DN AGRAR and BSOG Energy to develop one of Romania’s largest biomethane facilities

DN AGRAR Group (BVB: DN), a Romanian integrated agri-food business and the largest dairy milk producer in Europe, has signed definitive agreements with BSOG Energy to advance the development of one of the country’s largest biomethane production plants.
BSOG Energy, owned by Black Sea Oil & Gas, is focused on expanding biomethane production across Romania.
The agreement builds on a preliminary cooperation deal signed in October 2024 and covers both the joint development of the plant and a 15-year supply contract for organic waste - primarily manure - produced by DN AGRAR’s farms.
The project, with an estimated investment of €30 million to be fully financed and executed by BSOG Energy, is expected to complete design and permitting within the next eight months.
A final investment decision is planned for early 2026, with operations targeted to begin no later than the first half of 2028, subject to regulatory approvals. DN AGRAR retains the option to participate with an equity stake at a later stage.
Initial production capacity will be up to 15 MW, with the possibility of exceeding 20 MW in future phases. DN AGRAR is expected to generate approximately €3.5 million in annual revenues through the long-term raw material supply agreement.
Peter de Boer, CEO of DN AGRAR Group, said: “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.”
Mark Beacom, Managing Director of BSOG Energy, commented: “The signing of these definitive development and supply agreements with our partner DN AGRAR demonstrates the continuous progress being made for the realisation 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/biofertiliser 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.
"SOG 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.”