DN AGRAR Group (BVB: DN), one of the leading integrated agri-food companies in Romania and the largest producer of cow’s milk in Europe, together with BSOG Energy, an energy company focused on the development of biomethane production units in Romania, owned by Black Sea Oil & Gas, have signed the contracts for the next stages of the development of one of the largest biomethane production units in Romania.
The signed agreement establishes the collaboration between BSOG Energy and DN AGRAR for the development of the unit and for the long-term supply of organic raw material, manure generated on DN AGRAR farms, following the initial cooperation agreement signed in October 2024. In the next eight months, it is estimated that the design of the unit and the obtaining of all necessary permits will be finalized. The final investment decision is anticipated for the first half of 2026, and the start of operations is expected in the first half of 2028 at the latest, subject to approvals from the authorities. The investment, estimated at 30 million euros, will be fully financed and implemented by BSOG Energy. At that time, DN AGRAR has the option to participate with an equity stake in the project.
The initial production capacity is estimated at up to 15 MW, with the possibility of exceeding 20 MW in subsequent stages. DN AGRAR will provide the raw material for biomethane production through a long-term contract of 15 years to ensure sustainability, with annual revenues estimated at approximately 3.5 million euros.
Peter de Boer, CEO of DN AGRAR Group: “Sustainability is at the heart of DN AGRAR’s operations, and our initiative to develop a biomethane production unit, now advanced through the partnership with BSOG Energy, represents an important step towards this goal. By transforming farm waste into clean energy, we aim to reduce carbon emissions by up to 90% and bring a new source of income. The project is underway, with land acquisition completed and permits in the process of being obtained through the joint efforts of the two partners. Together with our composting and solar energy initiatives, this project represents a key pillar of our strategy for the period 2025–2030, which aims to double EBITDA and consolidates DN AGRAR’s position as a leader in sustainable agriculture, directly contributing to net-zero emissions milk production.”
Mark Beacom, CEO, BSOG Energy: “The signing of these definitive development and supply agreements with our partner DN AGRAR demonstrates the steady progress made in delivering the first biomethane project in Romania. We anticipate that this pioneering project with DN AGRAR will be followed by our recently announced combined biomethane/organic fertilizer project and other biomethane projects to be launched in the country. By removing organic waste from the environment and producing zero-carbon domestic gas, we believe that BSOG Energy will make a significant contribution to both Romania’s energy security and its transition to green energy. BSOG Energy’s major shareholders, The Carlyle Group and the European Bank for Reconstruction and Development, fully support this new initiative, and the final investment decision is expected in the first half of 2026.”
DN AGRAR’s objective is to become a regional leader in dairy and premium food production, by developing industrial clusters integrating dairy farms, vegetable production, biogas and composting facilities, vertical wheatgrass farms and greenhouse horticulture. With the launch of the Development Strategy for 2025–2030 this year, which outlines key strategic projects and new business lines, the company is well positioned to double its EBITDA by 2030.
About DN AGRAR Group
DN AGRAR Group is the largest producer of cow’s milk in Europe and one of the leading integrated agri-food companies in Romania, listed on the Bucharest Stock Exchange since 2022.
The Group operates an integrated business model, based on milk production, crop production, organic composting and green energy, supporting sustainable and circular agriculture. With five large farms and a livestock of over 16,000 heads, the company delivers approximately 70 million liters of milk annually, with the objective of doubling production to 150-200 million liters per year by 2030. DN AGRAR manages over 10,000 hectares of agricultural land and two compost units with a capacity of 14,000 tons of organic fertilizer per year, aiming to expand this to 40,000 tons by 2030. The group has tripled its business in just three years since listing and aims to double EBITDA by 2030, while aiming to produce milk with net zero emissions. To support its development as a regional leader in dairy and premium food production, DN AGRAR’s 2030 strategy integrates doubling milk production capacity with expansion into complementary business segments. These include vertical wheatgrass farms, designed to provide 25% of the current feed needs, biomethane production in partnership, industrial greenhouses and the expansion of composting infrastructure. Together, these initiatives are designed to increase operational performance and efficiency, while also providing the premises for the development of agro-industrial clusters and projects that increase the added value of milk.
Founded in 2008 as a family business by Jan Gijsbertus de Boer, the DN AGRAR Group operates in the heart of Transylvania, in the counties of Alba, Sibiu and Hunedoara. Listed on the AeRO market of the Bucharest Stock Exchange since February 2022, the company is included in the local BETAeRO index, as well as in the international indices MSCI Frontier IMI and MSCI Romania IMI (Small Cap category).