Ausra Inc., the solar thermal energy producer founded with Australian brains and Californian money, has completed a $60.6 million funding round to help finance the establishment of a major solar thermal power plant in the US and new ventures in Australia.
The company, founded by former UNSW researcher David Mills, who left Australia several years ago to establish his business in California, where the grass was greener both in terms of government policy and capital backing, is now in a new phase of expansion after successfully testing its technology.
Ausra’s second major round has brought Melbourne-based Ventures, venture capital arm of the Starfish group, as a new shareholder, along with London-based KERN Canada Energy Partners and Generation Investment Management. The fundraising was also supported by Ausra investor foundation Khosla Ventures and Kleiner Perkins Caufield & Byers.
The funds will be used to finance the company’s research and product development and commercial activities, including the completion of its 5-megawatt solar thermal power project near Bakersfield, California.
This facility, which will be the first power plant in North America to incorporate Ausra’s core technology—the Pact Linear Fresnel Reflector solar collector and steam generation system—will lead to the development and construction of a 177MW solar thermal power plant for Pacific California Gas and Electric Company.
In Australia, Ausra has a small facility connected to the Liddell coal-fired power station in the Hunter Valley, which is about to be expanded to help reduce the power station’s carbon emissions.
Star says his interest was sparked by solar thermal technology’s ability to act as a transitional technology for the coal industry and its capacity to produce low-cost energy on its own.
Starfish has invested in three clean technology companies and added a clean technology investment mandate to its second-round technology fund in late 2007, which, at $185 million, is Australia's largest venture capital fund.
Chief Investment Officer Aaron Garlito, one of two executives brought in to seek clean technology investments, says the company was happy to invest in Ausra, having missed out in the first round, as they did not have a clean technology mandate at the time.
"This is a big round, and it's a big deal for us," he says.
Starfish's other clean technology investments include Australian water sensing technology company Senbiro and Australian fish farming technology company Myriax.
