DN AGRAR Group (BVB: DN), the largest integrated livestock farm in Romania, and BSOG Energy, an energy company focused on developing biomethane production plants across Romania, announced a cooperation agreement for a biomethane production facility in Romania, with a total capacity of up to 15 MW.

The overall investment in the facility is estimated to exceed EUR 30 million.

DN AGRAR will supply the raw material for biomethane production, and BSOG Energy will develop the facility.

The development of the project is expected to take more than two years from the signing of the final agreement. Based on a 15-year contract, the expected yearly revenues for DN AGRAR will be between EUR 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 company said. The development strategy also includes a new farm, Straja, located near Alba Iulia, where construction has begun. Straja farm will become operational this year. 

"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," Peter de Boer, board member & IR Manager of DN AGRAR Group, said.

"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," Mark Beacom, managing director, BSOG Energy, said. "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."

DN AGRAR Group is the largest cow milk producer in Romania and one of the major players in the European market. The company was founded in 2008 by Jan Gijsbertus de Boer and operates in the center of Transylvania, in Alba, Sibiu, and Hunedoara counties.  DN AGRAR's main areas of activity are animal husbandry, agricultural crop production, agricultural services, logistics, transportation, tourism, and business and management consultancy services. The DN AGRAR Group includes 11 companies, out of which four farms whose main activity is dairy cattle breeding (Prodlact farm) and cow's milk production (Cut, Lacto Agrar, and Apold farms). 

BSOG Energy is a Romanian energy company targeting the development of green energy projects, with an initial focus on developing biomethane production sites across the country. It is 100% owned by Black Sea Oil & Gas SA, the developer and majority owner of the Midia Gas Development (MGD) project.

(Photo: Ralf Geithe | Dreamstime.com)

simona@romania-insider.com