Bioenergy – prospects for investment in Dnipropetrovsk region

As a result of Russia’s military aggression against Ukraine, our country lost
9 GW of electricity generation in 2024 alone. This makes the situation critical not only for energy-intensive industries but also for the operation of critical infrastructure. 

Ukraine has made the strategic decision not to restore fossil fuel power generation. To address the existing deficit in generating capacity in the post-war period, investments will be directed toward renewable energy. Ukraine’s goal is to quadruple its biofuel power generation capacity within 2–3 years through these investments.

Renewable energy has already become traditional in Dnipropetrovsk region. With an installed renewable energy capacity of 1,736.31 MW, the region is the absolute leader among Ukrainian regions.

By types of electricity generation from renewable sources, the following plants operate in Dnipropetrovsk region:

  • 6 bio-gas stations with a capacity of 28.24 MW
  • 1 Seredniodniprovska HPP with a capacity of 352 MW
  • 1 small hydropower plant with a capacity of 0.13 MW
  • 134 industrial SPPs with a capacity of 1135.94 MW
  • 7873 household SPPs with a capacity of 220 MW

The region is a leader in the number of installed solar power plants in private households. Additionally, two of the most powerful solar power plants in Europe serve as examples of successful investments in the region:

  • Nikopol solar power plant – 246 MW;
  • Pokrovska solar power plant – 323.29 MW,

which actually serve as balancing energy sources in the face of electricity generation shortages.

The existing biogas plants in the region are built on livestock complexes and are primarily focused on electricity production.

At the same time, when considering investments in biofuels, Dnipropetrovsk region maintains its leadership not only in energy generation but also in biogas production potential. The primary waste from agricultural enterprises—such as grain straw, rapeseed straw, and corn stover—can be utilized as key components of the energy potential for biogas production.

According to research conducted under the Municipal Energy Reform of Ukraine project, supported by USAID, primary waste from agricultural enterprises totalled 1949.42 thousand tonnes and was distributed as follows:

  • grain straw 676.47 thsd tonnes;
  • rapeseed straw 71.24 thsd tonnes;
  • corn production waste 483.14 thsd tonnes;

The sunflower oil production waste, which totalled 718.57 thsd tonnes, recycled by 100% and used both for heating and in the metallurgical production of ArcelorMittal Kryvyi Rih.

The energy potential of Dnipropetrovsk region based on primary agricultural waste is estimated at 650 thsd tonnes of fuel equivalent, or 500 mln m³ of substituted natural gas.

Based on statistical data,particular attention should be given to the potential for jointly implementing investment projects for biogas production in collaboration with livestock enterprises in the region and municipalities with large solid waste landfills.

Currently, the following number of livestock enterprises operate in Dnipropetrovsk region, with corresponding annual production capacities:

46 – cattle breeding, 77.4 thsd. heads;

32 – breeding of sheep and goats, 36.2 thsd. heads;

21 – poultry breeding, 20282.4 thsd. heads;

83 – breeding pigs, 289.8 thsd.

It was the livestock sector’s enterprises that implemented investment projects in the construction of biogas stations in Dnipropetrovsk region. This tendency continues to this day. In addition, there are investment projects that have been suspended because of the military aggression by the Russian Federation against Ukraine.

The potential for biogas production in Dnipropetrovsk region from livestock waste, according to the Project report “Biomethane zoning and assessment of the possibility and conditions for connecting of biomethane producers to the gas transmission and distribution systems of Ukraine” commissioned by the EBRD in 2021, is 83.44 million m³/year.

Municipal solid waste landfills are a separate area of biogas production. In particular, the city of Kryvyi Rih, Dnipropetrovsk region, proposes to implement a project on the territory of its own landfills. The project envisages the construction of an innovative horizontal biogas station that can recycle various types of biowaste, generate electricity, heat, and produce fertilisers. The estimated electricity generation capacity will be 8,695 MW/year, heat generation – 7,812 MW/year, and biogas – 1,770,687 m³/year.

Dnipropetrovsk Regional Investment Agency (DIA) will facilitate the establishment of contacts with enterprises and municipalities in the region to implement joint investment projects in biogas production.