Delorean Moves to Operational Phase at Yarra Valley Bioenergy Plant
Delorean Corporation has applied for Practical Completion of its Yarra Valley Water bioenergy facility, signaling readiness to transition into operations and maintenance. This milestone sets the stage for an $8 million contract phase and highlights the company’s growing footprint in renewable energy.
- Delorean requests Practical Completion for Lilydale bioenergy facility
- Facility processes 55,000 tonnes of organic waste annually
- Generates over 39,000 kWh of renewable electricity daily
- Operations & Maintenance contract valued at $8 million over 2.5 years
- Annual CO₂ emissions reduction of approximately 24,700 tonnes
Delorean Advances Bioenergy Project Milestone
Delorean Corporation Limited (ASX – DEL) has formally applied for Practical Completion of the Yarra Valley Water Lilydale bioenergy facility in Victoria, marking a significant step toward operational handover. This application indicates that Delorean believes all construction requirements have been met, enabling the facility to operate independently before its scheduled grid connection in the second half of fiscal 2026.
Facility Capabilities and Environmental Impact
The Lilydale plant is designed to process approximately 55,000 tonnes of organic waste annually through anaerobic digestion, converting it into renewable baseload electricity. This electricity primarily powers Yarra Valley Water’s adjacent sewage treatment and recycled water pump stations, with surplus energy exported to the grid. Additionally, the facility produces biofertiliser, which can be repurposed for agricultural use, contributing to circular economy principles.
Beyond energy generation, the project is expected to reduce carbon dioxide emissions by around 24,700 tonnes each year, underscoring its environmental significance. The comprehensive infrastructure includes depackaging equipment, biogas purification, and wastewater treatment systems, all built to meet stringent water utility standards.
Financial and Operational Implications
Once Practical Completion is formally confirmed by Yarra Valley Water, Delorean will transition into the Operations & Maintenance (O&M) phase of the contract. This phase is valued at approximately $8 million over an initial two and a half year term, providing a steady revenue stream and operational involvement for the company. The milestone also triggers the release of Delorean’s performance guarantees, reflecting confidence in the facility’s readiness.
Delorean’s vertically integrated business model, spanning engineering, infrastructure, and energy retail divisions, positions it well to manage the full lifecycle of bioenergy projects. This latest development at Lilydale reinforces the company’s role in Australia’s renewable energy and waste management sectors.
Looking Ahead
With grid connection planned for later in fiscal 2026, the coming months will be critical as Yarra Valley Water completes its formal acceptance process. The successful commissioning and operation of the Lilydale facility could serve as a blueprint for future bioenergy projects, potentially accelerating Delorean’s growth trajectory.
Bottom Line?
Delorean’s move toward operational status at Lilydale sets the stage for revenue generation and strengthens its position in Australia’s renewable energy landscape.
Questions in the middle?
- When will Yarra Valley Water formally confirm Practical Completion?
- How will the grid connection timing affect revenue recognition and cash flow?
- What are Delorean’s plans for scaling similar bioenergy projects nationally?
