Australian thermal storage company secures $40 million to help replace fossil fuel boilers

Australian clean technology company Graphite Energy says it has secured $40 million that it hopes will help accelerate the large-scale deployment of its Green Steam thermal energy storage systems.

Graphite Energy announced before the Easter long weekend that it had concluded two major funding milestones, consisting of a $15 million loan facility and a $25 million equity subscription agreement.

The combined $40 million in capital will help Graphite Energy scale deployment of its Green Steam systems, renewable energy-powered thermal energy storage (TES) systems that can replace fossil fuelled boilers with clean steam.  

Green Steam works in conjunction with existing boiler set-ups, delivering zero-carbon process heat without the need for massive redesigns or infrastructure upgrades. In turn, companies can reduce their emissions while also reducing operating costs, risks, and insurance.

“This funding marks a major milestone for Graphite Energy,” said Peter Lemmich, CEO of Graphite Energy.

“Demand for our Green Steam solution is accelerating, and we now have the capital to deliver at the pace our customers require. Our technology enables manufacturers to reduce operating costs today, while positioning their businesses for a low-carbon future.”

Graphite Energy is already in the process of installing two Green Steam systems with major multinational food and beverage companies, with another eight projects reportedly moving through detailed engineering.

A Green Steam system is also already operating at a Mars petfood factory in Wodonga, having begun operations in early 2024 to provide heat for the cooking of its small trays of wet petfood.

The $15 million non-dilutive loan facility was provided by Australian boutique financier and advisory firm Catalytic Impact Capital.

“Graphite Energy represents the kind of high impact, commercially scalable technology that can transform the industrial energy landscape,” said Paul Byrne, CEO of Catalytic Impact Capital.

“Their Green Steam system delivers immediate economic and emissions benefits and we are very pleased to be supporting their next phase of growth.”

Graphite Energy also signed a $25 million equity subscription agreement that was supported by existing shareholders, led by the family office of Lyall and Toni McLachlan, in conjunction with a new institutional investor.

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