On 9 September 2021, the Parliament adopted in the first reading the draft Law on Amendments to the Law of Ukraine "On Alternative Fuels" on the development of biomethane production (the "Draft Law").

The Draft Law defines "biomethane" as biogas, which, in terms of its physical and technical characteristics, meets the requirements of regulatory legal acts for natural gas to be supplied to gas transportation and gas distribution systems, or to be used as a motor fuel.

The Draft Law proposes to create a register of biomethane, which will be maintained by the Ukrainian State Agency on Energy Efficiency and Energy Saving. According to the Draft Law, a biomethane producer who intends to sell biomethane through a gas transportation or gas distribution system must receive an account in this register. The procedure on functioning of the register must be approved by the Government.

According to the Draft Law, the biomethane register among other forms a biomethane guarantee of the origin; confirms that biomethane was produced from biomass; and contains information on the amount of biomethane that was supplied to the gas transmission or gas distribution system, as well as other necessary information.

Biogas production has a huge potential for Ukraine. Sources for the production of biomethane can be waste or by-products from the agro-industrial complex, landfills with solid household waste etc.