Delorean Advances Bioenergy Ambitions with SA1 Project FID and Strong Cash Position

Delorean's Strategic Pivot to Infrastructure Ownership

Delorean Corporation Limited (ASX: DEL) has delivered a strong second quarter in FY2025, underscored by a significant Financial Investment Decision (FID) on its fully owned SA1 Bioenergy Project. This milestone marks a critical shift as Delorean intensifies its focus on owning and operating bioenergy infrastructure, moving beyond development into active asset management.

The SA1 project, located in Edinburgh Parks, South Australia, has progressed rapidly with site mobilisation and procurement of long lead items already underway. The company aims for waste acceptance by Q2 FY2026 and first gas production by Q3 FY2026, signaling a near-term transition from construction to operational status.

Robust Progress on Yarra Valley Water Project

Meanwhile, construction continues apace on the $53 million Yarra Valley Water food waste to energy facility in Victoria. Major civil works have been completed, with tank construction and reception building development well advanced. The delivery and onsite placement of key plant and equipment further demonstrate the project’s steady march toward completion.

Delorean’s engineering division remains deeply engaged, supporting both internal projects and third-party bioenergy initiatives, reinforcing the company’s vertically integrated model that spans engineering, infrastructure, and energy retail.

Financial Health and Funding Strategy

Delorean’s financial position remains solid with a cash balance of $15.3 million at quarter-end. The company drew down $12.85 million from its $30 million Tanarra funding facility during the quarter, primarily to finance the SA1 project’s construction phase and procurement activities. This strategic funding move also enabled the settlement of a historical loan with Roadnight Capital, streamlining the company’s debt profile.

Looking ahead, Delorean is actively pursuing complementary financing partners to accelerate the VIC1 project, which is shovel ready pending funding. The company’s board is also evaluating broader portfolio funding strategies to support its expanding pipeline, including the QLD1 and NSW1 projects.

Pipeline Expansion and Market Position

Delorean’s project portfolio is growing in scale and geographic reach, with multiple projects in various stages from development to construction. The NSW1 project, developed in partnership with Brickworks Building Products, has completed its public exhibition phase and is targeting FID by late Q4 FY2025. The VIC1 and QLD1 projects are progressing through development and approval stages, positioning Delorean to capitalize on rising demand for renewable natural gas and biogenic CO2.

The company’s unique Build-Own-Operate (BOO) model, combined with long-term contracted revenue streams, offers investors exposure to a high-margin, green infrastructure sector with strong growth tailwinds. Delorean’s integrated approach, from waste processing to energy retail, further differentiates it in the Australian bioenergy landscape.

Sustainability and ESG Commitment

Delorean continues to embed sustainability into its operations, recently publishing its third annual ESG report. This underscores the company’s commitment to environmental stewardship, social responsibility, and governance excellence as it scales its bioenergy infrastructure.

With a clear roadmap for project delivery and funding, Delorean is well positioned to advance Australia’s renewable energy transition while delivering value to shareholders.