Renewable Gas Gains Momentum with Delorean’s SA1 Project
The push for renewable energy in Australia has received a major boost, with Delorean Corporation Ltd (ASX:DEL) securing a $6.08 million grant from the Australian Renewable Energy Agency (ARENA). The funding will accelerate the development of the company’s SA1 bioenergy facility in Edinburgh Parks, South Australia.
Delorean Managing Director Joe Oliver highlighted the significance of this investment.
“This significant grant investment from ARENA is a game-changer for Delorean and the Australian energy sector,” Oliver said. “It not only enables us to achieve a major milestone with the SA1 project, but it also creates long-term, sustainable revenue streams that will underwrite the viability of the project.”
Transforming Organic Waste into Clean Energy
The SA1 facility is designed to process organic waste diverted from landfills, converting it into renewable gas and biogenic liquid carbon dioxide (LCO2). This innovative approach not only reduces landfill waste but also supports industrial users in cutting emissions by providing a reliable source of renewable energy.
ARENA CEO Darren Miller underscored the project’s importance in industrial decarbonisation.
“By using food and organic waste and transforming it into renewable gas, Delorean’s project shows an innovative approach to reducing emissions in hard-to-abate sectors while supporting a circular economy,” Miller said.
Upgrading Infrastructure for Biomethane Production
The ARENA grant will support the procurement, installation, and commissioning of critical infrastructure upgrades. A key aspect of these upgrades is enabling the production of mains-grade biomethane, which will be injected into the Australian Gas Infrastructure Group’s (AGIG) gas network.
Oliver explained how this positions Delorean for long-term success. “It highlights the bankability of Delorean’s near-term and medium-term development pipeline. We are proud to be part of Australia’s renewable energy future.”
Renewable Gas Certificates and Market Potential
Another crucial outcome of the SA1 facility’s expansion is the production of Renewable Gas Guarantee of Origin Certificates (RGGOs) under GreenPower’s certification scheme. These certificates verify the renewable origin of the gas and enhance the commercial value of biomethane in Australia’s energy markets.
Additionally, the project will produce biogenic food-grade LCO2, which has applications across multiple industries, from food and beverage manufacturing to industrial processing.
Securing Key Offtake Agreements
The ARENA grant is conditional upon Delorean finalising key commercial agreements, including a biomethane offtake agreement with an industrial user. Negotiations are currently underway with major industrial gas consumers, positioning Delorean to meet this requirement and establish stable long-term revenue streams.
“Increasingly, Australian industrial companies are looking to integrate biomethane into operations as a practical and near-term way to cut emissions while maintaining reliability,” Miller noted. “ARENA’s support for high-impact demonstration projects will allow biomethane to play a growing role in Australia’s clean energy transition.”
A Step Toward a Low-Carbon Economy
With the SA1 facility progressing rapidly, Delorean is reinforcing its role as a leader in Australia’s bioenergy sector. By converting organic waste into valuable energy products, the company is not only addressing environmental concerns but also unlocking new economic opportunities.
For investors and industry stakeholders, Delorean’s latest funding milestone signals confidence in the company’s ability to execute large-scale renewable projects. As the demand for sustainable energy solutions continues to grow, Delorean’s SA1 facility is set to play a crucial role in Australia’s shift to a cleaner energy future.
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