Black Sea Oil & Gas (BSOG), together with its shareholders, the global investment firm Carlyle and the European Bank for Reconstruction and Development (EBRD), announces the launch of BSOG Energy, a new company focused on the development of biogas units throughout Romania.
BSOG Energy will develop biogas plants throughout Romania, each site being estimated to have a minimum capacity of 15 MW. Carlyle and EBRD have committed to support BSOG Energy’s development activities and work together to expand the new company.
BSOG’s initial mission was to contribute to Romania’s energy security and accessibility by delivering domestically produced gas to Romanian consumers. By launching BSOG Energy, BSOG intends to play a significant role in the European energy transition, as well as to accelerate the development of the Romanian renewable energy sector.
Biogas results from the industrial processing through anaerobic digestion of agricultural residues and other organic waste such as manure, straw and food waste. The net carbon dioxide emissions generated are significantly lower, or in some cases negative, compared to fossil methane.
For these reasons, it is expected that biogas will play a critical role in achieving the climate objectives of the European Union. The demand for biogas is expected to increase by 20% per year this decade, driven by support policies and incentive structures of the European Union.
Considering the size of its agricultural sector, Romania has substantial amounts of agricultural waste that remain unused. By capitalizing on this natural resource and promoting public support policies that facilitate investments in the private sector and subsidies from the European Union’s Modernization Fund, Romania has the potential to become a leader in biogas in Europe.
“In partnership with our shareholders, Carlyle and EBRD, by establishing BSOG Energy we are expanding our business portfolio in Romania with a new company active in the development of renewable energy projects. Biogas plays an important role in the energy transition, eliminating the significant impact of pollution represented by the discharge of organic waste on land and landfills, and at the same time offers substantial reductions in greenhouse gas emissions by transforming naturally produced methane into a usable, domestically produced fuel,” said Mark Beacom, CEO of BSOG and General Manager of BSOG Energy.
“Romania has a significant potential in the biogas industry, but few developments in the field so far. By bringing raw materials, design, procurement and green credit expertise and combining with BSOG’s expertise in implementing projects in Romania, we believe that BSOG Energy is well positioned to create a platform that can be successfully replicated with the aim of to deliver biogas to the region. A strong Romanian biogas sector has the potential to increase local gas production with zero CO2 emissions, turning agricultural waste into new income for the agricultural sector as well as contributing to the creation of new jobs,” he added.