Romanian BSOG, DN Agrar plan 15 MW biomethane production site
16/10/2024 12:29
BUCHAREST, Oct 16 (Reuters) - Romanian offshore gas
producer Black Sea Oil & Gas (BSOG), controlled by private
equity firm Carlyle Group LP CG.O , and leading livestock farm
DN Agrar RODN.BX , said on Wednesday they will develop a 15 MW
biomethane production plant, the first in the EU state.
Romania uses a mix of gas, coal, hydro, nuclear and
renewables for electricity generation and has committed to
phasing out lignite, or brown coal.
Biomethane is chemically identical to natural gas and can be
injected into existing pipeline grids, but is produced by
bacteria feeding on crops and manure in a process called
anaerobic digestion.
EU rules label biomethane "renewable", meaning countries and
companies can count it as green energy alongside wind and solar.
The site BSOG and DN Agrar plan to build will cost an
estimated 30 million euros ($32.68 million), with construction
taking two years from when a final agreement is signed.
"While commercial scale production of biomethane is well
established in Western Europe, this project represents the first
of its kind in Romania, and we anticipate that we will soon be
able to expand it from 15 MW to over 20 MW," BSOG Chief
Executive Mark Beacom said in a statement.
"With a supportive regulatory framework in place, we believe
this project can pave the way for further large-scale biomethane
developments in Romania."
DN Agrar, the country's largest producer of cow milk, said
it estimated the project could lead to a 90% reduction in its
carbon emissions.
BSOG launched Romania's first offshore Black Sea development
in three decades two years ago, extracting roughly 10% of
Romania's consumption.
($1 = 0.9179 euros)
(Reporting by Luiza Ilie;
Editing by Alison Williams)
((luiza.ilie@thomsonreuters.com; +4021 527 0312; https://www.reuters.com/journalists/luiza-ilie;))