Delorean has eye on renewables future as Brickworks collab progresses
Delorean is pressing ahead with plans to develop commercially viable and sustainably driven bioenergy facilities under its collaboration with Brickworks.
This follows the successful completion of the Concept Stage, which covered desktop planning and environmental assessments for sites in NSW, the completion of architectural drawings, completion of an independent review of the organics waste market within the respective regions and discussions with feedstock suppliers.
The companies are now in the Development Stage of their Master Service Agreement. In this stage Delorean Corporation (ASX:DEL) and Brickworks Building Products (ASX:BKW) will conduct the feasibility study, which will provide both companies with further information on the viability of the projects.
This will in turn inform the decision of whether to move forward into Final Project Development Approval, which will include agreement on commercial terms.
Brickworks has retained Delorean to undertake the feasibility study in respect to the initial anaerobic digestion (AD) plant under a separate agreement.
Under the Development Stage, Delorean will apply for all necessary development applications, consents and regulatory approvals in connection with the development, construction and operation of the AD plant.
This will be supported by other development works, including negotiating and closing out feedstock and offtake agreements for the project.
Delorean noted that with a more supportive Labor Federal government framework for green energy, the reduction of emissions in hard-to-abate industrial sectors will be vital to achieving more ambitious 2030 targets.
Additionally, the global energy crisis and soaring energy costs have increased the urgency of the shift towards renewables.
It added that developing bioenergy projects for Brickworks could provide a sustainability model that can be scaled, thereby significantly contributing to Australia’s moves towards reducing carbon emissions and achieving net zero.
“With the recent change in government providing an increasingly supportive environment for businesses operating in sustainability sectors, Delorean is highly enthused about formally advancing this collaboration and continuing to explore the potential for a national rollout,” Managing Director Joe Oliver said.
“Brickworks typify industrial carbon emitters that are subject to barriers in electrifying their operations but are committed to achieving sustainable operations through other decarbonisation pathways.”
This article was developed in collaboration with Delorean Corporation, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.