Delorean finalises funding for Sydney renewable gas project
Australian bioenergy company Delorean Corporation has announced that it has reached financial close on its planned $62.1m NSW1 Horsley Park Bioenergy Facility.
The facility will be constructed on Brickworks’ land immediately adjacent to its Horsley Park manufacturing operations. Brickworks Building Products Pty Ltd is Australia’s largest brick manufacturer and a wholly owned subsidiary of Brickworks Limited. Its product range includes well-established brands such as Austral Bricks, Austral Masonry and Bristile Roofing.
The Delorean facility will process source-separated organic waste diverted from landfill and produce mains-grade biomethane, which will be piped directly to Brickworks behind the meter for the manufacture of bricks.
The binding agreements with Brickworks include a lease agreement over the Brickworks-owned project land for 25 years and a gas supply agreement in which Brickworks will offtake all renewable gas produced by the project over the term of the lease.
The project has been partly funded by a NSW Government grant through the NZMI, and $10.5m from the Australian Renewable Energy Agency (ARENA) under its National Industrial Transformation Program.
“Reaching financial close on NSW1 is a major milestone for Delorean and for Australia’s biomethane industry, following on from Delorean’s 100%-owned SA1 Project now approaching commissioning in Adelaide,” said Delorean Managing Director Joe Oliver. “With the support of the NSW Government, ARENA, Westpac, Tanarra, Brickworks and of course our shareholders, we can now build and own critical organic waste processing infrastructure on Sydney’s doorstep, delivering renewable gas to Brickworks for decades.
“The project will deliver diverse long-term contracted and merchant revenues, which will continue to layer up as Delorean continues to close out and construct its development pipeline.”
Delorean said the bioenergy facility will have a processing capacity of 120,000 tonnes per annum of source-separated organic waste, with approval for up to 150,000 tonnes per annum. This will produce approximately 253,000 GJ of renewable gas (biomethane) annually, representing a 50.5% reduction in Scope 1 emissions for the brick kiln through displacing natural gas.
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