The analysis above is so valuable and corroborated the level of profitability that can be driven with such diverse income streams.
I was reading a peer reviewed journal which pertains to assessing the viability of biomethane production (it is a study based in rural new south wales in Griffith). It summarises that the two most vital aspects of a viable biomethane production facility are:
The utilisation rate of the facility (i.e. can Delorean consistently process 70,000 T/p.a. at SA1)
The biomass fee (feedstock price, "which can vary from receiving a gate fee of A$40/T to paying A$50/T based on locational and market factors")
Whilst this seems self explanatory, and I have no doubt Delorean are not intending to pay for any biomass, it left me wanting to understand the company's plans around sourcing the biomass consistently and reliably. Are they planning on sign contracts with major feedstock producers (sourcing all feedstock from more isolated providers over a long period) or will this be a more dispersed structure where the biomass will be sourced from hundreds of different producers? Also, would the expectation be that the feedstock is dropped at the SA1 plant or collected?
The paper I refer to is called "Impact of Co-digestion and degree of centralisation on the yield and viability of biomethane production: A case study in Regional Australia". It may have been referenced before, I'm not sure!
DEL Price at posting:
15.5¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)