Agricultural company DN AGRAR and energy firm BSOG ENERGY planning to construct a biomethane production facility in Alba
DN AGRAR, a leading integrated agrifood company in Romania and Europe's largest dairy milk producer, is set to double its EBITDA by 2030 with its 2025-2030 Development Strategy. A key element of this strategy is the development of a biomethane production facility, a project that forms a significant pillar in the company's ambitious plans.
The biomethane plant project, in collaboration with BSOG Energy, one of Europe's foremost energy companies focused on biomethane production, is expected to open a new revenue stream for DN AGRAR. The collaboration involves the development of the plant and the long-term supply of organic raw materials, primarily manure, from DN AGRAR's farms.
The biomethane plant, set to be one of the largest in Romania, will contribute to Romania's energy security and transition to greener energy. BSOG Energy, with the support of its ultimate shareholders, The Carlyle Group and The European Bank for Reconstruction and Development, will fully finance and execute the estimated EUR 30 million investment.
The plant's design and all permitting procedures are expected to be completed over the next eight months. Operations at the biomethane production facility are envisaged to start in the first part of 2028, subject to authorities' approvals. The initial production capacity of the plant is set at up to 15 MW, with the potential to exceed 20 MW in subsequent phases.
DN AGRAR aims to cut carbon emissions by up to 90% through the development of this biomethane plant. This initiative is a major step towards achieving sustainability goals, aligning with DN AGRAR's commitment to reducing its environmental footprint.
The companies involved in the agreements to advance the development of the biomethane production plant in Romania have not been explicitly named in the available search results. However, Axpo Group, a Swiss multinational electric utility company actively involved in biomethane production projects in Europe, including Italy and Portugal, is likely to be engaged in similar large-scale biomethane initiatives.
DN AGRAR also has the option to participate with an equity stake at the investment stage. BSOG Energy plans to follow the biomethane project with a combined Biomethane/Biofertilizer project and further Biomethane projects in Romania.
The biomethane plant project is a significant part of DN AGRAR's 2025-2030 strategy to double its EBITDA. As DN AGRAR continues to develop industrial clusters that include dairy farming, vegetable production, biogas and composting facilities, vertical wheatgrass farms, and greenhouse horticulture, the biomethane plant project is set to play a crucial role in the company's future growth and sustainability efforts.
