Delorean (ASX:DEL) wins “preferred tender” status for Yarra Valley Water facility

• Delorean Corporation (DEL) has been awarded preferred tender status for Yarra Valley Water’s second waste-to-energy plant in Victoria
• The preferred tender status paves the way for a formal contract valued at between $40 and $50 million, which is expected to be executed before the end of the year
• DEL’s engineering division will be responsible for the design, construction, operation and maintenance of the plant, which aims to naturally convert organic waste to clean energy
• Ultimately, the Lilydale project will support Yarra Valley Water’s goals of producing 100 per cent of its own energy by 2025 and achieving net zero emissions by 2030
• DEL shares are up 12.2 per cent on the back of this news to trade at 23 cents

Delorean Corporation (DEL) has been awarded preferred tender status for Yarra Valley Water’s second waste-to-energy plant in Lilydale, Victoria.

Delorean’s engineering division will be responsible for the design, construction, operation and maintenance of the plant with an initial two-year contract for the anaerobic digestion facility.

Aligning with Delorean’s bioenergy plants, anaerobic digestion is a natural process that converts organic waste to clean, green energy without the use of incineration.

The new Yarra Valley Lilydale facility will process an average of 150 cubic metres of organic waste per day using anaerobic digestion. It will produce 1.2 megawatts of electricity and supply the adjacent sewage treatment plant with surplus energy exported to the grid.

This planned facility follows the retail water corporation’s food waste-to-energy facility in Wollert, Melbourne, which has been operating since 2017.

Ultimately, the Lilydale project will support Yarra Valley Water’s goals of producing 100 per cent of its own energy by 2025 and achieving net zero emissions by 2030.

The preferred tender status was awarded on the basis of a competitive tender with a total design and construction contract sum of between $40 and $50 million. Once the contract terms are finalised and DEL submits the relevant documents, a contract will be formally executed which is expected before the end of the year.

“The appointment of Delorean Corporation as preferred tenderer for the project represents another major milestone in the company’s rapid expansion and affirms Delorean’s leadership in the bioenergy infrastructure sector in Australia,” Managing Director Joe Oliver said.

Initial build works are expected to begin in the third quarter of 2022 once planning, regulatory and ministerial approvals are received.

DEL shares were up 12.2 per cent on the back of this news to trade at 23 cents at 11:55 am AEDT.