Delorean Corporation awarded $6m ARENA grant to advance SA1 bioenergy facility
Renewable and bioenergy developer Delorean Corporation (ASX: DEL) has signed a $6 million grant funding agreement with the federal government-backed Australian Renewable Energy Agency (ARENA).
The funding will help fast-track the development of Delorean’s pioneering SA1 bioenergy facility currently under construction in South Australia.
The SA1 facility will process organic waste diverted from landfills, generating renewable gas and biogenic liquid carbon dioxide (LCO₂), supporting the decarbonisation efforts of industrial gas users and offering long-term environmental and financial benefits.
Sector ‘game-changer’
“This significant investment from ARENA is a game-changer for Delorean and the Australian energy sector,” managing director Joe Oliver said.
“It not only enables us to achieve a major milestone with the SA1 project but it also creates long-term sustainable revenue streams that will underwrite the viability of the project.”
“Furthermore, it highlights the bankability of Delorean’s near-term and medium-term development pipeline.”
Mains-grade biomethane
The ARENA grant will support the procurement, installation and commissioning of critical infrastructure upgrades to enhance the facility’s ability to produce and upgrade biogas into mains-grade biomethane.
The Adelaide gas network will supply the renewable gas under long-term offtake deals currently under negotiation.
Importantly, the facility will produce Renewable Gas Guarantee of Origin Certificates (RGGOs), which will be issued under GreenPower’s gas certification scheme.
This further strengthens Delorean’s commitment to environmental sustainability and reinforces the project’s long-term revenue potential.
Critical renewable energy
Mr Oliver said that the facility is positioned to become a critical component of Australia’s renewable energy landscape.
“The SA1 project represents a major step towards decarbonising hard-to-abate industrial sectors by providing renewable energy solutions that directly address Scope 1 emissions,” he said.
“We are proud to be part of Australia’s renewable energy future and to be showcasing the potential of bioenergy infrastructure to drive both environmental and economic outcomes.”
Growing in importance
Bioenergy is a form of renewable energy derived from recently living organic materials known as biomass, which can be used to produce transportation fuels, heat, electricity and products.
ARENA chief executive officer Darren Miller said biomethane could play an important role in industrial decarbonisation but its full potential remains untapped.
“By using food and organic waste and transforming it into renewable gas, Delorean’s project shows an innovative approach to reducing emissions while supporting a circular economy,” he said.