RayGen has completed its series D funding round, raising AU$127 million (US$79.86 million), one of the largest clean energy tech investments in Australia.

The company focuses on solar energy and storage solutions.

While investor details and fund allocation plans remain undisclosed, contributors reportedly include SLB, ARENA, and Equinor Ventures.

CEO Richard Payne said the funding will support RayGen’s growth and help advance renewable technologies for a global shift to sustainable energy.

🔗 Source: RayGen

🧠 Food for thought

1️⃣ Long-duration energy storage attracting significant investment despite broader clean tech funding challenges

RayGen’s $127 million Series D raise stands out against a challenging backdrop for clean energy investments, where the sector has struggled with profitability since 2020 due to high interest rates, inflation, and supply chain bottlenecks 1.

This substantial investment specifically targets long-duration energy storage technology, addressing a critical gap in renewable energy systems as wind and solar generation increases globally, with these sources now generating 27% of electricity in the EU 1.

The investment profile is particularly notable for attracting diverse backers, including traditional energy companies (SLB, Chevron Technology Ventures, Equinor Ventures), utilities (AGL), and infrastructure providers (Quanta Services), indicating broad recognition of storage technologies’ strategic importance 2.

RayGen’s “thermal hydro” technology, with its 70% round-trip efficiency and current 2.8MW/50MWh operational capacity, represents the kind of innovation needed as battery storage investment is projected to exceed $50 billion globally in 2024 3, 4.

This funding success highlights how specialized energy storage technologies are gaining traction despite the average returns for alternative energy funds being negative in recent years 1.

2️⃣ Australia positioning itself as a clean energy technology exporter, not just a resource supplier

RayGen’s funding round represents one of the largest clean energy technology raises in Australian history, signifying the country’s growing role in developing exportable clean energy intellectual property rather than merely supplying raw materials 2.

The company’s plans to build a manufacturing facility in Australia for its solar modules indicate ambitions to establish domestic clean technology manufacturing capabilities 3.

This development aligns with broader Australian government support for clean energy innovation, with RayGen having previously received approximately AU$40 million in government funding to develop its technology 3.