Financial Close reached on $62.1M NSW1 Horsley Park Bioenergy Facility
Delorean Corporation has reached Financial Close on the 100% owned $62.1M NSW1 Horsley Park Bioenergy Facility, co-located with Brickworks’ operations in Horsley Park, New South Wales. The Board’s confirmation follows the Final Investment Decision announced on 8 April 2026.
That Final Investment Decision also set a six-month window to secure the remaining debt and equity, and it projected more than $13M in annual revenue over the facility’s minimum 25-year life from gate fees, gas sales, ACCUs and potential fertiliser sales.
Procurement can now start immediately, with the source giving November 2026 as the commencement month. Construction is expected to commence on site in early 2027 (Q1 CY2027).
The 25-year renewable gas supply agreement with Building Products Pty Limited, the lease with The Austral Brick Co Pty Ltd (both wholly owned subsidiaries of Brickworks Limited) and the $30.5M of grants are now active. Firm commitments of $1.4M have also been received for a private placement. The project moves from approved to funded and contracted.
Financial Close followed these steps:
- Execution of the Westpac $20M debt facility document
- Confirmation of a new Tanarra facility
- Satisfaction of a financial close condition precedent to the grants, the gas supply agreement and the lease agreement
Managing Director Joe Oliver described the milestone in the company’s announcement:
Joe Oliver, Managing Director
“Reaching Financial Close on NSW1 is a major milestone for Delorean and for Australia’s biomethane industry… we can now build and own critical organic waste processing infrastructure on Sydney’s doorstep, delivering renewable gas to Brickworks for decades. The project will deliver diverse long term contracted and merchant revenues…”
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How the $62.1M project cost is funded
Grants cover $30.5M of the gross project cost. Both grant agreements are active: $20M from the NSW Government through the Net Zero Manufacturing Initiative (NZMI), and $10.5M from the Australian Renewable Energy Agency (ARENA) under its National Industrial Transformation Program.
| Source | Amount |
|---|---|
| NSW Government – Net Zero Manufacturing Initiative (NZMI) grant | $20.0M |
| ARENA – National Industrial Transformation Program grant | $10.5M |
| Westpac trade finance facility | $20.0M |
| Delorean project capital costs funded to date | $1.6M |
| Tanarra Facility D / R&D Tax refunds / future DEL cash on hand | $8.7M |
| Delorean November 2026 equity placement | $1.3M |
| Total | $62.1M |
Westpac trade finance facility
Further to the announcement of 13 October 2026, subsidiary Horsley Park Bioenergy Pty Ltd has executed a $20M trade finance facility from Westpac Banking Corporation. Key terms are:
- The facility is to fund equipment costs for the project
- Line fee of 1.00% of the facility limit
- Interest rate of BBSY + 2.5%
- Westpac will hold a senior security in Horsley Park Bioenergy Pty Ltd
- The company intends to roll the facility into a longer term follow-on project debt facility on commissioning of the project
Tanarra Facility D
Delorean has entered into a binding term sheet with Tanarra Restructuring Partners Pty Ltd, as manager of the Tanarra Australian Recovery Fund, for a new loan facility of up to $10M to fund NSW1 project costs. Facility D remains subject to execution of full legal documentation.
Key terms are:
- Availability: up to five tranches of $2M, the first available from 31 December 2026 and the last from 31 December 2027, each with a 90-day availability period. Delorean is not obliged to draw any tranche.
- Maturity: 13 September 2028.
- Security: Tanarra’s existing security over the assets of Delorean and its subsidiaries, which may be subordinated to project or asset financiers. Tanarra will have a second ranking security interest in the NSW1 project company.
- Interest: cash interest of BBSY plus 8.00% pa (BBSY floor of 4.00% pa) and PIK interest of 5.00%. An additional 5.00% of the cash interest can be capitalised in the first 12 months.
- Commitment fee: 3.25% pa, paid quarterly, on undrawn and unexpired tranches.
- Fees: no make whole or break fees.
Tanarra will be issued unlisted equity call options over the equity in the NSW1 project company, at a zero exercise price. They are issued progressively if each applicable tranche is drawn (8%, 6%, 5%, 3% and 3% respectively). Delorean’s 100% ownership of NSW1 is subject to these options.
What NSW1 will deliver for Delorean and Brickworks
NSW1 will be built on Brickworks’ land immediately adjacent to its Horsley Park manufacturing operations. The facility will process source-separated organic waste diverted from landfill and produce mains-grade biomethane, which will be piped directly to Brickworks behind the meter for the manufacture of bricks.
Biomethane is a renewable gas, and “behind the meter” means the gas goes straight to the customer’s site. The 25-year agreements tie that gas to a single contracted customer.
Project summary:
- 120,000 tpa of organic waste processing capacity (approved up to 150,000 tpa)
- Approximately 253,000 GJ per annum of renewable gas
- Reduces the brick plant’s natural gas use by around 50% and Scope 1 emissions by approximately 38%
- Minimum project life of 25 years
- Development approval granted July 2025
Under the Lease Agreement, Delorean leases the Brickworks-owned project land for 25 years, with a rent-free period during construction. Under the Gas Supply Agreement, Brickworks will offtake all renewable gas produced by the project over the term of the lease, up to agreed commercial-in-confidence maximum quantities. Brickworks is also entitled to purchase ACCUs and Renewable Fuel Certificates from the project.
Oliver linked NSW1 to Delorean’s 100%-owned SA1 Project, now approaching commissioning in Adelaide. He said the revenues will “…continue to layer up as Delorean continues to close out and construct its development pipeline.”
Procurement starts as new shares list
Delorean has received firm commitments to raise $1.4M through a private placement of 20,895,523 shares at $0.067 per share. The price is a 15% discount to the last closing price on 4 November 2026 and a 22% discount to the 15-day Volume Weighted Average Price (VWAP).
The placement was supported by new and existing institutional and sophisticated investors, with PAC Partners Securities Pty Ltd acting as Lead Manager and Bookrunner. Funds will be used for the NSW1 project, working capital and the costs of the offer, and the funding table shows $1.3M directed towards the project.
New shares will be issued under Delorean’s existing capacity under Listing Rule 7.1A and will rank pari passu with existing ordinary shares from the date of issue.
Upcoming events stated in the announcement:
- Allotment of the placement shares and start of trading of the new shares on the ASX: expected Tuesday, 17 November 2026.
- Procurement commencement in November 2026, with Delorean Engineering to commence procurement and mobilise to site.
- Delorean to work to execute full legal documentation for Tanarra Facility D.
- Tanarra Facility D first tranche available from 31 December 2026, with the last from 31 December 2027.
- Construction commencement: Q1 CY2027.
- Tanarra Facility D maturity: 13 September 2028.
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