The overall investment in the facility is estimated to exceed EUR30 million. Project execution is expected to take over 2 years from the signing of the final agreement.
DN AGRAR will supply the raw material for biomethane production through a long-term contract to ensure sustainability and BSOG Energy will develop the facility.
”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 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,” stated Peter de Boer, Board Member & IR Manager, DN AGRAR Group.
Based on a 15-year contract, the expected yearly revenues for DN AGRAR will be between EUR3 – 3.5 million.
”We are delighted to partner with a company with the caliber of DN AGRAR on this exciting project. 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. 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,” stated Mark Beacom, Managing Director, BSOG Energy.
The development strategy also includes a new farm, Straja, located near Alba Iulia, where construction has begun for a future capacity of 5,000 animals. Straja farm will become operational this year, and the livestock is being prepared at DN AGRAR Prodlact. A gradual increase in production capacity is planned, with the maximum reached by the end of 2027.
DN AGRAR Group, consisting of 13 companies, including four farms specialized in dairy cattle breeding and cow milk production, has integrated activities, including logistics and transportation services for cow milk, nationally and in Europe. In the field of cereals, the group cultivates over 7,000 hectares of cereals and fodder, primarily to provide food for more than 15,000 animals within DN AGRAR Group’s farms.
(English version by Catalina Apostoiu)