Delorean Corporation: Westpac $20M non-binding financing agreement backs NSW1 Horsley Park
Delorean Corporation (ASX: DEL) has entered into a non-binding agreement and mandate with Westpac Banking Corporation for $20 million of project financing for the NSW1 Horsley Park Bioenergy Project, through its project Special Purpose Vehicle (SPV), Horsley Park Bioenergy Pty Ltd.
The proposed Westpac asset finance and trade facilities would fund the acquisition of capital plant and equipment for NSW1, once detailed final binding documents are signed. Documentation is expected within the coming weeks.
The agreement is non-binding and remains subject to the completion of detailed financing documentation. The company describes it as establishing a relationship with a second Big Four Australian bank.
Delorean also stated the proposed financing is on more favourable terms than the existing financing for the nearly complete SA1 Salisbury Bioenergy Project, reflecting the maturation of its Build-Own-Operate project platform.
Joe Oliver, Managing Director
“The agreement with Westpac demonstrates confidence in the strength of our project fundamentals, our long-term partnerships with Tier 1 customers, and our ability to deliver scalable commercial renewable gas infrastructure in Australia…”
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How $50.5M of the $62.1M project cost is lined up
Together, the Westpac financing (once binding documents are signed) and the signed government grants represent $50.5 million, or approximately 81%, of the project’s estimated $62.1 million capital cost.
| Source | Amount | Status |
|---|---|---|
| Westpac financing | $20.0M | Non-binding, pending binding documents |
| NSW Government Net Zero Manufacturing Initiative (NZMI) | $20.0M | Signed |
| ARENA (National Industrial Transformation Program) | $10.5M | Signed (announced to the ASX on 8 April 2026) |
| Remaining funding | $11.6M | Expected from working capital, R&D tax refunds, equity and debt |
Financial close remains subject to finalising the Westpac facilities and securing the remaining $11.6 million. The funding path is therefore not yet fully secured.
Key milestones outlined in the announcement:
- Development approval (DA) granted in July 2025.
- Financial close timeframe agreed with Brickworks as 18 November 2026, extended to allow time to finalise the Westpac facilities and remaining funding arrangements.
- Construction anticipated to commence in December 2026, subject to financial close.
- Commissioning in 2028, based on an estimated 21-month construction time.
What is behind-the-meter renewable gas? Why NSW1 matters
Behind-the-meter biomethane explained
Biomethane is renewable natural gas produced from organic waste. At NSW1, source-separated organic waste diverted from landfill would be processed into mains-grade biomethane and piped directly to Brickworks behind the meter, meaning straight to the customer’s site.
Why it matters for investors
The project is built around Delorean’s Build-Own-Operate model, with the company owning and operating the facility. It also ties into the decarbonisation of hard-to-abate industries, which Delorean cites as a role for renewable gas.
Oliver said that, subject to financial close, NSW1 “will become Australia’s first industrial-scale bioenergy project to deliver renewable gas directly behind the meter for industrial manufacturing…” This is management’s claim, not an independently verified ranking.
NSW1 project snapshot and revenue streams
Key project facts from the announcement:
- 100% owned and operated by Delorean under a 25-year lease, on Brickworks’ land adjacent to its Horsley Park brick manufacturing operations in Western Sydney.
- Biomethane offtake to Brickworks from first gas through to the end of the lease.
- Proposed processing capacity of 120,000 tonnes per annum of source-separated organic waste, with approval to process up to 150,000 tonnes per annum.
- Expected production of approximately 253,000 GJ of renewable gas annually.
- Natural gas usage in the co-located brick plant cut by around 50%, equating to a 38% reduction in Brickworks’ overall Scope 1 emissions at the site.
- Initial revenues from organic waste acceptance, and first gas, within approximately 20 months.
The project is expected to generate multiple revenue streams, including Gate Fees, Renewable Natural Gas and Carbon Credits (ACCUs). Delorean also sees potential to capture further revenue from NSW Renewable Fuel Certificates and Liquid Fertiliser.
The announcement does not disclose revenue figures for any of these streams.
Investors weighing the undisclosed revenue streams at NSW1 can look at our full explainer on SA1 revenue streams and GreenPower certification, which covers how RGGO certificates add to gate fees, gas sales and carbon credits at Delorean’s first plant.
What investors should watch next
The announcement points to a funding path covering approximately 81% of capital cost, multiple expected revenue streams, a long-term biomethane offtake with Brickworks, and a growing project portfolio that includes the nearly complete SA1 project.
SA1 Salisbury construction progress is the reference point for NSW1, since the nearly complete Adelaide plant is the template Delorean intends to replicate across its Build-Own-Operate pipeline.
Key items to watch:
- Signing of binding Westpac documents.
- Securing the remaining $11.6 million.
- Financial close by 18 November 2026.
- Construction commencement, targeted for December 2026.
Each of these milestones remains conditional: construction is subject to financial close, and financial close is subject to finalising both the Westpac facilities and the balance of project funding.
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