DN AGRAR Group, one of Romania’s leading integrated agrifood companies and the largest dairy milk producer in Europe, has signed definitive development and supply contracts with BSOG Energy for the construction of a major biomethane production facility in Alba county. BSOG Energy, owned by Black Sea Oil & Gas, focuses on building biomethane plants across Romania and will fully finance the project, valued at an estimated EUR 30 million.
The new agreements follow an initial cooperation deal signed in October 2024 and mark the next stage in what is set to become one of the largest biomethane facilities in Romania.
Over the next eight months, the plant’s design and permitting process will be completed, with a final investment decision expected in the first half of 2026. Operations are planned to begin no later than early 2028, pending regulatory approvals.
Under the long-term supply agreement, DN AGRAR will provide organic raw material – primarily manure from its farms – for at least 15 years. This collaboration is expected to generate annual revenues of around EUR 3.5 million for DN AGRAR.
The facility will initially produce up to 15 MW of biomethane, with expansion potential to exceed 20 MW in later phases. DN AGRAR also retains the option to join the project as an equity partner at a later stage.
Peter de Boer, CEO of DN AGRAR Group, stated: “Sustainability is at the heart of DN AGRAR’s operations, and our initiative to develop a biomethane plant, now advanced in partnership with BSOG Energy, is a major step toward that goal. 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.”
“The signing of these definitive development and supply agreements with our partner DN AGRAR demonstrates the continuous progress being made for the realization of developing the first biomethane project in Romania. 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 at BSOG Energy.
The project is backed by BSOG Energy’s shareholders, The Carlyle Group and the European Bank for Reconstruction and Development, he stated.
DN AGRAR’s broader strategy involves the creation of industrial clusters combining dairy production with biogas, composting, vertical wheatgrass farms, and greenhouse horticulture. The company, which went public on the Bucharest Stock Exchange in 2022, aims to double its milk production from 70 million to up to 200 million liters per year by 2030, alongside tripling its organic compost output and significantly expanding its renewable energy capacity.
Founded in 2008 by Jan Gijsbertus de Boer, DN AGRAR operates in Alba, Sibiu, and Hunedoara counties, managing over 10,000 hectares of farmland and a livestock base exceeding 16,000 heads. The company is included in the BETAeRO index and the MSCI Frontier IMI and MSCI Romania IMI indices.
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, the first new offshore gas infrastructure and production project in the Romanian Black Sea in over 30 years, covering 12% of Romania’s gas needs.
irina.marica@romania-insider.com
(Photo source: Dina Gayfullina/Dreamstime.com)
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