Delorean Corporation (ASX: DEL) has kicked off FY2025 with a strong performance, revealing a clear focus on scaling its bioenergy projects across Australia. Fresh off record profits in FY2024, the company has secured a $30 million funding package from Tanarra Restructuring Partners, aimed at fast-tracking Delorean’s “build, own, operate” (BOO) bioenergy projects. As the only ASX-listed bioenergy company specialising in BOO projects, Delorean is steadily building momentum in the renewable sector.
Financial Position and Revenue Streams
Delorean’s financial standing remains solid. The company reported a cash balance of $8 million and customer receipts totalling $7.99 million for the quarter. To improve its balance sheet, Delorean redeemed Palisade Impact’s convertible notes, leaving it without convertible debt. This debt reduction strategy was supported by the first $5 million tranche of Tanarra funding, underscoring Delorean’s efforts to streamline finances while advancing its core projects.
Renewable Gas Demand and Market Opportunities
In a market increasingly driven by demand for renewable gas, Delorean finds itself well-positioned to meet the shortfall. With biomethane production front and centre, both government and industry players are seeking Delorean’s renewable natural gas solutions as sustainable energy goals become more pressing. By leveraging its in-house expertise across project design, construction, and operations, Delorean taps into this undersupplied market, serving both waste management and renewable energy needs.
Progress on Key Projects
Yarra Valley Water Bioenergy Plant
At Lilydale, Victoria, Delorean’s $53 million project with Yarra Valley Water is moving steadily, with a focus on transforming food waste into energy. The quarter saw critical milestones completed, including tank construction, site access roads, and the delivery of essential plant equipment. This project, one of the most substantial in Delorean’s portfolio, is advancing as planned, reflecting the company’s ability to handle large-scale, high-profile bioenergy initiatives that also support circular economy principles.
SA1 Project
South Australia’s SA1 project marks Delorean’s first fully-owned BOO bioenergy facility. Supported by $25 million from Tanarra, SA1 is on track for a Final Investment Decision (FID) in the next quarter. This project is an important stepping stone for Delorean as it establishes a new benchmark in bioenergy operations. With investor due diligence and key project components in place, Delorean’s focus on this project exemplifies its long-term strategy of owning and operating large-scale bioenergy assets across Australia.
Brickworks NSW1 Project
In partnership with Brickworks Building Products, Delorean’s NSW1 bioenergy project in New South Wales progressed through a significant development milestone this quarter. The public exhibition of its Environmental Impact Statement was completed, paving the way for final development approvals. Delorean and Brickworks are now honing the project’s timeline and commercial details, setting the stage for a decision on FID. This collaboration highlights Delorean’s approach of partnering with established industry players to create scalable bioenergy solutions.
Expanding the Project Pipeline
Delorean’s ambitions extend across multiple states, with projects in Victoria, Queensland, and Western Australia advancing through development stages. The VIC1 project is shovel-ready and awaiting an investment partner to move to construction, representing a significant opportunity to expand Delorean’s bioenergy footprint in Victoria. Meanwhile, QLD1 in Queensland is advancing through feasibility and is anticipated to reach development approval by the end of FY2025. Together, these projects form the next wave of bioenergy developments, demonstrating Delorean’s proactive approach to scaling operations in response to rising renewable energy demand.
Division Performance and Strategy
The company’s operations are anchored in three primary divisions:
-
Engineering: This division has been pivotal in supporting the Yarra Valley Water and Brickworks NSW1 projects. It also oversees Delorean’s own project engineering, with work underway on regulatory compliance and detailed designs for VIC1, QLD1, and WA2 projects. This in-house capability allows Delorean to streamline project workflows, from early design to full-scale construction.
-
Infrastructure: Delorean’s Infrastructure Division spearheads the BOO bioenergy projects, preparing sites, securing financing, and overseeing construction through to operational readiness. With a robust pipeline led by SA1 and VIC1, the division is expanding Australia’s bioenergy landscape with high-efficiency waste-to-energy projects, reducing reliance on fossil fuels and diverting organic waste from landfills.
-
Energy Retail: Delorean’s Energy Retail Division is strategically gearing up to support Delorean’s infrastructure projects as they become operational. With WA and national retail electricity licences and a Victorian gas licence, this division enables Delorean to manage its energy production, ensuring that renewable electricity and gas generated are sold directly to consumers and businesses.
Corporate Governance and Sustainability
Delorean continues to emphasise strong corporate governance and sustainability practices. It is set to publish its third annual Environmental, Social, and Governance (ESG) report in November 2024, highlighting the company’s progress on environmental targets and social responsibility. The report reflects Delorean’s dedication to transparency and accountability, aligning its business goals with environmental impact and stakeholder interests.
Outlook for Q2 FY2025
Delorean’s outlook for the coming quarter is grounded in several strategic goals:
- Commencing construction for the SA1 project following an FID.
- Progressing the NSW1 project through detailed planning, development approval, and financing, in partnership with Brickworks.
- Continuing work on the Yarra Valley Water project, with a focus on meeting budget and schedule requirements.
- Developing its VIC1, QLD1, and WA2 bioenergy projects to expand its footprint further across Australia.
- Advancing its national grants applications to support these infrastructure projects and secure funding.
With clear growth strategies, a disciplined approach to debt, and a sharpened focus on operational efficiency, Delorean is positioning itself as a leader in Australia’s renewable bioenergy market. Its expanding project portfolio, supported by strategic partnerships and robust financing, underscores Delorean’s ability to deliver high-margin, scalable bioenergy solutions across the nation.
As Delorean moves into the next stages of development and construction for its bioenergy facilities, its unique position on the ASX and its commitment to sustainability make it one to watch in the evolving landscape of renewable energy.
