Australia launches $200-million renewable energy venture capital fund

By eGov Innovation Editors | Dec 28, 2011

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The Australian government recently announced a $200-million renewable energy venture capital fund that would support renewable energy companies beginning early 2012. The fund, which is the largest ever funding allocation for green initiatives to date, will be managed by Southern Cross Venture Partners Pty Ltd.

A news release in the government website said Australia's commitment of $100 million through the Renewable Energy Venture Capital Fund will be matched dollar for dollar by Softbank China Venture Capital, which has experience in venture capital cross the Asian region.

The $200-million Southern Cross Renewable Energy Fund will assist high-potential Australian renewable energy start-up companies by making critical, early-stage equity investments.

“While Australia has many innovative companies developing renewable energy technologies early-stage companies with a limited operating history have found it difficult to source venture capital,” Minister for Resources and Energy Martin Ferguson AM MP said during the fund's launch at the University of Technology Sydney early this month.

“This fund will provide capital finance and active management to help promising Australian renewable energy companies achieve commercial success in Australia and overseas markets," he added.

The report also disclosed that the Southern Cross Renewable Energy Fund forms part of the Australian government's $3.2 billion Australian Renewable Energy Agency.