DN Agrar and BSOG Romania plan to build a 15 MW Biomethane Production Site

The first biomethane plant in the EU will be built by Black Sea Oil & Gas, a Romanian offshore gas company controlled by Carlyle Group LP and DN Agrar.

Romania has committed to phase out brown coal and uses a mixture of coal, gas, hydroelectric, nuclear, and renewables.

Anaerobic digestion is a process that produces biomethane, which is a gas identical to natural. It can be injected in existing pipelines.

Biomethane is considered renewable energy by EU regulations, so countries and companies can use it alongside wind and solar.

Construction of the site BSOG & DN Agrar intend to build is expected to cost 30 million euros (32.68 millions). The construction will take two years after signing the final agreement.

This project is the first of its type in Romania. We anticipate being able to expand this from 15 MW up to 20 MW in the near future," BSOG CEO Mark Beacom stated in a press release.

We believe that this project, with a regulatory framework supportive of its development, can pave way for future large-scale biomethane projects in Romania.

DN Agrar is the largest producer of milk in the country. It estimated that the project would lead to a reduction of 90% in carbon emissions.

BSOG began Romania's first offshore Black Sea project in 30 years two years ago. It extracted roughly 10% of Romanian consumption. ($1 = 0.9179 euros) (Reporting and editing by Alison Williams; Luiza Ilie)

(source: Reuters)