DN Agrar Group and BSOG Energy have signed contracts to advance the development of one of Romania’s largest planned biomethane production facilities, the companies announced on July 9. The agreement formalises their partnership, first initiated in October 2024, and covers the plant’s design, permitting procedures, and long-term supply of organic raw material sourced from DN Agrar’s dairy farms.

The biomethane project is part of DN Agrar’s strategy to expand its green energy portfolio and support a circular agricultural model. The company said it aims to double its Ebitda by 2030 while pursuing its long-term ambition to produce net-zero milk.

The plant, which will be located in central Romania, is expected to have an initial production capacity of up to 15 MW, with potential to exceed 20 MW in later phases. BSOG Energy, owned by Black Sea Oil & Gas, will fully finance and implement the estimated €30mn investment. A final investment decision is expected in early 2026, with operations set to begin by the first half of 2028, pending regulatory approvals.

Under the terms of the agreement, DN Agrar will supply organic manure to the plant through a 15-year contract. This feedstock will be sourced from its network of five large-scale farms, which house more than 16,000 heads of livestock. The contract is expected to generate annual revenues of approximately €3.5mn for DN Agrar.