Delorean Corporation Ltd awarded a US$45 million contract for the development of Yarra Valley Water’s green energy project

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The engineering division of Delorean Corporation Ltd (ASX:DEL) has been awarded a contract to supply Yarra Valley Water’s (YVW) second food waste energy recovery plant at Lilydale in Victoria.

YVW is the largest of the three water companies owned by the Victorian Government.

Food waste to green energy

The plant converts organic waste into green energy through natural anaerobic digestion – to power neighboring YVW wastewater treatment plants.

YVW is building the facility to combat climate change and the depletion of finite resources such as water and energy.

It will use a natural process to turn organic food waste into renewable energy, reducing landfill, lowering greenhouse gas emissions and lowering energy bills, which will also keep pressure on water bills for the utility’s customers.

This project is designed to minimize immediate and long-term environmental impacts and the facility will not use a gasifier or incinerator to burn food waste.

The design and operation of the facility will ensure no air or noise pollution, with the new facility expected to emit noise levels similar to the existing facility.

Modern technology is also used to reduce odors, and waste is stored and treated in tanks so odors can be more effectively contained to meet strict EPA odor management codes.

First government contract for Delorean

The contract covers planning, construction, operation and maintenance of the bioenergy plant. In addition to design and construction value, the contract includes operation and maintenance and an option for digestate management to be supplied by Delorean over a two-year period valued at US$7.3 million.

This $45 million contract is Delorean’s first government partnership and the Engineering Division’s fourth major construction project following the successful completion and commissioning of the Jandakot bioenergy plant in Western Australia and the current construction of projects for Blue Lake Milling in South Australia and Ecogas in Australia New Zealand .

The portfolio solidifies Delorean’s leading position in Australia’s bioenergy sector.

Big water company

Yarra Valley Water serves more than two million people and nearly 60,000 businesses in Melbourne’s north and east suburbs.

The contract was awarded to the company on the basis of a competitive bid for a total of US$45 million for design and construction.

According to the terms of the contract, on-site production and planning has started.

Pending completion of planning, regulatory and ministerial approvals, the project will proceed with full construction beginning later this year.

supporting YVW’s operations; excess to the grid

The new YVW facility in Lilydale will receive and process an average of 150 cubic meters of organic waste per day using anaerobic digestion.

It will produce 1.25 megawatts of electricity and feed the neighboring wastewater treatment plant and pumping station for recycled water there, with excess energy being fed into the grid.

As with all Delorean Corporation bioenergy plants, no combustion is used. Anaerobic digestion is a natural process that converts organic waste into clean, green energy.

“Another important milestone”

Joe Oliver, Managing Director of Delorean, said: “The award of this contract to Delorean Corporation represents another important milestone in the company’s rapid expansion and confirms Delorean’s leadership in bioenergy infrastructure in Australia.

“Securing an order of this size is a tremendous achievement by the Delorean team and validates our ability to deliver in this growing market.

“Investors and private companies have led the green energy transition. It is very positive and encouraging to see that governments and major energy companies are now recognizing the opportunity to divert millions of tons of organic waste from landfills and help them on their journey to decarbonization.

“Victoria offers a great opportunity to harvest organic waste for the production of in-demand renewable energy and bio-fertilizer.

“We look forward to successfully completing this project for Yarra Valley Water and supporting bioenergy growth across Victoria and on a national scale.”

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