Delorean takes control of SA gas project

Perth-based Delorean Corporation has struck an agreement with Clean Peak Energy to acquire its 70 per cent stake in the Salisbury Bioenergy project.

Delorean, which previously held a 30 per cent stake in the project via its Delorean Energy SA One subsidiary, will pay $2.1 million in cash for the remaining interest.

The Salisbury Bioenergy project will process commercial and organic food and agricultural waste into 150 terajoules of biomethane each year, to be distributed through Adelaide’s gas network under an offtake agreement with Origin Energy.

Recently listed Delorean expects the project will be the first in Australia to receive the ‘green gas to mains’ milestone.

Managing director and Business News 40under40 Awards winner Joe Oliver said renewable gas was key in decarbonising the gas network.

“[W]e are pleased to be pioneering this with a project at commercial scale in Australia,” he said.

Delorean plans to fund the project's expected $25.3 million development cost using existing cash reserves, debt facilities, and government-funded concessional loans and grants.

Construction on stage one of the project, which involves 60,000 tonnes of waste per annum, is expected to begin before September this year, subject to a final investment decision.

Shares in Delorean closed up 2 per cent on Monday to trade at 23 cents.