Delorean Corporation (ASX: DEL) Secures $62.1 Million Bioenergy Project as Renewable Gas Growth Accelerates

Delorean Corporation (ASX: DEL) has secured financial close on its $62.1 million Horsley Park bioenergy project, marking a significant milestone in its expansion into Australia's renewable gas market.

The 9 November 2026 development activates $30.5 million in government grants and advances a 25-year renewable gas supply agreement with Brickworks, providing a stronger foundation for long-term recurring revenue.

With its Salisbury facility also approaching commissioning, Delorean is entering an important phase where infrastructure development could begin translating into commercial production and improved financial performance.

Key numbers

• $62.1 million: Total development cost of the Horsley Park bioenergy facility.
• $30.5 million: Government grants supporting Horsley Park.
• 253,000 gigajoules: Expected annual renewable gas production at Horsley Park.
• $55 million: Potential contracted revenue associated with Salisbury over 10 years.
• $2.48 million: Cash and cash equivalents at 30 September 2026.

The $62.1 million milestone strengthens Delorean's growth ambitions

Financial close on the NSW1 Horsley Park project represents a major advancement in Delorean's strategy to become an established owner and operator of renewable energy infrastructure.

The facility is designed to process approximately 120,000 tonnes of organic waste annually, producing biomethane for Brickworks' neighbouring manufacturing operations.

Expected annual production of approximately 253,000 gigajoules could replace around 50% of the manufacturing facility's natural gas consumption.

The funding package includes $20 million from the NSW Government, $10.5 million from the Australian Renewable Energy Agency and a $20 million Westpac trade finance facility.

Delorean has also secured $1.4 million in placement commitments and entered a binding term sheet with Tanarra for a proposed financing facility of up to $10 million.

Although the Tanarra arrangement remains subject to definitive documentation, the broader funding progress represents an important step towards construction.

Procurement is scheduled to commence in November 2026, with onsite construction expected during the first quarter of 2027.

The 25-year Brickworks arrangements provide valuable commercial visibility, positioning Horsley Park as a potentially significant long-term contributor to Delorean's renewable gas operations.

Salisbury moves closer to unlocking recurring revenue

Delorean's SA1 Salisbury project in South Australia offers another important near-term growth opportunity.

Construction had reached approximately 90% completion by 30 September 2026, while the facility received its operational licence from South Australia's environmental regulator on 20 October.

The project is targeting first waste acceptance, renewable gas production and gas network injection during FY2027.

An eight-year take-or-pay agreement with Origin Energy covers up to 200 terajoules of biomethane annually, with an option to extend for another two years.

Combined with an existing carbon dioxide offtake agreement with Supagas, Delorean has identified up to $55 million in contracted revenue potential over 10 years.

These arrangements provide a meaningful foundation for future income, subject to successful commissioning and operational performance.

Importantly, Salisbury could demonstrate the commercial viability of Delorean's build-own-operate model, supporting its ambitions to develop additional renewable gas infrastructure across Australia.

Financial progress highlights an evolving business model

Delorean's FY2026 financial results reflect a business transitioning away from construction-dependent revenue towards infrastructure ownership and recurring energy income.

Revenue declined approximately 52% to $9.34 million from $19.52 million in FY2025, primarily reflecting completion of major construction activities.

However, gross profit improved to approximately $691,000 from a $3.29 million loss in the previous financial year.

EBITDA reached approximately $985,000, while the statutory net loss narrowed substantially to $115,000.

Although approximately $5.41 million in other income contributed to the result, the improvement in gross profitability provides an encouraging indication of operational progress.

Operating cash outflows totalled $5.87 million for FY2026, with another $2.52 million recorded during the September quarter.

The company reported $47.64 million in drawn loan facilities at quarter-end, highlighting the importance of disciplined capital management as development activity accelerates.

While conventional earnings-based valuation remains difficult at this stage, successful commissioning and recurring cash generation could provide a stronger foundation for assessing Delorean's long-term economic value.

Insight: Could renewable gas infrastructure transform Delorean's earnings?

What stands out to us is Delorean's growing portfolio of long-term commercial agreements, particularly Horsley Park's $62.1 million development and Salisbury's potential $55 million revenue pipeline. Together, these projects could establish a more predictable earnings base as renewable gas production replaces construction-dependent income. We see encouraging potential in this transition, supported by government funding and established industrial customers. The opportunity becomes more compelling as projects enter operation, with Salisbury's first gas production and operating cash generation providing the next measurable milestones.

The verdict: A promising growth phase is taking shape

Delorean has made meaningful progress towards establishing a scalable renewable gas infrastructure business, supported by substantial project funding, long-term customer agreements and advancing construction milestones.

The company's development pipeline offers a credible pathway towards recurring revenue, although financing costs, commissioning requirements and cash flow remain important considerations.

Successful commissioning at Salisbury, followed by construction progress at Horsley Park, could mark a significant turning point in Delorean's commercial development and strengthen its prospects for sustainable long-term profitability.