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- Delorean (DEL), through its subsidiary Delorean Energy, has acquired 100 per cent of the Salisbury Bioenergy Project for $2.1 million
- The acquisition will see organic food and cultural waste processed to deliver 150 terajoules per annum of biomethane into the gas distribution network in Adelaide, under an offtake agreement with Origin Energy
- With sole ownership of the project, Delorean says it intends to complete the project investment under a finance package with cash and debt facilities
- The project is now expected to move into its construction phase before September 2021
- Delorean shares are up 3.33 per cent, trading at 23.3 cents
Delorean (DEL), through its subsidiary Delorean Energy, has acquired 100 per cent of the Salisbury Bioenergy Project for $2.1 million.
The acquisition will see commercial and industrial organic food and cultural waste processed to deliver 150 terajoules per annum of biomethane into the gas distribution network in Adelaide, under an offtake agreement with Origin Energy.
The project is set to be the first in Australia to achieve the ‘green gas to mains’ milestone.
Delorean will acquire Clean Peak Energy’s 70 per cent share of Delorean Energy SA One (DESAO) for $2.1 million, after previously holding a 30 per cent stake in the project.
The project assets include project land in Edinburgh Parks, purchased in October 2019 for $1.05 million, plus a 4.68-megawatt export grid connection and full development approval for the construction of a Bioenergy Anaerobic Digestion facility processing 125 kilotonnes per annum of organic waste.
The assets also include $360,000 in cash held in DESAO, $100,000 in South Australian government grant funding, with a further $50,000 on facility operating reports to total $1 million.
With sole ownership of the project, Delorean says its intention is to complete the project investment under a finance package including cash and debt facilities with Commonwealth Bank, supported by approved and pending Government-funded concessional loans and grants.
The project will be fully-funded by existing cash reserves and facilities, with the company expecting no further equity funding required for the project.
“We are excited to have full ownership of the project so we can complete the financial investment decision and progress to construction with certainty in a timeline that we can control,” said Delorean Managing Director, Joe Oliver.
“Renewable gas is key in decarbonising the gas network and we are pleased to be pioneering this with a project at commercial scale in Australia.”
The project is now expected to move into construction before September 2021.
Delorean shares are up 3.33 per cent, trading at 23.3 cents at 1:30 pm AEST.
