Black Sea Oil & Gas, alongside its shareholders Carlyle and EBRD, launches a new Biogas business in Romania

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Black Sea Oil & Gas, alongside its shareholders Carlyle and EBRD, launches a new Biogas business in Romania

Bucharest, Romania, 29 May 2024

Bucharest, Romania, 29 May 2024 – Black Sea Oil & Gas SA (“BSOG”), alongside its shareholders, global investment firm Carlyle (NASDAQ: CG) 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.

BSOG’s original mission was to enhance Romania’s energy security and affordability by bringing domestically produced gas to Romanian consumers. In launching BSOG Energy, BSOG intends to play a significant role in the European energy transition as well as accelerate the development of the Romanian renewable energy sector.

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 annum 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.”

He added: “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.”

About Black Sea Oil & Gas SA

BSOG, owned by Carlyle and the EBRD, is a Romanian based independent energy company that, as a 70% owner and the operator, developed the Midia Gas Development (MGD) project, the first offshore gas development in the Romanian Black Sea in over 30 years. BSOG continues to target offshore development of gas resources and, using its vital MGD infrastructure, is pursing the development of green energy projects such as onshore solar on its existing lands, offshore wind by utilizing its offshore energy corridor and lands and also green hydrogen and/or CCS through the use of its existing onshore and offshore infrastructure.

About BSOG Energy SRL

BSOG Energy is a new standalone energy company targeting the development of green energy projects outside of MGD with an initial focus of developing Biogas sites across Romania. BSOG Energy is currently 100% owned and managed by BSOG with the view that once it reaches the requirements for investment funding it will be supported directly by Carlyle and EBRD as shareholders.

About Carlyle

Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $425 billion of assets under management as of March 31, 2024, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,200 people in 28 offices across four continents. Further information is available at www.carlyle.com. Follow Carlyle on X @OneCarlyle and LinkedIn at The Carlyle Group.

About EBRD

The EBRD is a multilateral development bank that promotes sustainable and private sector-led economies in central and eastern Europe, Central Asia, and the southern and eastern Mediterranean. The Bank is owned by 73 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated.

For further information:

visit: https://www.blackseaog.com/bsog-energy/

or contact:

ana-maria.pericleanu@blackseaog.com

Tel: +40 21 231 32 56

Ana-Maria Pericleanu