- Delorean Corporation (DEL) wins a contract for Yarra Valley Water’s second food waste to energy plant at Lilydale, Victoria
- The engineering division will design, build, operate and maintain the anaerobic digestion facility for the facility
- The total contract sum comes to $45 million, and includes a two year agreement for operations and maintenance by Delorean at a value of $7.3 million
- Work has commenced on pre-site production and planning, with full construction on site planned for later in the year once all approvals has been received
- DEL shares last traded at 16.5 cents on April 28
Delorean Corporation (DEL) has been awarded a contract for the design, construction, operation and maintenance of Yarra Valley Water’s second food waste to energy plant at Lilydale, Victoria.
The engineering division of Delorean was awarded the contract on the basis of a competitive tender, with a total design and construction contract sum of $45 million. This includes a two-year agreement for operations and maintenance with a value of $7.3 million.
Work has begun on pre-site production and planning, with full construction on site planned for later in the year once regulatory and ministerial approvals have been received.
The project is the first government contract and fourth major construction project for Delorean’s engineering division, representing a major milestone for the company.
“Securing a contract of this size is a great achievement by the Delorean team and affirms our capability to deliver in this growing market,” Managing Director, Joe Oliver said.
The new Yarra Valley Lilydale facility will accept and process an average of 150 cubic metres per day of organic waste using anaerobic digestion, a natural process that converts organic waste to clean, green energy. This aims to reduce landfill, cut greenhouse gas emissions and minimise energy costs.
The facility will produce 1.25 megawatts of electricity and supply the adjacent sewage treatment plant, and the co-located Recycled Water Pump Station, with surplus energy exported to the grid.
The company believes that the project will help address climate change and the depletion of finite resources like water and energy.
The contract follows on from the company’s completion and commissioning of the Jandakot Bioenergy Plant in Western Australia, and the current construction of projects for Blue Lake Milling in South Australia and Ecogas in New Zealand.
DEL shares last traded at 16.5 cents on April 27.