The Romanian Commercial Bank (BCR) announced on Tuesday it had struck a financing deal with First Biogaz, a member of Austria’s Biogest for the construction of a 1.5MW biogas plant in northern Romania.
According to Marin Schlerka, Biogest CEO, the plant requires an investment of around EUR 6 million and its output can cover the consumption of around 4,500 households. He said the heat will be used an operational cereal drying plant and a fish farm.
Biogest has worked on over 90 biogas projects across Europe, including Britain, Italy and the Czech Republic.
Tobias Waldemar Seiferth, head of international desk at BCR, commented the lender is interested in financing the local economy, including the renewable energy sector.
Until recently, investors have held back from investing in biomass projects due to the difficulties in obtaining the raw materials and finding viable customers to sell the output. Little over 50MW of biomass capacities was operational locally by September, according to grid operator Transelectrica.
Most of the foreign investments made strategic investments in wind and lately solar capacities.