Romanian Commercial Bank to finance 1.5MW biogas plant construction

The Romanian Commercial Bank (BCR) has announced a financing deal with First Biogaz, a member of Austria's Biogest, for the construction of a 1.5MW biogas plant in northern Romania.

According to Marin Schlerka, Biogest CEO, the plant requires an investment of around €6 million ($8 million) and its output can cover the energy consumption of around 4,500 households.

Tobias Waldemar Seiferth, head of international desk at BCR, says the bank is interested in financing the local economy, including the renewable energy sector.

Until recently, investors have held back from investing in biomass projects due to the difficulties in obtaining the raw materials and finding viable customers to sell the output. Little over 50MW of biomass capacities was operational locally by September, according to grid operator Transelectrica.

Biogest has worked on over 90 biogas projects across Europe, including Britain, Italy and the Czech Republic.