Delorean Corporation has received a $1.66 million milestone payment from ARENA, advancing its SA1 Salisbury bioenergy facility towards renewable gas production and multiple revenue streams.
- Third ARENA grant milestone payment of $1.66 million received
- Total ARENA funding now $5.46 million of $7.74 million agreement
- SA1 Salisbury facility under construction in South Australia
- Project to produce renewable natural gas and biogenic CO2
- Long-term gas offtake agreement secured with Adelaide network
ARENA Grant Boosts SA1 Salisbury Construction
Delorean Corporation (ASX:DEL) has banked a $1.66 million milestone payment from the Australian Renewable Energy Agency (ARENA), marking the third tranche under a $7.74 million grant supporting its SA1 Salisbury bioenergy facility. This latest cash injection brings total grant receipts to $5.46 million, underscoring steady progress on the project’s construction in Edinburgh Parks, South Australia.
The funding specifically covers procurement, installation, and commissioning of critical infrastructure upgrades designed to enhance the plant’s capacity to produce and upgrade biogas into mains-grade biomethane and biogenic CO₂. These renewable gases will be fed into the Adelaide gas network under a long-term offtake agreement, positioning Delorean to supply green energy to South Australian industry.
Multi-Product Bioenergy Facility Nears Completion
SA1 Salisbury is a 100% Delorean-owned project located strategically within the Northern Adelaide Food Park. Stage 1 targets processing 70,000 tonnes of organic waste annually to generate up to 210 TJ of renewable natural gas (biomethane). The facility also plans to produce six distinct products and revenue streams, including renewable food-grade liquid CO₂, carbon credits (ACCUs), renewable gas guarantees of origin, liquid fertilisers, and gate fees.
Future expansion under Stage 2 could increase organic waste processing capacity to 125,000 tonnes per annum, following existing development approvals. The project’s integrated design aims to reduce landfill waste while generating multiple income sources, reflecting Delorean’s vertically integrated approach spanning engineering, infrastructure, and energy retail divisions.
Strategic Positioning in Renewable Energy and Waste Management
Delorean’s SA1 Salisbury facility is on track to become a cornerstone project in Australia’s renewable gas sector, building on its recent accreditation under GreenPower’s Renewable Gas Certification. This accreditation enables the issuance of Renewable Gas Guarantee of Origin certificates, bolstering the project’s environmental credentials and market appeal.
With construction advancing, the company edges closer to commissioning and first renewable gas injection, anticipated in late 2026. The long-term offtake agreement with the Australian Gas Infrastructure Group (AGIG) secures a route to market for biomethane, anchoring the project’s commercial viability.
Delorean’s ability to leverage government grants such as ARENA’s funding, alongside other capital initiatives, highlights a pragmatic approach to financing its bioenergy infrastructure. This milestone payment reflects tangible progress amid a broader push towards decarbonising Australia’s energy and waste sectors.
Bottom Line?
Delorean’s latest ARENA milestone payment signals tangible advancement for its SA1 Salisbury bioenergy project, but investors will be watching for commissioning timelines and commercial gas production.
Questions in the middle?
- When will Delorean officially commence renewable gas injection at SA1 Salisbury?
- How will the company progress Stage 2 expansion plans amid current approvals?
- What are the financial implications of the long-term offtake agreement with AGIG?