Delorean Corporation Ltd (ASX:DEL)’s engineering division has been awarded a contract for the delivery of Yarra Valley Water’s (YVW) second food waste-to-energy plant at Lilydale in Victoria.
YVW is the largest of the three Victorian Government-owned retail water corporations.
Food waste to green energy
The facility converts organic waste to green energy – to power YVW’s neighbouring sewage treatment operations – via natural anaerobic digestion.
YVW is building the facility to help address climate change and the depletion of finite resources like water and energy.
It will use a natural process to turn organic food waste into renewable energy, reducing landfill, cutting greenhouse gas emissions and reducing energy costs, which will also keep downward pressure on water bills for the utility’s customers.
This project has been developed to minimise immediate and long-term impacts on the environment, and the facility will not use a gasifier or incinerator to burn food waste.
The design and operation of the facility ensures it will not cause air or noise pollution, with the new plant anticipated to emit similar sound levels to the existing plant.
Modern technology will also be used to reduce odours and waste will be stored and treated in tanks so that odour can be contained more effectively to meet strict EPA codes for odour management.
First government contract for Delorean
The contract includes the design, build, operation and maintenance of the bioenergy facility. In addition to the design and construction value, the contract includes operations and maintenance, and an option for digestate management, supplied by Delorean for a two-year period to the value of $7.3 million.
This $45 million contract is Delorean’s first government partnership, and its fourth major engineering division 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 New Zealand.
The portfolio consolidates Delorean’s leading position in the Australian bioenergy sector.
Large water utility
Yarra Valley Water serves more than two million people and nearly 60,000 businesses in the northern and eastern suburbs of Melbourne.
The contract was awarded to the company on the basis of a competitive tender with a total design and construction contract sum of $45 million.
Under the terms of the contract, work has commenced on pre-site production and planning.
Subject to completion of planning, regulatory and ministerial approvals the project will proceed with full construction kicking off towards the end of the year.
Powering YVW’s operations; excess to grid
The new YVW Lilydale facility will accept and process an average of 150 cubic metres per day of organic waste using anaerobic digestion.
It will produce 1.25 megawatts of electricity and supply the adjacent sewage treatment plant and the co-located recycled water pump station, with surplus energy exported to the grid.
Consistent with all Delorean Corporation bioenergy plants, there is no incineration used. Anaerobic digestion is a natural process that converts organic waste to clean, green energy.
“Another major milestone”
Delorean managing director Joe Oliver said: “The awarding of this contract to Delorean Corporation represents another major milestone in the company’s rapid expansion and affirms Delorean’s leadership in the bioenergy infrastructure sector in Australia.
“Securing a contract of this size is a great achievement by the Delorean team and affirms our capability to deliver in this growing market.
“Investors and private enterprise have been leading the green energy transition. It is very positive and encouraging to now see governments and large utilities recognising the opportunity to divert millions of tonnes of organic waste from landfill, and to be able to support them on their pathway to decarbonisation.
“Victoria offers a huge opportunity to capture organic waste for the generation of in-demand renewable energy and biofertilizer.
“We look forward to successfully delivering this project for Yarra Valley Water and supporting the growth of the bioenergy across Victoria and on a national level.”