Brickworks Limited (ASX: BKW) and Delorean Corporation Ltd (ASX: DEL) have signed a deal to collaborate on a green project.
Brickworks is Australia’s largest brick supplier and has a diversified portfolio of assets, it has a sizeable stake in Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). It also has industry property assets with joint venture partner Goodman Group (ASX: GMG).
Green collaboration between Brickworks and Delorean
The building product segment of Brickworks has signed a collaboration agreement with Delorean. The partnership plans to develop green synthetic natural gas (GSNG) facilities at Brickworks’ brick plants.
Brickworks said that the first step the partnership will undertake is a feasibility study (and seek development approval) to build and operate the facilities. The initial focus will be on Brickworks’ brick manufacturing sites in NSW.
The plan is to convert food and other bio-waste to biomethane, a renewable GSNG, and electricity. This would be used in Brickworks operations.
Brickworks said that the GSNG is a renewable green gas and will be produced at the same specification as natural gas. This means it will be able to be transported using natural gas pipelines.
Delorean and its role in the project
Delorean is an Australian bioenergy company. It specialises in the design, build, ownership and management of bioenergy infrastructure.
Initially Delorean will undertake services needed to figure out the viability of constructing and operating these energy facilities.
If the feasibility study is successful and passes regulatory approval, Delorean and Brickworks plan to establish a 50/50 joint venture to construct and operate the plants.
Brickworks Managing Director Mr Lindsay Partridge AM said:
“We are excited to be working alongside Delorean, to adapt their market leading anaerobic digestion technology, that will enable the conversion of organic waste to green synthetic natural gas. This gas can be used to fire our kilns in exactly the same way as natural gas, thus maintaining the high quality of our bricks, that we guarantee for 100 years.”
Brickworks green focus
The company expects that the first GSNG facility planned has the potential to displace up to 100,000 gigajoules a year of fossil fuel gas and be replaced with renewable biomethane. As an added bonus the bioenergy facility will use organic waste that would otherwise be destined for landfill or other less efficient recycling.
Management said that they are committed to leading its industry in reducing carbon emissions.
Mr Partridge said “we see a future, not too far away, where our bricks are made from recycled products, and are fired by kilns powered by waste products.”
Final thoughts on the Brickworks share price
This is promising news for any investor who is keen for renewable progress in the big business world. It seems to be getting to the point where companies are not able to ignore their carbon emissions and may be left behind if they aren’t taking action.
The Brickworks share price closed 1.25% down on Friday, however that seems unrelated to this and is more likely to be linked to the WHSP share price dropping.
The company recently released its FY21 results and this gave investors an insight into how the business has been performing.
Brickworks is on my watchlist and if the share price drops further I might consider making a purchase.
