Black Sea Oil & Gas SA (BSOG), alongside its shareholders, global investment firm Carlyle and the European Bank for Reconstruction and Development (EBRD), announces that it has launched BSOG Energy SRL, a new company focused on developing biogas production plants across Romania.
Headquartered in Bucharest, Romania, BSOG Energy will develop biogas plants across Romania with each site expected to have a capacity of 15MW minimum. Carlyle and EBRD have committed to support BSOG Energy’s development activities and will work closely together in scaling this new company.
Biogas is produced from agricultural and other organic waste, such as manure, straw and food wastes. The net carbon dioxide emissions generated is significantly lower, or in some cases negative, when compared to fossil methane.
For these reasons, biogas is expected to play a critical role in achieving the European Union’s climate goals. Demand for biogas is forecast to increase by 20% per year this decade, driven by supportive European Union policies and incentive structures.
Given the size of its agricultural sector, Romania has substantial feedstocks of agricultural waste that remain underutilised. By leveraging this natural endowment and promoting supportive public policies that facilitate private sector investment and subsidies from the European Union’s Modernization Fund, Romania has the potential to become a biogas leader in Europe.
Mark Beacom, BSOG CEO and Managing Director of BSOG Energy, said: “In partnership with our shareholders Carlyle and EBRD, the formation of BSOG Energy expands our platform in Romania with a new energy company focusing on green energy development. Biogas plays an important role in the energy transition, eliminating the significant pollution burden of organic waste discharge on lands and land fill sites, as well providing substantial greenhouse gas emission reductions by converting naturally occurring methane into a useable, domestically produced fuel.”
“Romania has significant Biogas potential but few developments to date. By bringing in capital, feedstock, design, offtake and green credit expertise combined with BSOG’s ability to execute in Romania, we believe that BSOG Energy is uniquely positioned to create a strong and scalable platform to deliver biogas for the region. A strong Romanian Biogas industry has the potential to increase domestic production of gas with zero carbon emissions, upgrade agricultural waste into new income streams for the agricultural sector and create new jobs in the country.”
