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IP Group Australia and The Clean Energy Finance Corporation (CEFC) have launched the Climate Catalyst Fund to support Australian companies developing technology to decarbonise hard to abate industries. 

First close has been reached with IP Group Australia contributing $30 million and the CEFC $20 million as cornerstone investors. Fundraising is underway to welcome new investors.

IP Group Australia is one of the most active venture capital investors in Australian climate tech and has deep experience in supporting climate tech companies from inception to maturity. Its investees include companies such as Hysata, developing the world’s most efficient hydrogen electrolyser; Electralith, an innovator in lithium extraction and refining; Optigrid, an asset optimisation platform for grid-scale batteries; and Banksia Minerals Processing, which is developing a novel process for refining copper from challenging ores.

IP Group Australia’s investment model has been refined over 25 years of working with leading deep technology companies across the UK, US and Australia, enabling the team to bring unique global insights and networks to support companies as they scale.

The IP Group Climate Catalyst Fund will maintain this focus and target Seed and Series A investments in areas including industrial processes (cement, steel and chemicals); mineral processing and supply chain; heavy transport (aviation, shipping and freight); energy-efficient AI and data centres; agriculture and land use; and dispatchable energy and grid balancing.

“The global race to decarbonise is driving unprecedented demand for breakthrough technologies, and achieving material emissions reductions will require the largest reallocation of capital in modern history, creating a generational investment opportunity,” said IP Group Australia CIO Alistair McCreadie.

“While renewable energy has led the charge, the hard-to-abate sectors (accounting for over 30% of global greenhouse gas emissions) represent the next frontier. These sectors demand transformative innovation, not incremental change.”

Malcolm Thornton, CEFC Head of Growth Capital, said the Climate Catalyst Fund is purpose-built to seize this moment.

“This is a strategic relationship between IP Group Australia and the CEFC that is targeting a USD30 -50 trillion global decarbonisation opportunity by investing in Australian-emerging climate technologies,” Malcolm said.

“Mobilising private capital directed at decarbonising industry is a huge part of what the CEFC is trying to achieve.

“This Fund will make landmark investments in technologies with the potential to meaningfully contribute to emissions reduction targets, reshape industries and in the long run deliver material positive impact in Australia and Globally.”

About IP Group

IP Group develops world-changing science and technology businesses across life sciences, technology and cleantech. IP Group is listed on the Main Market of the London Stock Exchange under the code IPO. Since launching in Australia in 2017, IP Group has committed more than A$200m in venture capital, creating 20 companies spun-out from the tertiary sector in Australia and New Zealand that are now collectively valued at more than A$900M. Its portfolio includes groundbreaking companies like Hysata’s efficient hydrogen electrolyser technology, AMSL Aero's development of electric aircraft and ElectraLith’s sustainable lithium extraction membrane technology. IP Group Australia manages A$435m for superannuation fund Hostplus. http://www.ipgroupanz.com

About the CEFC

The CEFC is Australia’s specialist climate investor, helping cut emissions in the race towards net zero by 2050. We invest in the latest technologies to generate, store, manage and transmit clean energy. Our discounted asset finance programs help put more Australians on the path to sustainability, in their homes and on the road. CEFC capital is also backing the net zero transformation of our natural capital, infrastructure, property and resources sectors, while providing critical capital for the emerging climate tech businesses of tomorrow. With access to more than $33 billion from the Australian Government, the CEFC invests with commercial rigour and is governed by an independent board.

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