Delorean’s Financing Shift: What Risks Lurk Behind the New NAB Loan?

• Secured $14.5 million project finance facility from NAB
• Refinances part of $37 million Tanarra corporate debt at lower cost
• Funds allocated for capital plant and equipment at SA1 project
• SA1 project on track for renewable biomethane export in April 2026
• First major bank project-level financing, paving way for broader NAB partnership

Delorean’s Strategic Financing Milestone

Delorean Corporation Limited (ASX – DEL) has taken a significant step forward in its clean energy ambitions by securing a $14.5 million bank loan facility from National Australia Bank (NAB). This funding is earmarked for the SA1 Salisbury Bioenergy Project, located in Edinburgh Parks, South Australia, and represents Delorean’s first project-level financing arrangement with one of Australia’s big four banks.

The loan package, structured in two tranches, will finance the acquisition of capital plant and equipment critical to the construction and commissioning of the SA1 facility. The project is on schedule to begin exporting renewable biomethane into the gas network by April 2026, marking a key milestone in Australia’s renewable gas sector.

Refinancing and Cost Efficiency

This NAB facility replaces $14.5 million of Delorean’s existing $37 million corporate finance package with Tanarra Restructuring Partners, offering a lower cost of debt. By refinancing this portion of its debt, Delorean frees up Tanarra funds to accelerate development and construction of its broader portfolio of shovel-ready bioenergy projects nationwide.

Facility 1, valued at $12.12 million, carries an interest rate of BBSY plus 5%, with principal repayable upon project completion and conversion into equipment finance. Facility 2, for $2.38 million, has a lower interest rate of BBSY plus 3.5%, with an interest-only period followed by scheduled amortisation. These terms reflect a strategic balance between cost efficiency and financial flexibility.

Broader Implications for Delorean and NAB

Securing this facility is more than just a financing win; it signals the beginning of a potentially broader banking relationship between Delorean and NAB. The partnership could facilitate quicker and cheaper rollouts of Delorean’s renewable gas projects, supporting Australia’s transition to cleaner energy sources.

Delorean’s Managing Director Joe Oliver highlighted the importance of this milestone, noting that it validates the strength of the SA1 project fundamentals and the growing market appetite for renewable gas. The deal also positions Delorean to deliver multiple projects in parallel, meeting rising demand for renewable energy solutions across the country.

SA1 Salisbury Bioenergy Project Overview

The SA1 plant is designed to process 70,000 tonnes of organic waste annually, producing up to 210 terajoules of renewable natural gas. Supported by a $6.1 million grant from the Australian Renewable Energy Agency (ARENA), the project benefits from long-term offtake agreements with investment-grade counterparties such as Origin Energy and Supagas. These agreements secure revenue streams from biomethane, renewable liquid CO₂, carbon credits, gate fees, and biofertilizer sales.

With construction progressing on schedule and first biomethane exports expected in April 2026, SA1 stands as a flagship project in Delorean’s portfolio, demonstrating the commercial viability and environmental benefits of bioenergy infrastructure.

Bottom Line?

Delorean’s NAB-backed financing not only lowers costs but also accelerates its bioenergy growth trajectory amid rising demand for renewable gas.

Questions in the middle?

• Will Delorean secure a longer-term NAB debt facility for SA1 beyond the current tranches?
• How will the redeployment of Tanarra funds impact the timeline and scale of Delorean’s other bioenergy projects?
• What are the potential risks if construction or commissioning timelines for SA1 slip beyond April 2026?