Delorean Advances $200M Bioenergy Pipeline with Capital Raise and Project Milestones

Strategic Capital Injection Boosts Bioenergy Ambitions

Delorean Corporation Limited (ASX:DEL) fortified its balance sheet this quarter with a $2.95 million capital raise, comprising a $2.2 million strategic placement to LMS Energy, now a near 10% shareholder, and a $750,000 Share Purchase Plan from existing investors. These funds are earmarked to accelerate the rollout of Delorean’s build-own-operate (BOO) bioenergy infrastructure pipeline, which exceeds $200 million in value and is underpinned by government grants and long-term offtake agreements.

SA1 Salisbury Facility Nears Operational Readiness

Construction of the SA1 Salisbury bioenergy plant in South Australia is now over 80% complete, with the facility on track to begin accepting organic waste and injecting renewable gas into Adelaide’s network within 2026. The project recently secured GreenPower accreditation, enabling it to issue Renewable Gas Guarantee of Origin (RGGO) certificates, a key commercial milestone that supports market recognition of its biomethane production. Delorean also received a $1.66 million milestone payment from ARENA, bringing total grant funding to $5.46 million of a $7.74 million agreement, reinforcing the project’s financial foundation. This progress confirms the facility’s pivotal role in Delorean’s strategy to commercialise renewable natural gas at scale in Australia.

NSW1 Horsley Park Project Clears Final Investment Decision

The Delorean Board approved a positive Final Investment Decision (FID) for the NSW1 Horsley Park bioenergy facility in New South Wales, backed by $30.5 million in secured government grants. This 100%-owned project has a long-term gas supply agreement with Brickworks, promising stable, annuity-based revenues. Delorean is actively negotiating with debt and equity providers to secure the remaining $31.6 million needed to reach financial close by mid-October 2026, a critical condition for construction commencement. The outcome of these funding discussions will be a key catalyst for the company in the coming months.

Operational and Development Highlights

Delorean’s engineering division continues to operate the Lilydale Food Waste to Energy facility under an $8 million contract with Yarra Valley Water, contributing steady cash flow. Meanwhile, the company is progressing a $2 million feasibility study with Opal at its Maryvale paper mill in Victoria, exploring anaerobic digestion opportunities that could evolve into a 50/50 joint venture under Delorean’s BOO model. This partnership aligns with broader decarbonisation goals and could unlock additional bioenergy projects across Opal’s national footprint.

Financial Position and Market Engagement

Delorean closed the quarter with $5.6 million in cash, excluding forthcoming grants and R&D tax refund receivables. The company received a substantial $5.76 million cash refund under the FY2025 R&D Tax Incentive, with another expected for FY2026 expenditure. Operating receipts rose 29% to $1.06 million, primarily from the Yarra Valley Water contract. While manufacturing and operating costs fell 21% quarter-on-quarter, corporate and finance expenses increased due to interest payments on debt facilities. Delorean’s total available funding, including unused credit lines, stands at $11.6 million, providing a buffer to support ongoing operations and project development.

Policy Tailwinds and Industry Positioning

Delorean’s recent membership in the Clean Energy Council signals its intent to deepen engagement with Australia’s clean energy ecosystem. The company benefits from strong policy momentum underpinning renewable gas, including federal and state mechanisms aimed at organic waste diversion and industrial decarbonisation. Internationally, biomethane markets in Europe and the UK provide a blueprint for growth, backed by robust regulatory frameworks and investment incentives. Delorean’s integrated model, spanning infrastructure development, engineering services, and energy retail, positions it to capitalise on these trends as Australia’s energy transition unfolds.