Australian clean technology manufacturer Graphite Energy has secured $40 million in combined debt and equity funding to accelerate the rollout of its Green Steam™ thermal energy storage system, targeting industrial decarbonisation across the manufacturing sector.
The Sydney-based company develops electric boiler systems that integrate thermal energy storage to capture low-cost renewable electricity and convert it into industrial steam. The approach is designed to replace conventional natural gas boilers, offering manufacturers a pathway to reduce both operating costs and emissions.
The funding package includes a $15 million non-dilutive loan facility from Catalytic Impact Capital, alongside a $25 million equity subscription agreement backed by existing shareholders and a new institutional investor. The equity raise is led by the family office of Lyall and Toni McLachlan.
Paul Byrne, Chief Executive Officer at Catalytic Impact Capital, shared that the investment reflects growing confidence in commercially viable decarbonisation technologies.
“Graphite Energy represents the kind of high-impact, commercially scalable technology that can transform the industrial energy landscape,” Byrne said.
“Their Green Steam™ system delivers immediate economic and emissions benefits and we’re very pleased to be supporting their next phase of growth.”
Graphite Energy was advised on the transaction by Rennie Advisory.
“Decarbonising industrial heat requires solutions that deliver both cost savings and emissions reduction. Graphite Energy’s achieves both,” said Matt Rennie, Director at Rennie Advisory.
“This funding provides the momentum needed to scale Graphite Energy across the Australian manufacturing sector.”
Industrial heat accounts for a significant share of energy use in manufacturing, with many processes still reliant on fossil fuels. Electrification of heat, supported by renewable energy and storage, is increasingly being identified as a key pathway to reduce emissions in hard-to-abate sectors.
Peter Lemmich, Chief Executive Officer at Graphite Energy, shared that the capital raise positions the company to meet rising customer demand.
“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,” Lemmich said.
The company is currently installing two Green Steam™ systems with multinational food and beverage manufacturers, with a further eight projects progressing through detailed engineering, signalling early commercial traction for the technology.
