IP Group Climate Catalyst Fund backs decarbonisation innovators
Scaling Australian climate tech to tackle hard-to-abate industries
The CEFC has made a $20 million cornerstone investment in the IP Group Climate Catalyst Fund to back emerging Australian climate technologies and support the mobilisation of private capital to decarbonise industry.
$20 million
CEFC investment
Climate tech
innovation
Hard-to-abate
industry focus
Australia is home to some of the world’s most exciting climate tech innovation, and by partnering with the CEFC we can help those companies scale faster and reach global markets.Greg SmithChief Executive, IP Group
Our investment
The CEFC has made a $20 million cornerstone investment in the IP Group Climate Catalyst Fund, alongside $30 million from IP Group Australia. IP Group is fundraising to bring in additional third-party investors.
The CEFC investment was made through its Powering Australia Technology Fund that backs high-growth businesses committed to decarbonising the Australian economy.
IP Group Australia works with leading universities, superannuation funds and corporates and is focused on commercialising innovative research and transforming groundbreaking research into viable businesses.
The Climate Catalyst Fund backs breakthrough technologies that are expected to define the next era of decarbonisation.
The Fund connects long-term institutional capital with climate tech innovation and is focusing on hard-to-abate sectors, which the World Economic Forum Net Zero Industry Tracker found accounted for almost 40 per cent of global greenhouse gas emissions.1
This is a strategic relationship between IP Group Australia and the CEFC that is targeting a US$30–50 trillion global decarbonisation opportunity by investing in Australian-emerging climate technologies. Mobilising private capital directed at decarbonising industry is a huge part of what the CEFC is trying to achieve.Malcolm ThorntonHead of Growth Capital, CEFC
1 World Economic Forum article on Hard-to-abate sectors, December 2024
OUR IMPACT
Targeting hard-to-abate sectors with innovation
Industries such as manufacturing, mining and heavy transport are challenging to decarbonise because they rely on traditional energy-dense fuels that are often high in carbon.
The World Economic Forum Net Zero Industry tracker estimates that US$30 trillion in additional capital is required by 2050 to achieve net zero goals in hard-to-abate sectors.2
Australian climate tech industry network Climate Salad has found that Australia’s clean energy solutions are increasingly built for global markets and investors worldwide are paying attention. Climate Salad reports that the Australian climate tech industry has built up momentum and is poised for billion-dollar scale.
Green steel, critical minerals, home electrification, AI-powered agriculture, mid-scale energy generation, batteries, and carbon removal are among the areas of opportunity for climate tech focused on emissions reduction or removal.3
Fund focuses on Seed and Series A investments
IP Group provides experienced support to expedite new technology towards commercialisation. It has an Australian climate tech portfolio that includes hydrogen electrolyser company Hysata, lithium innovator Electralith, asset optimisation platform for grid-scale batteries Optigrid and Banksia Minerals Processing, which is developing a novel process for refining copper. The CEFC has also backed Hysata and Optigrid in earlier investments
The IP Group Climate Catalyst Fund will target Seed and Series A investments in areas including industrial processes such as cement, steel and chemicals; mineral processing and its supply chain; transport including aviation, shipping and freight; energy-efficient AI and data centres; agriculture and land use; and dispatchable energy and grid balancing. Initial investments are expected to be in ground-breaking technology innovations from IP Group Australia’s partner universities and its existing portfolio.
2 World Economic Forum article on Hard-to-abate sectors, December 2024
3 2025 Climate Salad Australian Climate Tech Industry report
