Dutch-owned dairy farm DN AGRAR invests in the largest bio-methane project in Romania
DN AGRAR Group, the largest dairy farm in Romania (Dutch investment) and BSOG Energy, an energy company specialized in the development of biomethane projects in Romania (owned by Black Sea Oil & Gas), have signed a cooperation agreement for the largest biomethane production project in Romania, with a total capacity of 15 MW.
According to Profit.ro, a Romanian business and news website, DN AGRAR will supply the raw material for biomethane production through a long-term contract to ensure the sustainability of the project, while BSOG Energy will develop the necessary infrastructure. The total investment for the realization of the project is estimated at more than 30 million euro and will take approximately 2 years to complete.
Together with the compost plant that will become operational in the 2nd part of the year, the involvement in biomethane production is part of DN AGRAR's strategy of development through diversification and expansion of the business with a focus on sustainability. The development strategy also includes a new dairy farm, Straja, located near Alba Iulia, where construction has started for a future capacity of 5,000 animals to become operational later this year.
Positive feedback from BSOG Energy
"We are delighted to partner with a company of the caliber of DN AGRAR in this exciting project. Given the dual benefit of removing organic waste from the environment and at the same time producing green gas as a substitute for natural gas, the momentum of opportunity for biomethane production has increased globally. Although commercial scale biomethane production is well developed in Western Europe, this project will be the first of its kind in Romania and we anticipate that we can increase capacity from 15 MW to over 20 MW by sourcing additional feedstock," said Mark Beacom, Managing Director, BSOG Energy.
DN AGRAR goals
Peter de Boer, Board Member & Investor Relations Director at DN AGRAR Group stated that the group "initiated the project in early 2024 to achieve its sustainability goals and to create a new source of revenue as the largest milk producer in Romania. This strategic partnership has been signed taking into consideration BSOG's experience in realizing projects in Romania. Our goal is to transform DN AGRAR into a leader in sustainable agriculture, significantly reducing carbon emissions from current activities by using manure directly from our farms to produce biomethane. We estimate we can achieve a 90% reduction in carbon emissions while opening up economic opportunities and creating new jobs. Our projects such as biomethane production, composting plant and solar energy will take us close to zero emissions and ensure the development of our core business," he added.
Business profile DN AGRAR
DN AGRAR Group is the largest producer of cow's milk in Romania and one of the most important players on the European market. The company was founded in 2008 by Jan Gijsbertus de Boer and operates in central Transylvania, in the counties of Alba, Sibiu and Hunedoara. DN AGRAR's main fields of activity are animal husbandry, crop production, agricultural services, logistics, transportation, tourism and business and management consultancy services. The DN AGRAR Group includes 11 companies, of which 4 farms whose main activity is dairy farming (Cut, Lacto Agrar, Apold and Prodlact farms). DN AGRAR Group has about 300 employees, works over 7,000 hectares of land in its own property as well as on lease, and owns over 15,000 animals, both dairy cows and young cattle. The company is listed on the Bucharest Stock Exchange.