Delorean’s flagship Salisbury bioenergy plant is 90% complete and now licensed to operate, while a proposed A$20 million Westpac facility could unlock its next major project. The catch is a quarterly operating cash outflow of A$2.52 million, leaving 2.52 quarters of funding on the company’s own calculation.
- SA1 Salisbury reaches 90% construction completion
- South Australian EPA operational licence issued after quarter end
- Non-binding A$20 million Westpac financing mandate for NSW1
- A$2.48 million cash balance and A$6.35 million total available funding
- Opal Maryvale concept study confirms renewable gas potential
Salisbury moves from construction towards commissioning
Delorean Corporation Limited (ASX:DEL) has moved its flagship Salisbury project closer to commercial operation, with construction now 90% complete and an operational licence issued by the South Australian Environment Protection Authority after the quarter ended. The company expects SA1 to begin accepting waste, producing renewable gas and injecting biomethane into Adelaide’s gas network during FY2027.
The facility received a A$1.66 million milestone payment from the Australian Renewable Energy Agency during the September quarter, taking total receipts under its A$7.74 million grant agreement to A$5.46 million. Biomethane upgrading equipment has been installed, while liquid carbon dioxide equipment remains in progress. The project also won the sustainability category at the 2026 AFR Energy Awards, although the immediate commercial test remains first waste acceptance and successful commissioning. The licence milestone had already been reported in the Salisbury operational licence coverage earlier this month.
Westpac mandate leaves NSW1 funding unfinished
Delorean also disclosed a proposed A$20 million project financing arrangement with Westpac for its 100%-owned NSW1 Horsley Park facility. The agreement and mandate are non-binding, and financial close still depends on finalising the Westpac documentation and securing the remaining funding arrangements.
Construction is targeted to start in December 2026, subject to financial close. The update advances the financing process but does not yet deliver committed debt funding. That distinction matters for a company whose wider strategy depends on moving from engineering work into ownership and operation of renewable gas assets. The proposed facility follows the Westpac NSW1 financing mandate, which previously identified the need for binding documents and additional funding before close.
Operating cash flow remains the immediate constraint
Delorean ended September with A$2.483 million in cash and A$3.870 million of unused financing facilities, giving total available funding of A$6.353 million. Net cash used in operating activities was A$2.523 million for the quarter, while A$4.312 million went into property, plant and equipment, primarily SA1 development.
On the Appendix 4C calculation, that combination represents 2.52 quarters of funding at the quarter’s operating cash usage. The measure excludes A$1.1 million of customer variation receipts received on 1 October, as well as future SA1 grant milestones and the FY2026 research and development tax refund. Those potential inflows may alter the cash position, but they are not included in the reported runway calculation. Customer receipts were A$0.8 million, down from A$1.06 million in the June quarter.
Opal study expands the renewable gas pipeline
At Opal’s Maryvale paper mill in Victoria, Delorean and Opal completed the concept stage of a feasibility study under their existing master services agreement. The study identified potential to use organic residues and possibly paper-manufacturing by-products to produce renewable gas through anaerobic digestion.
The proposal could become a 50/50 joint venture, with Delorean holding a first right of refusal for 50% equity if the feasibility study succeeds. It remains a development opportunity rather than a committed project. Delorean’s wider near-term portfolio is valued at more than A$200 million, with a longer-term pipeline exceeding A$500 million and targeted unlevered project returns of at least 15%, but those targets sit alongside the practical need to fund construction and reach operations.
Bottom Line?
Salisbury is nearing its most important operational test, while NSW1 still needs binding finance. The next few months will show whether commissioning progress and funding commitments can arrive before the reported cash runway becomes the central story.
Questions in the middle?
- When will Delorean complete financial close and convert the Westpac NSW1 mandate into binding funding?
- Can SA1 accept its first waste and inject renewable gas during FY2027 without further funding pressure?
- How much of the reported cash runway will be extended by grant milestones, customer receipts and the expected R&D tax refund?