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Delorean Corporation (ASX:DEL) will be adding a new fuel source to the Australian network with the company’s board reaching a positive final investment decision (FID) for its Horsley Park bioenergy project in New South Wales.
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The go-ahead is subject to sourcing $31.6 million to progress the landmark $62.1M project co-developed with Brickworks Building Products, a wholly owned subsidiary of Washington H. Soul Pattinson and Company (ASX:SOL).
The project will be 100% owned and operated by Delorean, located on Brickworks’ land under a 25-year lease agreement with an offtake for biomethane to Brickworks from first gas through to the end of the lease.
To date, the project has secured $20M from the NSW government through its Net Zero Manufacturing Initiative (NZMI) grants program and $10.5M from the Australian Renewable Energy Agency (ARENA) under the federal government’s National Industrial Transformation Program.
Delorean managing director Joe Oliver said the remaining $31.6M required for the project construction is intended to be funded by Delorean sources.
“Delorean’s 100%-owned NSW1 facility co-located with Brickworks operations in Horsley Park is a transformational milestone for the company and an industry-changing milestone for Australia,” Mr Oliver explained.
He continued: “With the significant grant support of ARENA and NSW Government, Delorean will now build critical organic waste processing infrastructure on Sydney’s doorstep, supporting Brickworks’ brick manufacturing for the New South Wales housing market for decades to come.”
Bickworks CEO, Mark Ellenor, said the NSW facility will process organic waste diverted from landfills, generating renewable gas for offtake by Brickworks for the manufacture of bricks, reducing the site’s overall Scope 1 emissions by ~38%.
“Reliable and affordable gas remains critical to Australian manufacturing, and biomethane projects like this provide an important pathway to diversify energy supply and support industry,” Mr Ellenor said.
“We welcome the support of the federal and NSW Governments for this initiative. This project will reduce Brickworks’ Scope 1 emissions at the site by nearly 38% while also diverting significant volumes of organic waste away from landfill. The initiative will introduce low-carbon bricks to the NSW housing market.”
DEL is up +15% to 11.5¢ through Wednesday. Mkt cap $22.02M.
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