Delorean Reports $1.8M Quarterly Receipts, $2.7M ARENA Grant Boosts SA1 Project

Delorean’s Strategic Progress in Bioenergy Infrastructure

Delorean Corporation Limited (ASX – DEL) has marked a significant milestone with the practical completion of its $53 million Food Waste to Energy facility in Lilydale, Victoria, under contract with Yarra Valley Water. This achievement transitions the project into its operations and maintenance phase, valued at approximately $8 million over the initial two-and-a-half-year term, underscoring Delorean’s capability to deliver large-scale bioenergy infrastructure.

Meanwhile, construction at the SA1 Salisbury bioenergy project in South Australia continues apace. With all major earthworks completed, the erection of the reception shed and anaerobic digestion tanks underway, and concrete slabs being poured, the project is on track for waste acceptance and first gas production in 2026. The company also secured a $2.7 million grant from ARENA, reinforcing the project’s financial foundation and government support for renewable energy initiatives.

Development Pipeline and Strategic Partnerships

Delorean’s VIC1 Stanhope project in Victoria is progressing steadily towards a Final Investment Decision (FID) expected in the second half of FY26. The company is advancing strategic partnerships and binding feedstock agreements, laying the groundwork for mobilising its delivery team on-site post-FID. This reflects Delorean’s methodical approach to scaling its bioenergy footprint across Australia.

In contrast, the NSW1 Horsley Park project faced a setback as Brickworks elected not to proceed to FID. Despite this, Delorean remains engaged in exploring alternative pathways to bring the project to construction, highlighting the company’s resilience and adaptability in navigating project uncertainties.

Adding to its growth prospects, Delorean entered a strategic Memorandum of Understanding and Master Services Agreement with Opal, a major recycling and paper manufacturer. This partnership initiates a feasibility study valued at up to $2 million to assess anaerobic digestion facilities at Opal’s Maryvale paper mill, potentially leading to a joint venture. This aligns with Delorean’s Build-Own-Operate (BOO) model and supports Opal’s decarbonisation goals.

Financial Health and Policy Tailwinds

Financially, Delorean reported receipts from customers of $1.8 million for the quarter, a 23% increase from the previous quarter, primarily driven by the Yarra Valley Water contract. Operational expenditure decreased to $2 million, reflecting the transition to the operations phase, while project development spend increased to $5 million, mainly on the SA1 project. The company ended the quarter with a cash balance of $4.8 million, excluding future grants and R&D tax refunds, and benefits from unused financing facilities totaling $16.4 million.

Delorean’s momentum is further supported by the NSW Government’s Renewable Fuels Strategy and the establishment of the NSW Renewable Fuel Scheme, positioning renewable gas as a cornerstone of the state’s decarbonisation efforts. This policy environment enhances the commercial viability of Delorean’s renewable gas production and bioenergy projects.

Commitment to Sustainability and Governance

Beyond project execution, Delorean continues to prioritise Environmental, Social, and Governance (ESG) principles. The company released its fourth ESG report this quarter, detailing sustainability milestones and ongoing progress toward future goals. This commitment not only aligns with stakeholder expectations but also strengthens Delorean’s positioning in a sector increasingly driven by environmental accountability.