DN AGRAR and BSOG ENERGY to Develop Biomethane Production Facility in Alba
DN AGRAR Group, one of the leading integrated agrifood company in Romania and largest dairy milk producer from Europe, and BSOG Energy, an energy company focused on developing biomethane production plants across Romania owned by Black Sea Oil & Gas, have signed the contracts for the next steps in the development of what will become one of the largest biomethane production facility in Romania.
The agreement signed outlines the BSOG Energy – DN AGRAR collaboration in developing the plant and the long-term supply of organic raw material, manure, generated by DN AGRAR’s farms, following the initial cooperation agreement signed in October 2024. Over the next eight months, the plant’s design is expected to be finalized, along with the completion of all permitting procedures. The final investment decision is anticipated in the first part of 2026, with operations envisaged to start in the first part of 2028, subject to authorities’ approvals.
BSOG Energy will fully finance and execute the estimated EUR 30 million investment. At that stage, DN AGRAR also holds the option to participate with an equity stake.
Initial production capacity is set at up to 15 MW, with the potential to exceed 20 MW in subsequent phases. DN AGRAR will supply the raw material for biomethane production through a long-term contract of 15 years to ensure sustainability, with expected yearly revenues of an approximative EUR 3.5 million.
“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. With land acquisition completed and building permits progressing through joint efforts, the project is well underway. Together with our composting and solar energy initiatives, the project forms a key pillar of our 2025–2030 strategy to double EBITDA and strengthens DN AGRAR’s position as a leader in sustainable agriculture, contributing directly to the production of net-zero milk,” Peter de Boer, CEO DN AGRAR Group, stated.
“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. By eliminating organic waste from the environment and producing domestic gas with zero carbon emissions we believe that BSOG Energy will be making a significant contribution to both Romania’s energy security and its transition to greener energy. BSOG Energy’s ultimate shareholders, The Carlyle Group and The European Bank for Reconstruction and Development, are fully supportive of this new venture, and we expect the final investment decision in the first part of 2026,” Mark Beacom, Managing Director of BSOG Energy, noted.
DN AGRAR’s goal is to become a regional leader in premium dairy and food production by developing industrial clusters that combine dairy farming, vegetable production, biogas and composting facilities, vertical wheatgrass farms, and greenhouse horticulture. With the launch of the 2025–2030 Development Strategy this year, which outlines key strategic projects and new business lines, the company is well-positioned to double its EBITDA by 2030.
