Delorean Advances SA1 Salisbury with $2.7M ARENA Grant Milestone

Grant Milestone Boosts Bioenergy Project

Delorean Corporation Ltd has announced the receipt of a $2.7 million milestone payment from the Australian Renewable Energy Agency (ARENA), marking a significant step forward in the development of its SA1 Salisbury bioenergy facility. This payment is part of a larger $6.08 million grant aimed at accelerating the construction and commissioning of infrastructure critical to producing mains-grade biomethane.

Construction Progress and Infrastructure Upgrades

The funding retroactively covers costs associated with procurement, installation, and commissioning of upgrades that enhance the facility’s ability to convert biogas into renewable natural gas. Key construction milestones have been achieved, including the completion of tank farm slabs and earthing, ongoing bund wall construction, delivery of digester tank materials, and near completion of stormwater management works. These developments indicate the project is advancing in line with its planned schedule.

Secured Offtake Agreements and Revenue Streams

Delorean has locked in a long-term offtake agreement with Origin Energy for the supply of biomethane, ensuring a stable revenue stream once production commences. Additionally, the project will generate renewable liquid CO₂ sold to Supagas, alongside other income from gate fees, carbon credits, and biofertilizer sales. These diversified revenue streams underpin the financial viability of the SA1 Salisbury plant.

Strategic Importance and Future Outlook

Located in the Northern Adelaide Food Park, the SA1 Salisbury facility is positioned to process 70,000 tonnes of organic waste annually in its first stage, producing up to 210 terajoules of renewable gas. Future expansion plans could increase processing capacity to 125,000 tonnes per year. The project aligns with broader national goals to reduce landfill waste and increase renewable energy supply, contributing to South Australia’s environmental and economic objectives.

Delorean’s integrated approach; from waste processing to energy retail; positions it well to capitalize on the growing demand for sustainable energy solutions. The recent milestone payment and construction progress provide tangible evidence of the company’s momentum in this competitive sector.