Delorean Corporation has transitioned to the operations and maintenance phase at its $53 million Yarra Valley Water bioenergy facility, marking a key milestone in its renewable energy expansion.
- Operations & Maintenance phase begins at Lilydale bioenergy facility
- Contract valued at approximately $8 million over 2.5 years
- Facility processes 55,000 tonnes of food waste annually
- Generates over 39,000 kWh of renewable electricity daily
- Annual CO₂ emissions reduction of around 24,700 tonnes
Delorean Moves from Construction to Operations
Delorean Corporation Limited (ASX, DEL) has officially commenced the operations and maintenance (O&M) phase at the Yarra Valley Water Lilydale bioenergy facility in Victoria. This transition follows the practical completion of the $53 million construction project, a significant achievement for the company and a testament to its growing footprint in renewable energy infrastructure.
The O&M contract, valued at approximately $8 million over an initial two-and-a-half-year term, marks the start of steady revenue generation from this facility. It also underscores Delorean’s capability to deliver and manage large-scale bioenergy projects, reinforcing its position in the Australian and New Zealand markets.
Facility Impact and Capabilities
The Lilydale facility is designed to process around 55,000 tonnes of organic food waste annually through anaerobic digestion. This process not only generates over 39,000 kWh of renewable electricity daily but also produces biofertiliser as a by-product, which is repurposed for agricultural use. The renewable electricity primarily supplies Yarra Valley Water’s adjacent sewage treatment plant and recycled water pump station, with surplus energy exported to the grid.
Importantly, the facility contributes to environmental sustainability by reducing approximately 24,700 tonnes of CO₂ emissions each year. This aligns with broader efforts to mitigate climate change impacts through innovative waste-to-energy solutions.
Strategic Growth and Future Prospects
Delorean’s Managing Director, Joseph Oliver, highlighted that this project is the company’s largest construction undertaking to date and the fourth commercial-scale bioenergy facility completed across Australia and New Zealand. The company’s portfolio now spans diverse organic feedstocks, including commercial, industrial, municipal, and agricultural waste.
While the Lilydale facility strengthens Delorean’s O&M revenue base, the company is simultaneously advancing its SA1 Salisbury Build-Own-Operate (BOO) bioenergy project in South Australia. This upcoming facility is expected to generate revenues from organic waste tipping fees, biomethane, and liquid CO₂ sales starting in the third quarter of fiscal year 2026.
Delorean’s integrated approach; from engineering and construction to operations and energy retail; positions it well to capitalize on the growing demand for renewable energy and sustainable waste management solutions.
Bottom Line?
Delorean’s operational milestone at Lilydale sets the stage for scaling its bioenergy footprint amid rising demand for sustainable energy solutions.
Questions in the middle?
- How will the SA1 Salisbury BOO facility impact Delorean’s revenue and profitability?
- What operational efficiencies or challenges might arise during the O&M phase at Lilydale?
- Could Delorean expand its bioenergy projects beyond current markets in Australia and New Zealand?