Delorean is repositioning itself from an engineering contractor into an owner and operator of renewable gas infrastructure, with five projects representing $214 million of stated total capital expenditure. The near-term test is whether it can close funding for NSW1 while bringing its largely completed Salisbury plant into revenue.
- $214 million portfolio across five renewable gas projects
- 15% or higher target unlevered project IRRs
- NSW1 requires financial close for its $62.1 million build
- SA1 Salisbury is 85% complete with first revenues expected in 2026
- FY2026 revenue of $9.3 million and EBITDA of $1.0 million
Delorean shifts from EPC work to owned infrastructure
Delorean Corporation Ltd (ASX:DEL) is asking investors to value it less as a project contractor and more as a renewable gas infrastructure owner. Its October investor update outlines five near-term projects with total stated capital expenditure of $214 million, backed by a target of at least 15% unlevered project internal rates of return.
The proposed model combines gate fees for accepting organic waste with biomethane sales, environmental credits, renewable gas certificates, biogenic liquid carbon dioxide and, potentially, biofertiliser. Delorean says the assets are intended to generate contracted revenues over operating lives of 10 to 25 years or more, although the return figures remain targets rather than reported outcomes.
NSW1 remains the immediate funding hurdle
The Horsley Park project in New South Wales is the clearest near-term financing test. Delorean puts gross construction cost at $62.1 million, with $30.5 million of government grants secured and a $20 million non-binding Westpac financing agreement. The project also has a 25-year lease and biomethane offtake arrangement with Brickworks, part of Soul Patts (ASX:SOL).
The update repeats the NSW1 funding case after the Westpac financing mandate was reported as non-binding. Delorean says roughly $11.6 million of equity would complete the project’s funding, activate the grants and support a 120,000-tonne-a-year stage-one facility, with construction anticipated to begin in December 2026. That timing remains dependent on financial close.
Salisbury approaches first operating revenue
South Australia’s SA1 Salisbury project is further advanced. The facility is described as 85% complete and is expected to begin receiving waste and generating revenue in 2026. Stage one is designed to process 70,000 tonnes of feedstock a year, produce about 210 terajoules of biomethane and generate 7,000 tonnes of renewable liquid biogenic carbon dioxide.
Delorean says the project has $7.74 million in ARENA grant funding, about $55 million of revenue locked in, and offtake arrangements with Origin Energy (ASX:ORG) for renewable gas and Supagas for biogenic carbon dioxide. The SA1 ARENA milestone had already advanced the project towards production, but the remaining operational licence, commissioning and sales milestones are still material.
Small current earnings against a larger capital plan
Delorean reported FY2026 revenue of $9.3 million, total income of $14.8 million and EBITDA of $1.0 million, alongside $5.6 million of cash and term deposits at 30 June 2026. Gross assets stood at $64 million, while the presentation said $43 million of grants had been awarded, including $30.5 million still subject to financial close.
The scale-up ambition is substantial relative to that existing base: the five-project portfolio is presented at $214 million of capital expenditure, 394,000 tonnes of annual feedstock and 988 terajoules of annual biomethane capacity. A longer-term 50-project platform is also outlined, but that remains an aspirational pipeline rather than an operating asset base.
Bottom Line?
The investment case now turns on execution: binding NSW1 finance, grant drawdowns and proof that SA1 can convert construction progress into recurring operating revenue.
Questions in the middle?
- Can Delorean secure binding finance and equity for NSW1 before the targeted December construction start?
- Will SA1 obtain its operating licence and begin biomethane and carbon dioxide sales during 2026?
- Can the targeted 15% plus project returns be achieved once construction, feedstock and operating costs are tested in live assets?