially amounting to $50 billion. I hope Ukraine will receive them in the coming months,” said Aivaras Abromavicius.
He noted that partner countries understand that Ukraine can continue to defend its sovereignty and territorial integrity only with the help of partners and when the country’s economy is functioning. And for the economy to function, financing is necessary.
The IFC and the EBRD, in turn, assured that they would continue to support the private sector, with the latter allocating €60 million to finance a bioethanol plant and an even larger sum for the construction of a large wind energy park in western Ukraine. Additionally, European Commission President Ursula von der Leyen announced an increase in EU budget funding to direct investment funds focused on Ukraine. This means we will soon learn about the launch of new funds that will invest in the equity capital of Ukrainian companies. And it’s good that Horizon Capital will have new colleagues.