ASX BRIEFS
Welcome to 'ASX BRIEFS,' the definitive podcast for enthusiasts, investors, and professionals keen on staying ahead of the curve in the Australian Stock Exchange (ASX). Hosted by Andrew Musgrave, 'ASX BRIEFS' delves deep into the heart of Australia's financial markets, bringing you insightful conversations with the minds shaping the future of investing down under. Each episode, join Andrew as he interviews a diverse lineup of fund managers, executives, and industry insiders, offering you a unique blend of expert analysis, strategic insights, and the latest trends affecting the ASX. Whether you're a seasoned investor or just starting out, 'ASX BRIEFS' is your go-to source for comprehensive updates and thought-provoking discussions designed to inform, inspire, and empower your investment journey. Tune in to 'ASX BRIEFS' and take the pulse of Australia's financial markets right at your fingertips.
ASX BRIEFS
DELOREAN CORPORATION LTD (DEL) - From Waste to Power: Delorean's Joe Oliver Discusses the Renewable Revolution
Renewable energy and waste transformation converge powerfully in this illuminating conversation with Joe Oliver, Managing Director of Delorean Corporation Limited (ASX:DEL). We explore how this innovative company is revolutionizing Australia's approach to organic waste by converting it into valuable renewable energy through advanced anaerobic digestion technology.
The spotlight shines on Delorean's recent $6 million ARENA grant success, which powerfully validates their business model and accelerates the development of the groundbreaking SA1 facility – Australia's first project injecting biomethane from organic waste into the gas network. Joe reveals the facility's unique dual revenue model that combines renewable gas with food-grade liquid CO2 production, creating diversified cash flow and enhanced returns on capital.
Ready to discover how waste transformation is powering Australia's clean energy revolution? Listen now and see why Delorean Corporation represents one of the most compelling opportunities in the renewable energy sector today. Subscribe to ASX Briefs for more innovative company spotlights and investment insights!
Andrew Musgrave Host
Welcome back to ASX Briefs, your front row seat to conversations with leading ASX listed companies and joining me again is Joe Oliver, the Managing Director of Delorean Corporation Limited, a company firmly positioned at the intersection of renewable energy and waste transformation. Delorean is a national leader in bioenergy infrastructure designing, building and operating renewable energy facilities that process organic waste into clean energy. Joe, thanks for joining me again and welcome back to ASX Briefs.
Joe Oliver Guest
Thanks for the intro, andrew. Yeah, absolutely, Delorean Corporation. We're a leading Australian bioenergy company that's listed on the ASX. We specialise in converting organic waste into renewable energy through anaerobic digestion technology. Our business spans the full project lifecycle, from designing and building bioenergy plants to owning and operating them and retailing the energy we produce. So, we're vertically integrated across engineering, infrastructure development and energy retail, and this enables us to scale up efficiently and retain value across the supply chain. At our core, we're driving the transition to net zero by decarbonizing both energy and waste.
Andrew Musgrave Host
OK, and you've just secured the ARENA grant for just over $6 million, so congratulations on that. So how transformative is this funding for the SA1 facility and Delorean's broader vision?
Joe Oliver Guest
Yeah, thank you Andrew. It’s a huge endorsement from ARENA and the federal government of what we’re building at SA1 and also the broader renewable gas strategy. This funding it de-risks a significant portion of the capex and supports the delivery of Australia's first project injecting biomethane from organic waste into the gas network. And it's transformative not just financially but in the terms of validating Delorean's business model and accelerating our project pipeline nationally.
Andrew Musgrave Host
And the SA1 facility is truly unique in combining renewable gas and LCO2 production. So, can you walk us through how this dual revenue model enhances the project's commercial sustainability?
Joe Oliver Guest
So the SA1, whilst it's the first of its kind in Australia to integrate renewable gas and food grade liquid CO2 production from the organic waste stream, the dual input model creates two high value independent revenue streams, both mains grade biomethane, which is sold into the gas network, as well as liquefied CO2, which is sold under a binding 10 year off take with Supagas. And what that means is that we've got diversified cash flow, we've improved the return on capital, and we've got a more resilient financial model supporting cheaper debt, on top of the other revenue streams such as waste diversion, gate fees, biofertilizer and environmental carbon credits, which also enables us to monetise every aspect of a waste material and its by-products. So a great recognition of what we've been able to achieve on the South Australia 1 project that rolls into our project pipeline as well.
Andrew Musgrave Host
Okay, and the SA1 project will process 70,000 tonnes of organic waste annually. So how significant is this in terms of reducing landfill reliance and supporting a circular economy in South Australia?
Joe Oliver Guest
Whilst SA1 will divert a large volume of organic waste from landfill you know, obviously over 70,000 tonnes, reducing methane emissions and helping South Australia achieve a waste reduction target instead of burying this waste in landfill, we're converting it into valuable low-carbon products such as renewable gas, fertiliser and LCO2, which is essentially closing the loop on the organic waste cycle. So, it's a textbook example of the circle economy in action. Again, a great outcome for the project.
Andrew Musgrave Host
And the company is clearly focused on decarbonising hard-to-abate industrial sectors. So, what sort of interest are you seeing from industrial gas users for biomethane supply?
Joe Oliver Guest
Yeah, so we're seeing a really strong and growing interest in this space, especially from the large industrials that are facing increasing pressure to decarbonize in the hard to abate sector but lack of valuable low emission alternatives. I think we know hydrogen is difficult commercially, but also the changes that are required. And when we contrast that to biomethane, which is a drop in solution of natural gas without the need of retrofitting equipment, it's particularly appealing to sectors like manufacturing, food processing and heavy industry where electrification isn't always practical, or the pathway and the demand is there and we're positioning to meet it. So, a heavy focus in that sort of large industrial sector to support that hard to abate sector, decarbonize.
Andrew Musgrave Host
And the company has vertically integrated capabilities across engineering, infrastructure and energy retail. So how does this structure give you an edge in project execution and market flexibility?
Joe Oliver Guest
Yeah, good question again. Look, vertical integration is a core competitive advantage. It allows us to control quality, timelines and costs across the entire project lifecycle, so from design and build through to operations and energy sales. It also enables us to be nimble in responding quickly to market opportunities or policy changes and we're not reliant on third parties to deliver, which gives us a greater speed to market and higher margin retention.
So, we've built a lot of IP up over the years and we've really focused on deploying our well-known IP into our build-own-operate space that we've transitioned into.
Andrew Musgrave Host
And you've mentioned near and medium-term development pipelines, so can you share more about what's next for Delorean after SA1?
Joe Oliver Guest
Across the business we've got multiple projects and a project pipeline. he SA1 being the first project as the build-own-operate really enables us to transition into that model and highlight all of the byproducts from a revenue perspective that supports lower cost of debt. So, over the past 12 years we've been really focused on how we generate the pipeline, fund the pipeline and then move into delivery and operation. And that's where the focus has been across that, where we've got a real head start with the SA1 project and locking in those revenue streams that surround that facility.
Andrew Musgrave Host
Now just to wrap things up, Joe, with momentum, clearly building what's your message to investors about Delorean's role in Australia's clean energy future?
Joe Oliver Guest
My message is fairly simple. Delorean's building the infrastructure for the next phase of Australia's energy transition. Renewable gas will play a vital role in decarbonising sectors that can't electrify apologies and we're one of the few players in Australia with the proven capability and track record to deliver real operating projects, with SA1 under construction, strong government and commercial support and a national project pipeline. We're entering into a phase of accelerated growth and now's the time to get on board. So, we welcome all new and existing shareholders.
Andrew Musgrave Host
Okay, Joe. Well, it's been great to chat again, to get an update on the company and we look forward to the next update from Delorean in the upcoming months.
Joe Oliver Guest
Thank you, Andrew, really appreciate it.
Andrew Musgrave Host
That concludes this episode of ASX Briefs. Don't forget to subscribe and we look forward to catching you on our next episode.