Delorean Corporation announced that the Company has entered into a collaboration agreement with Brickworks. Delorean and Brickworks have agreed to undertake an initial feasibility study of and to seek development approval to develop, construct and operate anaerobic digestion (AD) plant(s) converting organic waste to renewable gas and electricity for use in Brickworks Building Products' NSW plants. Under the MSA, Delorean will undertake services for payment by Brickworks at market rates to enable the parties to assess the viability of the project including planning and development approval, detailed plant design, feedstock supply arrangements, digestive offtake, energy offtake and community consultation.

Delorean and Brickworks have agreed to a staged approach for the project, commencing with further due diligence and the feasibility study. Once complete, and if the project is considered viable, and the parties determine to proceed then the parties agree to negotiate in good faith the terms of various agreements including for the funding, construction and operating phase of the anaerobic digestion plant(s). The parties may enter into a 50/50 Joint Venture (or other commercial arrangement) to deliver the project, which shall include a Design and Construction Agreement with Delorean Energy Pty Ltd. (a 100% subsidiary of Delorean Corporation Limited) to construct the facility.

Any such arrangement is subject to Board approval by each party and binding legal documentation being executed by the parties. Should the initial plant(s) proceed to successful construction and operation Delorean and Brickworks will consider similar projects at other Brickworks locations across Australia. The initial plant is expected to displace up to 100,000 GJ per annum of fossil fuel gas with renewable biomethane.

In addition, the bioenergy will be derived from commercial, industrial and municipal organic waste that would otherwise be destined for landfill, or less productive pathways for recycling.