Delorean Corporation reveals a strategic shift from EPC contractor to owner-operator of bioenergy assets, unveiling a $500 million-plus project portfolio despite a FY25 revenue dip and loss. The company is positioning itself at the forefront of Australia’s renewable gas market.
- Strategic pivot to build-own-operate (BOO) bioenergy infrastructure
- FY25 revenue down 29% to $19.8 million amid project timing and transition costs
- Over $500 million in project portfolio with five key projects underway or planned
- Secured $37 million in debt funding and $11.1 million in grants
- Strong ESG credentials and partnerships with major industry players
Delorean’s Strategic Transformation
Delorean Corporation Ltd has announced a significant strategic pivot in its business model, transitioning from a traditional engineering, procurement, and construction (EPC) contractor to a build-own-operate (BOO) developer and operator of bioenergy infrastructure. This move marks a new chapter for the company as it seeks to own and operate renewable gas assets across Australia, capitalizing on the growing demand for decarbonisation solutions in hard-to-abate sectors.
The company’s FY25 preliminary results reflect this transition, with revenue declining 29% to $19.8 million and a total comprehensive loss of $4.1 million. These financial outcomes are largely attributed to project timing delays, particularly the near-completion phase of the Yarra Valley Water project, and increased overheads associated with the shift to the BOO model. Despite these short-term impacts, Delorean is investing heavily in its future, with over $30 million invested on its balance sheet in project development.
Robust Project Pipeline and Financing
Delorean’s project portfolio now exceeds $500 million, featuring five major bioenergy projects at various stages of development, including the SA1 Salisbury bioenergy project currently under construction and the near-complete Yarra Valley Water Food Waste to Energy facility. These projects are designed to produce renewable gas, renewable electricity, and biogenic carbon dioxide from organic waste, aligning with national policies aimed at halving organic waste sent to landfill by 2030.
The company has secured $37 million in debt funding and $11.1 million in government grants, including support from ARENA and state governments, underpinning its capital-intensive infrastructure rollout. Delorean’s financing strategy involves debt-led construction funding followed by refinancing with senior debt post-commissioning, enhancing balance sheet strength and enabling capital recycling for further expansion.
Market Position and Strategic Partnerships
Delorean is positioning itself as a leader in Australia’s bioenergy sector, leveraging its vertically integrated model that generates diversified income streams from engineering contracts, renewable gas sales, carbon credits, and emerging biogenic CO₂ and biofertiliser markets. The company has forged strategic partnerships with Tier 1 entities such as Brickworks, AGIG, ATCO, and Supagas, enhancing its market reach and operational capabilities.
Its leadership team combines deep expertise in bioenergy, waste management, finance, and infrastructure delivery, supporting the company’s ambition to build the largest portfolio of commercially successful renewable energy infrastructure in Australia and New Zealand.
Sector Tailwinds and Future Outlook
Delorean’s growth trajectory is underpinned by strong sector tailwinds, including Australia’s national waste policies, rising landfill levies, and increasing demand for renewable natural gas (RNG) as a decarbonisation pathway. The company’s projects are designed to replace natural gas with biomethane, providing long-term contracted revenues from energy offtakes, environmental credits, and feedstock supply agreements.
Looking ahead, Delorean plans to complete commissioning of the SA1 BOO facility with revenue expected from late 2026, advance its VIC1 and NSW1 projects toward construction starts, and continue securing long-term offtake agreements to underpin its infrastructure portfolio. The company also intends to maintain operational excellence and risk management as it scales its asset base.
Bottom Line?
Delorean’s pivot to owning and operating bioenergy assets sets the stage for long-term growth, but execution risks and project financing will be key to watch.
Questions in the middle?
- Will Delorean secure binding long-term offtake agreements to support its BOO portfolio financing?
- How will project construction timelines and costs evolve amid the transition to asset ownership?
- What impact will evolving Australian waste and energy policies have on Delorean’s growth prospects?