Can Delorean Turn Losses Around as It Builds Australia’s Bioenergy Future?

Financial Performance and Strategic Pivot

Delorean Corporation Limited has reported a challenging first half of fiscal 2026, with revenues falling 46% to $6.7 million and a net loss of $1.46 million, a stark reversal from the prior period's profit of nearly $1 million. This downturn reflects the company’s strategic pivot from its traditional role as an engineering, procurement, and construction (EPC) contractor towards becoming a build-own-operate (BOO) bioenergy infrastructure owner and operator.

The transition is capital intensive, with Delorean investing heavily in developing and constructing renewable energy assets ahead of operational revenue streams. The company’s asset base grew to $50.6 million, supported by a $200 million portfolio of BOO projects in various stages of development across Australia and New Zealand.

Project Milestones and Operational Progress

Key operational highlights include the practical completion and commencement of operations at the Yarra Valley Water Food Waste to Energy facility in Lilydale, Victoria. This $53 million project marks one of the largest of its kind in Australia and has transitioned into its operations and maintenance phase under an $8 million contract.

Meanwhile, construction continues on the flagship SA1 Salisbury bioenergy project in South Australia, which is on track for commissioning and first gas production in calendar year 2026. This facility is poised to produce mains-grade biomethane and biogenic carbon dioxide, with long-term offtake agreements in place with Origin Energy and Supagas, respectively.

Funding and Financial Challenges

Delorean has secured $11.1 million in grant funding and $51.5 million in debt financing, including a $37 million corporate debt facility with Tanarra Restructuring Partners. However, the company breached financial covenants related to interest coverage and leverage ratios as of 31 December 2025. Tanarra has granted waivers through June 2026 and is working with Delorean to amend covenant terms to better reflect the company’s evolving business model.

Additionally, Delorean has drawn on a $14.5 million project finance facility from National Australia Bank to support SA1’s construction, with repayments structured around project milestones. The company’s cash position stood at $4.8 million at the half-year mark, with ongoing efforts to secure further funding for shovel-ready projects in Victoria and New South Wales.

Leadership and Future Outlook

The company’s leadership team, including Executive Chair Hamish Jolly and Managing Director Joseph Oliver, brings extensive experience in bioenergy and waste management sectors. Their focus remains on delivering recurring, infrastructure-backed earnings from operational BOO assets starting FY2027, alongside expanding the project pipeline and advancing sustainability goals.

Delorean’s strategic partnerships, such as the memorandum of understanding with Opal for feasibility studies on anaerobic digestion facilities, underscore its commitment to innovation and sector leadership. The company also continues to develop projects in Queensland, Victoria, New South Wales, and Western Australia, aiming to capitalise on the growing demand for renewable gas and circular economy solutions.