Delorean Advances Bioenergy Projects with Positive FID for NSW1 and Strong SA1 Construction

NSW1 Horsley Park Bioenergy Reaches Key Investment Milestone

Delorean Corporation (ASX:DEL) marked a significant milestone in April 2026 with a positive Final Investment Decision (FID) for its 100%-owned NSW1 Horsley Park bioenergy facility. The project, backed by $30.5 million in secured grants, is poised to deliver renewable natural gas to Brickworks under a long-term offtake agreement, promising annuity-style revenues that bolster Delorean’s leadership in the Australian bioenergy sector. However, the FID remains conditional on securing the remaining $31.6 million in construction funding within six months, introducing an execution risk that investors should monitor closely. Construction is expected to commence in Q3 2026, contingent on financial close. This development follows earlier coverage of Delorean’s progress on the Final Investment Decision for NSW1 Horsley Park.

Flagship SA1 Salisbury Project Advances with ARENA Support

Meanwhile, Delorean’s flagship Build-Own-Operate (BOO) project at SA1 Salisbury in South Australia continues to gather momentum. Construction progress remained strong throughout the quarter, with critical infrastructure such as the reception shed and weighbridge advancing steadily. The company achieved its second milestone under the $6.08 million ARENA grant agreement, receiving an additional $1.1 million payment, bringing total funding received to $3.8 million. The project remains on track to begin waste acceptance and produce its first gas in 2026. Post-quarter, Delorean appointed Bradley O’Malley as General Manager for SA1 Salisbury, tasked with commercial contracting and enhancing plant economics as the facility moves toward full operations. These developments build on the company’s earlier milestone achievements reported in the $1.1M ARENA milestone for SA1 Salisbury.

VIC1 Stanhope Project Progresses Toward Final Investment Decision

The VIC1 Stanhope bioenergy project in Victoria is advancing steadily, with Delorean progressing strategic partnerships and binding feedstock agreements. Preparations are underway to reach Final Investment Decision in the second half of FY2026, alongside finalising designs and commercial arrangements. The company is gearing up to mobilise its delivery team on-site following the anticipated FID, signalling a clear pipeline of infrastructure rollout in the state.

Strategic Partnership with Opal for Feasibility Study

Delorean has entered into a strategic Memorandum of Understanding and Master Services Agreement with Opal, a major recycling, paper, and packaging manufacturer, to undertake an Opal-funded feasibility study valued at up to $2 million. This study will evaluate the commercial potential of co-located anaerobic digestion facilities at Opal’s Maryvale paper mill in Victoria, potentially forming the basis for a 50/50 joint venture. The partnership aligns with Delorean’s BOO strategy and supports Opal’s decarbonisation goals, opening pathways for future bioenergy developments across Opal’s national footprint.

Operations and Financial Position

The Lilydale Food Waste to Energy facility in Victoria remains in the Operations & Maintenance phase under a contract valued at approximately $8 million over two and a half years. The facility has logged over 1,000 man-hours without incident, reflecting operational stability. Financially, Delorean reported receipts from customers of $0.8 million for the quarter, down 55% from the previous quarter, mainly due to contract timing. Operational costs remained steady with $2 million spent on product manufacturing and operating costs and $1.3 million on payroll and corporate overheads. The company invested $6.6 million in developing its BOO projects, primarily the SA1 Salisbury project.

Delorean closed the quarter with a cash balance of $7.2 million, excluding future grants and R&D tax refund receivables, supported by a total of $51.5 million in financing facilities, of which $45.5 million was drawn. The company’s available funding, combining cash and undrawn facilities, covers an estimated 9.8 quarters of operations at current cash burn rates, providing a reasonable runway ahead.

ESG Commitments and Sector Momentum

Delorean continues to embed sustainability through its Environmental, Social and Governance (ESG) plan, with ongoing progress toward its sustainability goals. The company benefits from strong renewable gas policy momentum in Australia, reinforcing bioenergy’s critical role in the country’s decarbonisation journey. Its diversified revenue streams span EPC and O&M contract margins, renewable gas and biogenic CO2 sales, gate fees for organic waste acceptance, and trading of environmental credits such as Australian Carbon Credit Units and Renewable Gas Guarantees of Origin.