DN AGRAR Group, the largest integrated farm in Romania, a leader in the production of cow’s milk, and BSOG Energy, an energy company specialized in the development of biomethane production projects in Romania, owned by Black Sea Oil & Gas, announce the signing of an cooperation agreement for the largest biomethane production project 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 the sustainability of the project, and BSOG Energy will develop the necessary infrastructure. The total investment for the realization of the project is estimated at over 30 million euros. The execution of the project is estimated to last over 2 years after the signing of the final agreement. The estimated annual revenues for DN AGRAR will be between 3 and 3.5 million euros, based on a contract for a period of 15 years.
“DN AGRAR initiated the project at the beginning of 2024 to achieve the sustainability objectives and to create a new source of income, being the largest milk producer in Romania. This strategic partnership was signed in consideration of BSOG’s experience in carrying out projects in Romania. Our goal is to transform DN AGRAR into a leader in sustainable agriculture, significantly reducing carbon emissions from current activities by utilizing manure directly from our farms for biomethane production. We estimate that we can achieve a 90% reduction in carbon emissions, while opening up economic opportunities and creating new jobs. Our projects such as biomethane production, compost plant and solar energy will lead us to near-zero emissions and ensure the development of our core business,” said Peter de Boer, CA Member & Investor Relations Director DN AGRAR Group.
“We are pleased to be partners with a company of the caliber of DN AGRAR in this exciting project. Given the dual benefit of removing organic waste from the environment and at the same time producing green gas as a substitute for natural gas, the time of opportunity for biomethane production has increased globally. Although commercial-scale biomethane production is well established in Western Europe, this project will be the first of its kind in Romania, and we anticipate that we can increase the capacity from 15 MW to over 20 MW by obtaining additional feedstock. Provided a favorable regulatory framework is ensured, we believe this project can pave the way for other large-scale biomethane developments in Romania. Black Sea Oil & Gas’s shareholders, The Carlyle Group and the European Bank for Reconstruction and Development, fully support this new initiative,” added Mark Beacom, Managing Director, BSOG Energy.
Together with the compost factory that will become operational from the second part of the year, the involvement in biomethane production is part of DN AGRAR’s development strategy by diversifying and expanding the activity with an emphasis on sustainability.
The development strategy also includes a new farm, Straja, located near the town of Alba Iulia, where construction has begun for a future capacity of 5,000 animals. The Straja farm, for which the livestock is being prepared at DN AGRAR Prodlact, will become operational this year. The increase in production capacity is planned gradually, with maximum capacity being reached by the end of 2027.