The planned investments include a new composting factory at the Lacto Agrar farm, the second within the Group, and the installation of solar panels on the rooftops of buildings at Apold, Lacto Agrar, and Cut (DN AGRAR Service) farms. The project financing is subject to the shareholders' approval at the Extraordinary General Meeting of Shareholders scheduled for March, 25th of 2025.
Peter de Boer, Board Member & Strategy and IR Director, DN Agrar Group: "We are committed to further strengthening our sustainability strategy by investing in renewable energy and circular farming solutions. These projects will be financed through a combination of European funds and bank loans, reinforcing our position as an industry leader. Following the operations started at our first composting unit at Apold farm, which has generated significant market interest, we are now pleased to announce plans to expand our operations by installing a second composting unit at Lacto Agrar farm. This new facility is expected to become fully operational in Q4 2025. In line with our commitment to sustainability, we have also initiated the process of obtaining voluntary carbon certification for the compost produced.
For the installation of solar panels, the total investment is approximately €1.7 million and 60% of the total value will be reimbursed after installation through non-refundable funds from PNRR (Romania's National Recovery and Resilience Plan). The Installation of the panels will start in the 2nd quarter of 2025. We estimate that through this project we will become completely energy independent for our Lacto Agrar, Cut and Apold farms."
Projects subject to approval at the EGMS on March 25th:
Compost factory at Lacto Agrar farm with a capacity of 7,000 tons of organic fertilizer annually
The investment is to start in 2025 with the aim of becoming fully operational in Q4 2025. The total investment amounts to €1.7 million and will be financed through bank financing. With the inauguration of the second compost factory, DN Agrar will expand its organic fertilizer production capacity by an additional 7,000 tons annually, bringing the total annual production up to 14,000 tons, starting in 2026. The organic fertilizer produced will be used both internally and sold to third parties, generating additional revenue streams.
The plans include organic certification of the products and expansion into specialized markets. It is estimated that approximately 32,000 voluntary carbon certificates will be generated annually, supporting carbon emission reduction targets.
Solar panels with an installed capacity of 2,218 kW
The investment is planned to be made in 2025 with the objective of installing solar panels on the rooftops of buildings at Apold, Lacto Agrar, and Cut (DN Agrar Service) farms. The total investment amounts to approximately €1.7 million and will be financed through non-refundable PNRR funds (60% of the total value, the project receiving already all the approvals), with the difference of 40% financed via bank loan. The installation is scheduled for Q2 2025.
In the second phase, the farms will also be equipped with storage batteries to enhance further the efficiency brought.
