Transcription of The Stock Network Interview with Delorean Corporation (ASX:DEL), Managing Director and Co-Founder Joe Oliver
Lel Smits: DeLorean Corporation is a bioenergy infrastructure developer advancing a national portfolio of renewable gas and electricity projects and is now transforming from an engineering contractor into an asset owner and operator. Construction is underway at its first build-own-operate project in South Australia supported by a $37 million corporate finance package and $6.1 million arena grant, the focus on capitalising on the national drive towards zero organic waste to landfill and industrial decarbonisation. DeLorean Corporation’s Managing Director and Co-Founder Joe Oliver joins me to discuss DeLorean’s infrastructure pivot and growth opportunity in Australia’s bioenergy market.
Joe, welcome to the Stock Network.
Joe Oliver: Thank you, it’s great to be here and really appreciate your time.
Lel Smits: Pleasure. Now, DeLorean has announced a major pivot from EPC contract to build-own-operate infrastructure owner. How is this strategy reshaping the company’s growth profile and also long-term revenue model?
Joe Oliver: It’s a great question. Look, our strategic shift from an EPC contractor to a build-own-operator in the infrastructure space marks the most significant transformation in DeLorean’s history.
We’re now moving from being purely a project delivery business in an asset-backed infrastructure company, building-own-operating renewable gas and electricity assets that generate long-term reoccurring revenue nationally. So, this evolution, if you like, has fundamentally changed our growth profile. Rather than one-off project margins, we’re creating a portfolio of operating bioenergy assets that deliver steady cash flows, strong returns, a long-term value for shareholders locked in with creditworthy counterparts.
So, it allows us to retain more upside from the projects we develop, effectively internalizing the engineering capability that built on track record and now applying it into the infrastructure will land for decades. I think what we’re seeing in Australia is there’s a move towards a net zero emissions and a zero organic waste to landfill, which creates a generational investment opportunity, and DeLorean is strategically positioned to capitalize on that transition.
Lel Smits: Excellent and with construction underway on the SA1 project and a national build-own-operate pipeline worth around $200 million, what are the key milestones and expected outcomes for investors?
Joe Oliver: Again, so the South Australian One project is the start of the transition for us. It’s our first build-own-operate project and it’s a cornerstone for our new model. So, the project is backed by a $37 million corporate finance package with a $6.1 million arena grant with a recent announcement of the NAB, which is supporting the project SPV to free up the corporate debt for the project pipeline.
So, it demonstrates strong government and financial market confidence in what we’re doing. On the project, construction is well advanced. The commissioning will mark a key milestone.
We’re aiming to have everything structurally built by the end of this calendar year and then first gas into the end of this financial year, so around that April, May timeframe. So, with the renewable gas sector more broadly, once operational, SA1 will divert tens of thousands of tons of organic waste from landfill each and every year and produce renewable gas and liquefied CO2 that directly displace fossil fuel. So, it’ll be a major milestone for the country, for the company and for the sector that we’re working in.
Beyond SA1, we’ve got a national build-own-operate pipeline that we’re heavily focused on delivering under this 200 mil active development, which includes projects in New South Wales, Victoria, and over the next 12 to 24 months, we expect to see multiple projects reach investment decision and move into construction, positioning DeLorean as one of the leading integrated bioenergy infrastructure developers and operators in the country. And Joe, with strong tier one partnerships, arena funding, and multiple ESG certifications, how is DeLorean positioning itself as a leading player in Australia’s renewable gas and circular economy transition? Yeah, so partnerships are central to how we operate and our collaboration with arena, leading energy retailers, technology providers, and corporate offtakers underpins both the technical and commercial success of the projects. And it also creates the blueprint for our project pipeline.
We’ve also been deliberate in embedding the ESG strategy into our projects. And DeLorean is one of the only few ASX listed companies in our sector to hold multiple ESG and sustainability certifications. So, that’s given our investors, customers and partners confidence that we’re building infrastructure that genuinely contributes to decarbonisation, energy transition and the circle economy.
I think, you know, just furthermore, you know, projects are a direct example to that circle economy in action. You know, we’re effectively processing organic waste for energy, and we’ve got multiple revenue streams that underpin that cash flow, that annuity based energy transition to support the growth of the business. And, you know, we’ll start to see, you know, Australia moving to ban organics going into landfill.
And the focus with further partnerships to help, you know, large industrials decarbonise in the heart of eight sector, which we see enormous growth potential in our model and a clear pathway to scale in it nationally.
Lel Smits: Jo, thank you so much for the update on DeLorean Corporation, certainly a very large transformation underway and looking forward to seeing those developments as they come through.
Joe Oliver: Yes, thank you. I really appreciate your interest and everyone’s time. Thank you.
Ends