Leading Australian bioenergy company Delorean Corporation (ASX: DEL) has entered into a landmark collaboration agreement for the distribution of renewable energy through with ATCO Gas Australia’s major network.
Under the terms of the Memorandum of Understanding (MoU), which is presently non-binding, ATCO will facilitate the integration and connection of selected Delorean bioenergy infrastructure projects into ATCO’s Gas Distribution System (GDS). This will enable the supply of biomethane to ATCO from these facilities, helping fulfil ATCO’s regulatory commitment to purchase gas to make up for its system losses.
ATCO has an ongoing need to purchase gas to replace system losses in the GDS, known as Unaccounted For Gas (UAFG). In line with ATCO’s sustainability objectives, ATCO seeks to purchase renewable gas, substituting natural gas for its UAFG requirements.
More widely under the MoU, Delorean and ATCO aim to explore additional opportunities pertaining to the production, injection into the GDS, and supply of biomethane to other customers on the network. The MOU is initially for a period of 12 months with opportunities to extend as required. The planned supply period is for an initial 10 years or more. Any binding agreement will be subject to due diligence. This MOU with ATCO is Delorean’s second collaboration agreement to enable fast-tracking of biomethane into Australia’s gas network.
ATCO Australia is part of the ATCO Group of Companies (ATCO) with diverse products and services across many industries. ATCO Gas Australia owns and operates Western Australia’s largest reticulated gas network and has operations across Australia.
“Delorean Corporation is one of only a small number of true renewable energy stocks on the ASX, with a focus on bioenergy and commercial production of mains-grade renewable natural gas in the form of biomethane,” DEL’s Managing Director Joe Oliver said.
“DEL is uniquely positioned to service Australia’s immediate and rapidly-growing demand for renewable gas.
“We look forward to a successful collaboration with ATCO, which builds upon our established relationship with the company. We expect we will see DEL’s biomethane injected into ATCO’s gas networks across Australia, delivering significant sustainability benefits for both ATCO and Australia’s industrial gas users.”
