Delorean Secures Full Funding and Gas Grid Link for SA1 Bioenergy Milestone
Delorean Corporation has achieved a landmark in Australian bioenergy by fully funding its SA1 Salisbury project and securing a renewable gas grid connection, advancing its transition to sustainable energy infrastructure.
- SA1 Salisbury Bioenergy project fully funded with $6.1m grant and $7m debt secured
- Historic agreement to connect SA1 plant to AGIG gas grid for renewable biomethane export
- Ongoing construction progress at Yarra Valley Water and SA1 sites targeting FY2026 gas production
- Strategic partnership with Brickworks advancing NSW1 project towards Final Investment Decision
- Delorean maintains $15 million cash balance and expands project pipeline including VIC1 and QLD1
A Watershed Moment for Australian Bioenergy
Delorean Corporation Limited (ASX: DEL) has marked Q3 FY2025 as a pivotal quarter in its evolution as a leader in Australia’s bioenergy sector. The company announced the full funding of its SA1 Salisbury Bioenergy project in South Australia, complemented by a historic first-of-its-kind agreement with the Australian Gas Infrastructure Group (AGIG) to connect the plant to the national gas grid. This connection enables the export and distribution of mains-grade renewable gas (biomethane), positioning Delorean at the forefront of renewable gas commercialization in Australia.
Alongside this, Delorean secured a sale agreement with Supagas for biogenic food-grade liquid carbon dioxide (LCO2) produced at the SA1 facility, diversifying its revenue streams and underscoring the commercial viability of bioenergy by-products.
Robust Construction and Project Pipeline Momentum
Construction activities are advancing steadily across Delorean’s portfolio. At the Yarra Valley Water food waste to energy project in Victoria, valued at $59.5 million, major civil works are complete with key infrastructure such as digester tanks and reception buildings installed. Mechanical and electrical connections are underway, with commissioning anticipated soon.
Meanwhile, the SA1 project has mobilized additional site teams and commenced major earthworks, with all long lead procurement items ordered. The company targets waste acceptance and first gas production in FY2026, signaling a critical operational milestone.
Delorean’s collaboration with Brickworks Building Products on the NSW1 project continues to progress through development approvals and planning, with the Final Investment Decision (FID) expected to crystallize in the near term. Preliminary construction has also begun on the VIC1 Stanhope project, with funding efforts ongoing to bring it fully online alongside SA1.
Financial Strength and Strategic Growth
Delorean’s financial position remains solid with a cash balance of $15 million as of 31 March 2025. The company drew down $6 million from its Tanarra debt facility during the quarter, bringing total borrowings to $23.85 million to support SA1 construction. Additionally, $6.1 million in grant funding from ARENA further underpins project financing.
The company’s vertically integrated model spans infrastructure development, engineering services, and energy retailing, enabling it to capture multiple revenue streams from organic waste processing, renewable electricity and gas generation, and biogenic by-products. This diversified approach, combined with long-term contracts and attractive project economics, positions Delorean for sustainable growth amid strong industry tailwinds.
ESG Commitment and Future Outlook
Delorean continues to emphasize its Environmental, Social, and Governance (ESG) credentials, having published its third annual ESG report in late 2024. The report highlights key sustainability milestones and outlines ongoing commitments to responsible bioenergy development.
Looking ahead to Q4 FY2025, Delorean plans to focus on completing SA1 construction, advancing NSW1 through planning approvals and commercial negotiations, commissioning the Yarra Valley Water project, and securing funding for VIC1. The company also aims to progress its QLD1 and WA2 projects, further expanding its national bioenergy footprint.
Bottom Line?
Delorean’s full funding and gas grid connection for SA1 set the stage for Australia’s renewable gas future, with operational milestones and project expansions on the horizon.
Questions in the middle?
- When will SA1 Salisbury Bioenergy achieve first gas production and commercial operation?
- What are the detailed terms and expected volumes under the AGIG gas grid connection and Supagas LCO2 sale agreements?
- How will Delorean finance and time the construction of VIC1 alongside ongoing SA1 and NSW1 developments?
