Delorean Corporation has teamed up with Paper Australia (Opal) to explore a renewable energy project at the Maryvale Paper Mill, aiming to convert organic waste into green gas and electricity through anaerobic digestion.
- Feasibility study funded by Opal valued up to $2 million
- Potential 50/50 joint venture to develop anaerobic digestion facility
- Delorean holds first right of refusal for 50% equity
- Project aligns with Opal’s decarbonisation and energy security goals
- Master Services Agreement secures ongoing development services
Strategic Collaboration Takes Shape
Delorean Corporation Limited (ASX – DEL), a leader in bioenergy infrastructure, has announced a strategic collaboration with Paper Australia Pty Ltd (Opal), a major player in the Australian and New Zealand paper and packaging sector. The partnership focuses on assessing the feasibility of an anaerobic digestion (AD) facility at Opal’s Maryvale Paper Mill in Victoria. This facility would convert organic waste by-products into renewable gas and electricity, supporting Opal’s ambitious decarbonisation targets.
The collaboration is structured around a feasibility study funded by Opal, valued at up to $2 million. This study will evaluate the technical, financial, and environmental viability of the project, marking a significant step towards integrating renewable energy solutions within industrial operations.
A Joint Venture with Long-Term Vision
Should the feasibility study confirm the project’s commercial viability, the two companies intend to form a 50/50 joint venture to develop, construct, and operate the AD facility over a projected 25-year asset life. Delorean will hold the first right of refusal for its 50% equity stake, positioning the company to capture substantial long-term value aligned with its Build-Own-Operate (BOO) strategy.
This JV model not only shares the risks and rewards but also leverages Delorean’s expertise in bioenergy infrastructure and Opal’s substantial organic waste streams and energy needs. The facility aims to produce renewable gas and electricity that will be supplied directly to Opal’s operations, enhancing energy security and reducing reliance on fossil fuels.
Master Services Agreement and Exclusivity
Alongside the MOU, a Master Services Agreement (MSA) has been executed, establishing a standing offer for Delorean to provide development services. The initial contract under this MSA pertains to the Maryvale site, ensuring Delorean’s active role in the project’s progression.
Importantly, Delorean has secured exclusivity for its mesophilic AD technology at the Maryvale site during key development phases, protecting its competitive position. This exclusivity, combined with the JV structure, underscores the strategic importance of this partnership for both parties.
Aligning with Sustainability and Growth
For Opal, this initiative is a critical component of its Net Zero strategy, aiming to replace natural gas with renewable alternatives. David Jettner, Opal’s General Manager of Environment and Sustainability, highlighted the company’s excitement about working with Delorean, citing their proven track record in biomethane and biogas solutions.
Delorean’s Managing Director, Joseph Oliver, emphasized the opportunity this partnership presents to deploy AD technology at scale with a blue-chip industrial partner. The collaboration not only supports Opal’s sustainability goals but also aligns with Delorean’s growth ambitions in renewable energy and waste management sectors.
Looking Ahead
While the MOU remains non-binding except for exclusivity and confidentiality clauses, the structured approach and clear commercial principles provide a solid foundation for advancing the project. The coming months will be critical as the feasibility study unfolds, setting the stage for potential JV formation and project development.
Bottom Line?
Delorean’s partnership with Opal could redefine renewable energy integration in industrial waste management, with the feasibility study results poised to shape the next phase.
Questions in the middle?
- Will the feasibility study confirm the project’s commercial viability and regulatory approvals?
- How will the joint venture structure evolve, and will additional investors be involved?
- What impact will this project have on Delorean’s revenue streams and market positioning?