DEL 0.00% 4.0¢ delorean corporation limited

Ann: Share Purchase Plan Raises $1.63m, page-13

  1. 226 Posts.
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    BlueLake is a world first. There have been delays due optimising the plant due to its unique feed stock. You can read about it from Blue Lakes view here: https://reneweconomy.com.au/renewable-oats-south-australia-millers-world-first-bioenergy-plan/

    The important part being:

    To gain a deeper understanding of how to operate a biogas plant, Neale spent two weeks at a workshop in Germany, home to more than 15,000 such facilities.He said Blue Lake Milling’s ambitious plan was met with scepticism.“They all told us we were crazy,” Neale said. “There’s existing plants with oat husks being fed in but none with it as a straight diet. “So it was obviously a bit of a risk.”

    So these delays should not really be expected on other builds. They currently have ~$600k set aside for damages due to the delays but have said they don't expect to pay this due to Blue Lake being aware of the difficulties of the project. I've said previously that it seems like a mistake that they didn't account for this properly in the original contract, but it is what it is. Fingers cross Blue Lake is reasonable. I believe they are interested in exploring further projects in future so you would think it would be silly to punish DEL and burn bridges.

    Commissioning is now expected this quarter so its likely to be the next big announcement. Getting that $600K back in the positive column would be a nice little boost. From DELs own words "Ramping up after delayed completion and biology commissioning"
 
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