DN AGRAR Group, one of the leading integrated agri-food companies in Romania and the largest producer of cow’s milk in Europe, together with BSOG Energy, an energy company focused on the development of biomethane production units in Romania, owned by Black Sea Oil & Gas, have signed contracts for the next stages of the development of one of the largest biomethane production units in Romania.
The signed agreement establishes the collaboration between BSOG Energy and DN AGRAR for the development of the unit and for the long-term supply of organic raw material, manure generated on DN AGRAR farms, following the initial cooperation agreement signed in October 2024. In the next eight months, it is estimated that the design of the unit and the obtaining of all necessary permits will be completed. The final investment decision is anticipated for the first half of 2026, and the start of operations is expected at the latest in the first half of 2028, subject to approvals from the authorities. The investment, estimated at 30 million euros, will be fully financed and implemented by BSOG Energy. At that time, DN AGRAR has the option to participate with an equity stake in the project.
The initial production capacity is estimated at up to 15 MW, with the possibility of exceeding 20 MW in subsequent stages. DN AGRAR will provide the feedstock for the biomethane production through a long-term contract of 15 years to ensure sustainability, with annual revenues estimated at approximately 3.5 million euros.
“Sustainability is at the heart of DN AGRAR’s operations, and our initiative to develop a biomethane production unit, now advanced through the partnership with BSOG Energy, represents an important step towards this objective. By transforming farm waste into clean energy, we aim to reduce carbon emissions by up to 90% and bring a new source of income. The project is underway, with land acquisition completed and permits in the process of being obtained through the joint efforts of the two partners. Together with our composting and solar energy initiatives, this project represents a key pillar of our strategy for the period 2025–2030, which aims to double EBITDA and consolidate DN AGRAR’s position as a leader in sustainable agriculture, directly contributing to net-zero emissions milk production,” said Peter de Boer, CEO of DN AGRAR Group.
“The signing of these definitive development and supply agreements with our partner DN AGRAR demonstrates the steady progress made in the realization of the first biomethane project in Romania. We estimate that this pioneering project with DN AGRAR will be followed by our recently announced combined biomethane/organic fertilizer project and other biomethane projects to be launched in the country. By eliminating organic waste from the environment and producing domestic gas with zero carbon emissions, we believe that BSOG Energy will significantly contribute to both Romania’s energy security and its transition to green energy. BSOG Energy’s main shareholders, The Carlyle Group and the European Bank for Reconstruction and Development, fully support this new initiative, and the final investment decision is expected in the first half of 2026,” added Mark Beacom, CEO, BSOG Energy.
DN AGRAR’s objective is to become a regional leader in dairy and premium food production, by developing industrial clusters integrating dairy farms, vegetable production, biogas and composting facilities, vertical wheatgrass farms and greenhouse horticulture. With the launch this year of the Development Strategy for 2025–2030, which outlines key strategic projects and new business lines, the company is well positioned to double its EBITDA by 2030.