DN Agrar, BSOG Energy to develop biomethane production facility in Alba

Business Forum
Agrifood company DN Agrar Group has officially signed development and supply contracts with BSOG Energy, owned by Black Sea Oil & Gas, for a significant biomethane production facility in Alba.

This initiative marks a crucial step towards establishing one of Romania's largest biomethane plants, building on an initial cooperation agreement from October 2024. 

The project anticipates finalizing the plant's design and completing all permitting procedures within the next eight months. The final investment decision is expected in H1 2026, with operations projected to start by H1 2028, pending regulatory approvals.

BSOG Energy will fully finance and execute the estimated €30 million investment. DN Agrar retains the option to participate with an equity stake at a later stage. The facility's initial production capacity is set at up to 15 MW, with potential for expansion beyond 20 MW in subsequent phases.

DN Agrar will supply the raw material through a 15-year contract, anticipating approximate annual revenues of €3.5 million.

Peter de Boer (in photo), CEO of DN Agrar Group, said: “By turning farm waste into clean energy, we aim to cut carbon emissions by up to 90% and we are opening a new revenue stream.” 

“We are anticipating that this pioneering project with DN Agrar will then be followed by our recently announced combined Biomethane/Biofertilizer project and further Biomethane projects to be announced for the country,” added Mark Beacom, Managing Director of BSOG Energy.

He added that this project, alongside composting and solar energy initiatives, forms a key pillar of their 2025-2030 strategy to double Ebitda and strengthen DN Agrar's position as a leader in sustainable agriculture, contributing directly to the production of net-zero milk. 

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