Queensland Investment Corporation tips $10 million into climate tech VC Virescent Ventures

A recent change of government in the Sunshine State has not slowed the Queensland Investment Corporation’s (QIC) enthusiasm for backing venture capital firms eager to invest in local startups.

QIC joined Westpac and the Clean Energy Finance Corporation (CEFC) as a cornerstone investor in Virescent’s new $200 million climate tech fund (Fund II), reportedly tipping in around $10 million to take the total commitments to $125 million.

Virescent is Australia’s largest dedicated climate technology investor, emerging from the CEFC’s Clean Energy Innovation Fund in 2016. Since then it’s $270 million in 37 investments spanning clean energy, sustainable agriculture, circular economy, and smart cities.

Its investments include lithium battery recycler Renewable Metals, green hydrogen electrolyser manufacturer Hysata’s record $172 million Series B, soil decarbonisation agtech Loam Bio, and textiles dyeing startup Xefco.

Other climate tech companies Virescent has backed include ultra-lightweight solar panels developer Sunman; MicroTau, an innovator in aircraft drag reduction technology; battery energy storage startup Relectrify; and Novalith, which is developing a faster, cheaper and cleaner process to extract battery-grade lithium.

Virescent managing partner Kristin Vaughan said they’ll announce the first investment from the new fund shortly.

“The calibre of investors backing Fund II shows the confidence major public and private investors have in Virescent and our track record, and the opportunities in Australian climate tech,” she said,

With abundant natural resources, significant human capital and a steady regulatory environment, Australia has an immense opportunity to be a global leader in climate technology innovation and commercialisation.”

QIC investment director Lottie Bryon said backing Virescent’s Fund II gave them a chance to work with an Australian-based climate manager on the global transition to net zero.

“Their CEFC heritage affords Virescent deep expertise and touch points into the clean energy sector, producing a unique origination model that delivers attractive investment opportunities,” she said.

“Acknowledging the significant investment required to reach net zero, providing early-stage companies with growth capital to realise opportunities in this enduring secular trend sits at the core of QIC’s climate mandate strategy.”