Delorean Opens Path to Maryvale Renewable Gas Facility
3 min read
9:11am on Wednesday 23rd of September, 2026 AEST ~9am, 23rd Sept, 26
Delorean Corporation and Opal have completed the concept stage for a proposed anaerobic digestion facility at Opal’s Maryvale Mill in Victoria. The project could replace natural gas used by the mill’s rotary lime kiln, but still requires further engineering, commercial work and a final investment decision.
- Concept stage completed under existing Opal services agreement
- Potential conversion of organic residues into renewable gas
- Estimated construction and design investment of $35 million
- Possible 50/50 joint venture with Delorean first right of refusal
- Project remains subject to development, approvals and final investment decision
Maryvale Project Advances Beyond Initial Feasibility
Delorean Corporation (ASX:DEL) has cleared the concept stage for a proposed large-scale anaerobic digestion facility at Opal’s Maryvale Mill in Victoria, identifying a potential route to turn organic residues and paper manufacturing by-products into renewable gas.
The Opal-funded work covered concept design, desktop environmental and planning assessments, architectural drawings, feedstock discussions and an independent review of the organics waste market. The feasibility study confirmed the project’s potential, according to Delorean, but did not amount to an approval to build.
Renewable Gas Could Replace Mill Natural Gas
If developed, the facility could produce biogas for use at Maryvale’s rotary lime kiln, replacing some of the natural gas currently consumed by the mill. That gives the proposal a clear industrial use case rather than leaving the renewable gas dependent on an external market or uncommitted offtake.
Opal General Manager Environment and Sustainability David Jettner said exploring biogas as a natural-gas alternative aligned with the company’s “new energy future” and could potentially be replicated across other Opal sites with high natural-gas consumption. Delorean Managing Director Joseph Oliver said, subject to front-end engineering and design, the model could potentially be rolled out to additional Opal locations.
$35 Million Estimate Still Sits Ahead of Final Decision
The project is currently estimated to require approximately $35 million of construction and design investment, subject to further engineering and development. Delorean and Opal will now enter the Development Stage, which is intended to test viability in greater detail and establish the commercial terms needed to decide whether the project proceeds to Final Project Development Approval, or Final Investment Decision.
The existing memorandum of understanding provides for a potential 50/50 joint venture if the project advances, with Delorean holding a first right of refusal for 50% equity, subject to agreed terms. That structure is consistent with Delorean’s build-own-operate strategy and could give the company exposure to a long-term renewable gas asset, although no final joint venture or investment commitment has been announced.
The next milestones are therefore less glamorous but more consequential: engineering, planning and environmental work, feedstock arrangements, commercial negotiations and funding. Delorean has warned that regulatory approvals, commercial viability and market conditions could materially affect the outcome, leaving the $35 million figure and any future recurring revenue firmly at the feasibility stage for now.
Bottom Line?
Maryvale has moved from concept to development, but the value of the opportunity will depend on whether engineering, feedstock supply, commercial terms and funding can support a final investment decision.
Questions in the middle?
- Can the development work secure sufficient organic residues and paper by-products for a commercially viable facility?
- What commercial structure and funding arrangements would support the estimated $35 million investment?
- Will Delorean and Opal ultimately commit to the proposed 50/50 joint venture and proceed to construction?
