Vitagro seeks $23 mln to build three biomethane plants

Vitagro Energy, part of the Vitagro group, plans to build three biomethane plants in Khmelnytskyi, Ternopil and Rivne regions. The total project budget is estimated at $35.9 million, according to the Ukraine Investment Framework investment catalogue.

Once operational, the facilities will have a combined annual biomethane production capacity of 3 million cubic metres. The project also includes a 0.4 MW power generation unit to meet the plants' internal electricity needs and the production of around 66,000 metric tons of liquid and solid organic fertilisers annually as a by-product.

The plants will use organic waste from livestock farms and other feedstock sources. The production process will be based on anaerobic digestion followed by biogas upgrading to biomethane.

The total investment is estimated at $35.9 million. Vitagro plans to contribute $17.7 million from its own funds while seeking to raise an additional $23.6 million through a combination of equity investment and project financing.

The project is currently at the feasibility study stage, while land plots for the facilities have already been leased.

According to the company, its team has extensive experience in biogas and biomethane projects and aims to build a portfolio of six to seven biomethane plants. Over the past year, Vitagro has completed geological and geodetic surveys, and the project is now in an active development phase.

Construction is scheduled for 2027–2028, with commercial operations expected to begin in 2028. Europe will be the primary export market for biomethane.

In June, Vitagro and Agroprodservice signed a memorandum to develop five electricity, biogas and biomethane projects in Ternopil and Khmelnytskyi regions. Total investment is estimated at €40 million, with the facilities expected to produce around 15 million cubic metres of biomethane annually.

The first stage of the partnership will focus on preparing feasibility studies, after which the companies plan to move forward with project development and financing.