Australian gentailer Origin Energy is branching into the “fast-growing” business of supplying end-to-end smart energy and decarbonisation strategies for large industrial customers, after taking a 20 per cent stake in New South Wales based start-up Climatech Zero.
Founded in 2018 as Crowley Carbon Australia as a joint venture between Climatech and Cool Planet before rebranding in 2022, Climatech Zero specialises in providing energy management and decarbonisation solutions for industries including mining, manufacturing and food production.
Under the deal announced on Tuesday, Origin will provide “material growth capital” to Climatech Zero and collaborate on “go-to-market initiatives” to support the fledgling company as it scales.
“Origin’s investment in Climatech Zero reflects our belief in their offering and provides us with exposure to a fast-growing segment,” said Origin Zero executive general manager James Magill.
“Climatech Zero’s tailored engineering solutions for industrial customers complement Origin’s strengths in front of the meter and behind the meter, solar and demand-side management solutions.
“Ultimately, we believe these arrangements will help accelerate our ability to reduce customers’ carbon emissions at the same time as reducing their energy costs,” Magill said.
Since its inception, Climatech Zero has delivered 29 projects for its industrial customers, which have delivered over $4 million in savings and helped to reduce CO2 emissions by nearly 30,000 tonnes and delivered 37,770,224 kWh in energy savings.
Operating across both Australia and New Zealand, Climatech Zero is working across a range of sectors including mining, manufacturing, and food production.
Among the company’s customers is shopping centre company Scentre Group, with which Climatech Zero has worked to improve the operational performance of three of its Westfield shopping centres in New South Wales.
It has also worked with manufacturers across the spectrum, including producers of glass, cardboard, and plastics, and industrial bakeries or a flour mill; and is in the process of increasing the energy efficiency of three mines across Australia.
“This partnership was born out of a mutual passion for aligning with the needs and ambitions of our large industrial customers to use less energy and reduce emissions,” said Peter O’Connell, co-founder and CEO of Climatech Zero.
“Our expertise providing transition services behind the meter combines perfectly with Origin’s forward-thinking goals to support clients through the energy transition.
O’Connell says the business is on target for 300% revenue growth in the 2024 financial year and is well positioned for further growth.
“Working together with Origin, we can offer more value to Australian industrial companies. Our resources, technology and skills can help customers underwrite new investments, improve existing operations and ultimately accelerate the energy transition journey.”
