Delorean Corporation has secured a non-binding $20 million financing mandate from Westpac for its NSW1 Horsley Park bioenergy project, taking identified funding to about 81% of the estimated build cost. The project still needs binding finance documents and a further $11.6 million before financial close can be reached.
- $20 million non-binding Westpac asset finance and trade facilities
- Identified funding rises to $50.5 million of the $62.1 million project cost
- Financial close extended to 18 November 2026
- Construction targeted for December 2026, subject to funding
- Brickworks offtake expected to cut site Scope 1 emissions by about 38%
Westpac mandate covers most of NSW1 funding
Delorean Corporation Limited (ASX:DEL) has put a substantial piece of the funding puzzle in place for its Horsley Park bioenergy project, with Westpac agreeing in principle to provide $20 million for capital plant and equipment. The proposal is non-binding, however, and the bank facilities still require detailed financing documents before they can be counted as committed project debt.
If those documents are signed, the proposed Westpac facilities would sit alongside $30.5 million in already signed NSW and federal government grants. Together, the identified funding would cover $50.5 million, or approximately 81%, of NSW1's estimated $62.1 million capital cost. Delorean says the remaining $11.6 million is expected to come from a mix of working capital, research and development tax refunds, equity and debt.
Financial close moves to 18 November
Delorean and Brickworks have extended the agreed financial close timeframe to 18 November 2026, giving the company additional time to finalise the Westpac asset finance and trade facilities and assemble the balance of the funding package. The project will not move into construction until those conditions are met, with initial works currently targeted for December.
The financing milestone arrives as Delorean develops a second commercial-scale project alongside its more than 85%-complete SA1 Salisbury facility. Recent coverage noted the company had received NSW1 grant support as part of its wider build-out, while SA1 remains a separate test of commissioning and funding execution. The proposed Westpac terms are described by Delorean as more favourable than the existing financing for SA1, which the company attributes to the growing maturity of its project portfolio.
Brickworks offtake anchors Horsley Park project
NSW1 is designed as a 100%-owned and operated facility on Brickworks' land beside its Horsley Park brickworks. Under a 25-year lease and an offtake arrangement running from first gas to the end of the lease, Delorean would process source-separated organic waste and pipe mains-grade biomethane directly to the manufacturing site.
The proposed facility is sized to process 120,000 tonnes of organic waste a year, with approval for up to 150,000 tonnes, and to produce about 253,000 gigajoules of biomethane annually. Delorean estimates that would replace around half of the brick plant's natural gas use and reduce the site's overall Scope 1 emissions by about 38%. Those figures remain project estimates, dependent on construction and operating performance.
Construction depends on the final funding gap
Delorean estimates a construction period of about 21 months, with commissioning in 2028 and initial revenue from waste acceptance and first gas within roughly 20 months. The project is expected to draw revenue from gate fees, renewable gas and Australian Carbon Credit Units, with possible additional income from NSW renewable fuel certificates and liquid fertiliser.
Managing Director Joe Oliver said the Westpac mandate demonstrated confidence in the project's fundamentals and its Tier 1 customer partnerships, describing NSW1 as a potential first for industrial-scale renewable gas delivered behind the meter to Australian manufacturing. The immediate test is less theoretical: whether Delorean can turn a non-binding $20 million proposal and an $11.6 million funding requirement into financial close by 18 November.
Bottom Line?
The financing headline is substantial, but NSW1 remains conditional on binding Westpac documents and the final $11.6 million funding package before construction can begin.
Questions in the middle?
- Will Westpac convert the non-binding mandate into signed asset finance and trade facilities before 18 November?
- How will Delorean fund the remaining $11.6 million without disrupting its existing projects or capital position?
- Can NSW1 reach first gas on the proposed timetable while maintaining its estimated cost and emissions outcomes?