DN AGRAR, the largest integrated livestock farm in Romania, leader in cow milk production, and BSOG Energy, an energy company focused on developing biomethane production plants across Romania owned by Black Sea Oil & Gas, announced the signing of a cooperation agreement for a biomethane production facility in Romania, with a total capacity between 15 to 20 MW.

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.

Peter de Boer, Board Member & IR Manager, DN AGRAR Group:
”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.”

Mark Beacom, Managing Director, BSOG Energy:
”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.”

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

Project execution is expected to take over 2 years from the signing of the final agreement and the expected yearly revenues for DN AGRAR will be between EUR 3 – 3.5 million, based on a 15-year contract.

With extensive experience in the agricultural sector, DN AGRAR is strategically positioned to contribute to the development of a circular economy.

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.

Manure represents a valuable resource that DN AGRAR, as a leader, can capitalize on. Through the partnership with BSOG Energy and biomethane production, we will significantly reduce environmental impact and generate new business opportunities.

The implementation of sustainability projects focused on biomethane, composting, and solar panels are part of DN AGRAR’s development strategy through the diversification and expansion of its activity with an emphasis on sustainability.

Through these strategic initiatives, DN AGRAR aims to significantly reduce its carbon footprint and approach the net-zero emissions target in 2030.