- Delorean enters into a non-binding agreement with Westpac to support construction of NSW1 Horsley Park bioenergy project
- The proposed Westpac asset finance will be used towards funding the acquisition of capital plant and equipment
- Proposed financing on more favourable terms than the existing project financing for Salisbury Bioenergy project
- NSW1 will be 100% owned and operated by Delorean under a 25-year lease agreement
Delorean Corporation (ASX: DEL) has entered into a non-binding agreement with Westpac for project financing of $20 million to fund capital plant and equipment for its NSW1 Horsley Park Bioenergy Project in Western Sydney.
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MD, Joe Oliver, said this non-binding funding agreement and mandate represents a major milestone in Delorean’s infrastructure strategy, establishing a relationship with a second Big Four Australian bank.
Mr Oliver said importantly, the proposed Westpac financing is on more favourable terms than the existing financing in place for the nearly complete SA1 project, reflecting the continued maturation of Delorean’s build-own-operate project platform and its growing track record in developing and financing commercial-scale bioenergy infrastructure.
The proposed loan facility will support the acquisition of capital plant and equipment for NSW1. The Westpac agreement and mandate is non-binding and remains subject to the completion of detailed financing documentation which is expected within the coming weeks.
Together with the $20 million Westpac financing once detailed binding documentation is signed and $30.5 million in signed government grant, these funding sources represent $50.5 million, or approximately 81%, of the project’s estimated $62.1 million capital cost.
Delorean and Brickworks have agreed to extend the financial close timeframe for the project to 18 November 2026, allowing additional time to finalise and sign the Westpac asset finance and trade facilities and secure the remaining funding arrangements. Construction of NSW1 remains subject to financial close and is currently targeted to commence in December 2026.
“Entering into a financing agreement and mandate with one of Australia’s leading banks, Westpac, for the NSW1 Horsley Park Bioenergy Project marks another significant milestone in Delorean’s journey to establish renewable gas as a key component of Australia’s future energy mix, following the successful financing of our SA1 Salisbury Bioenergy Project.
“The agreement with Westpac demonstrates confidence in the strength of our project fundamentals, our long-term partnerships with Tier 1 customers, and our ability to deliver scalable commercial renewable gas infrastructure in Australia,” Mr Oliver said.
“Subject to financial close, the NSW1 Horsley Park Bioenergy will become Australia’s first industrial-scale bioenergy project to deliver renewable gas directly behind the meter for industrial manufacturing, demonstrating the critical role renewable gas can play in decarbonising Australia’s hard-to- abate industries.”
NSW1 is proposed to have a processing capacity of 120,000 tonnes per annum of source-separated organic waste, with approval to process up to 150,000 tonnes per annum.
DEL was up 5.26% to 8.0¢. Mkt cap $19.22M.
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