DN AGRAR Group, the largest integrated livestock farm in Romania, and BSOG Energy, an energy company focused on developing biomethane plants across Romania - owned by Black Sea Oil & Gas -have signed a cooperation agreement.
The agreement will result in the largest biomethane production facility in Romania, with a total capacity of up to 15 MW.
DN AGRAR will supply the raw material for biomethane production through a long-term contract to ensure sustainability and BSOG Energy will develop the facility.
The overall investment in the facility is estimated to exceed €30 million.
Project execution is expected to take over 2 years from the signing of the final agreement. Based on a 15-year contract, the expected yearly revenues for DN AGRAR will be between €3 - 3.5 million.
Along with the composting facility that will become operational in the second half of the year, engaging in biomethane production is part of DN AGRAR's development strategy to expand and diversify its activities with a focus on sustainability.
The development strategy also includes a new farm, Straja, located near Alba Iulia, where construction has begun for a future capacity of 5,000 animals. Straja farm will become operational this year, and the livestock is being prepared at DN AGRAR Prodlact. A gradual increase in production capacity is planned, with the maximum reached by the end of 2027.
Peter de Boer, Board Member & IR Manager, DN AGRAR Group, said: "DN AGRAR initiated the project at the beginning of 2024 to achieve sustainability goals and open a new revenue stream, being the largest milk producer in Romania. This strategic partnership was signed based on Black Sea Oil & Gas' experience in executing projects in Romania.
"Our goal is to transform DN AGRAR into a leader in sustainable agriculture, significantly cutting carbon emissions from our current activities by leveraging biomethane production from manure sourced directly from our farms.
"We estimate that we can achieve a 90% reduction in carbon emissions while unlocking economic opportunities and creating new jobs. Our biomethane, compost, and solar energy projects will drive us toward nearly zero emissions and ensure our core activity development.”
Mark Beacom, Managing Director, BSOG Energy, stated: "We are delighted to partner with a company with the calibre of DN AGRAR on this exciting project. With the dual benefits of removing organic waste from the environment and simultaneously developing green gas to displace natural gas, the momentum behind biomethane development is increasing globally.
"While commercial scale production of biomethane is well established in Western Europe, this project represents the first of its kind in Romania, and we anticipate that we will soon be able to expand it from 15MW to over 20MW by sourcing additional feedstock.
"With a supportive regulatory framework in place, we believe this project can pave the way for further large-scale biomethane developments in Romania. Black Sea Oil & Gas’ shareholders The Carlyle Group and the European Bank for Reconstruction and Development are fully supportive of this new venture.”
Black Sea Oil & Gas and DN Agrar to develop Romania’s largest biomethane plant
