Delorean Corporation Ltd (ASX:DEL) Welcomes Regulatory Reforms for Renewable Gas
Regulatory Changes Overview
Significant recent updates to the Australian Standards and National Greenhouse Energy and Reporting (NGER) Scheme deliver major advantages for Delorean’s supply of renewable gas in Australia. The changes formally recognise Delorean’s biomethane as a natural gas equivalent and enable companies to use Renewable Gas Guarantee of Origin (RGGO) certificates for injected biomethane to reduce their Scope 1 emissions.
NGER Scheme Emissions Reporting Reform
Starting 1 July 2025, amendments to the NGER Scheme recognise biomethane and hydrogen as new fuel types under the Measurement Determination, supporting market-based emissions accounting. From the 2025–26 reporting year, companies using RGGO certificates for injected biomethane can reduce their Scope 1 emissions, with first reports due by 31 October 2026. This change unlocks additional certainty and value for Delorean’s renewable gas and RGGO revenue streams, enhancing the commercial viability and marketability of its biomethane and RGGO certificates output.
Updated Standards AS 4564:2025
As of 12 June 2025, AS 4564:2025 expands the standard to include “natural gas equivalents” such as biomethane and hydrogen. The updated standard allows oxygen levels up to 1% mol in low-pressure distribution pipelines, compared to the previous 0.2%, aligning with biomethane properties and reducing upgrade complexity and costs. It also defines contaminant thresholds tailored to biomethane, minimizing the need for excessive purification and enabling cost-effective injections.
Strategic Positioning
Delorean’s SA1 Bioenergy Project in Edinburgh Parks, Adelaide is registered under the GreenPower program and will issue RGGO certificates upon first biomethane delivery. The biogas portfolio is advancing towards full pipeline injection, GreenPower integration, and rapid upscaling aligned with updated standards. These regulatory changes provide long-awaited certainty, reduce investment risk, and support accelerated commercial project rollout. Delorean remains on schedule for key milestones, including pipeline injection agreements, RGGO certificate issuance, offtake agreements, and project funding closure.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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