Delorean's new gas retail licence for Victoria puts green gas front and centre

This represents an exciting milestone and ensures Delorean can further capitalise on the benefits of the Australian Government’s recently announced Bioenergy Roadmap.

Delorean’s Energy Division has secured its first gas retail licence in Victoria, meaning renewable gas generated from Delorean’s Victorian bioenergy project pipeline will now have an additional channel for biomethane offtake agreements.

The licence will provide additional margins for Delorean (ASX:DEL) through retail sale of renewable gas directly to consumers while gas licences with other states remain pending.

DEL says biomethane is already cost competitive with fossil fuel natural gas and is significantly less expensive than renewable hydrogen (in the short and medium term).

Delorean Corporation — Green gas – comparative costs. Pic: Supplied

“This is reaffirmed by the governments Bioenergy Roadmap and provides further support for Delorean’s green gas focus and energy retail strategy,” the company said.

The recently released Australian Government Bioenergy Roadmap models that by 2030, 23% of pipeline gas generation could come from bioenergy infrastructure.

Importantly, the existing National gas network is already compatible with biomethane – based on this modelling Australia’s bioenergy sector could contribute to around $10 billion in extra GDP per annum.

Enquires exceed pipeline production capacity

During 2021, Delorean received commitment and enquiries for biomethane that already exceeds its pipeline production capacity.

Securing a gas licence provides additional access to this substantial market opportunity.

It also highlights the immediate demand that Delorean is experiencing from industrial gas users, and the importance of Delorean’s strategic alliance with Australian Gas Infrastructure Group to accelerate this green gas opportunity.

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.