A $100 million investment fund is on the lookout for Australian start-ups developing climate-friendly energy, transport and farming innovations after securing support from more than 50 companies.
Virescent Ventures announced the launch of its second climate technology fund on Tuesday, with the backing of firms including Westpac and the Clean Energy Finance Corporation.
But the size of the fund may grow, according to managing partner Kristin Vaughan, who said the firm was targeting a total of $200 million and further capital could be "expected shortly".
The announcement comes at a challenging time for renewable energy investments as some high-profile renewable hydrogen projects in Australia have faltered, including plans backed by Origin Energy and Fortescue Mining.
The venture capital firm, created by the Clean Energy Finance Corporation in 2022, invested more than $270 million in climate technology through its first fund.
Its second investment fund would continue to target start-ups developing environmentally friendly technology and innovations, Ms Vaughan said, and partners had already launched discussions with potential candidates.
"We're looking to build on that track record... to continue to focus around decarbonisation," she told AAP.
"We will invest across the economy into early stage technology companies that are looking to decarbonise."
Priorities for the fund include developments in clean energy solutions, electricity grid management, low-emission transport, and sustainable agricultural projects.
Firms targeting greater climate resilience and critical mineral processing would also be prioritised, Ms Vaughan said, and investors would consider whether technologies could have worldwide applications.
Clean Energy Finance Corporation chief executive Ian Learmonth said the fund would provide an opportunity to raise the profile and reach of local innovations.
"In this critical decade to decarbonise, Australia must continue to back our homegrown climate tech pioneers and their groundbreaking solutions," he said.
Previous investments by the firm have included electric car charging network Jet Charge, agribusiness Loam, ultra-light solar developer Sunman, and hydrogen equipment manufacturer Hysata.
But the fund's launch comes after some investments in Australian hydrogen technology have faltered.
Origin Energy announced it would not follow through with a planned investment in the NSW Hunter Valley Hydrogen Hub with Orica last week, with chief executive Frank Calabria saying the market was "developing more slowly than anticipated".
Fortescue Mining also put its green hydrogen target on hold in July.
The company had aimed to produce 15 million tonnes of renewable hydrogen each year by 2030.
