Australia's largest renewable energy fund launched in Sydney

The Australian government on Thursday announced the nation's largest renewable energy venture capital fund would be managed by Southern Cross Venture Partners Pty Ltd to help local renewable energy companies get started from early 2012. Launching the fund in Sydney on Thursday, Australian Energy Minister Martin Ferguson said the federal government's contribution of 100 million AU dollars (98.89 million U.S. dollars) would be matched dollar for dollar by Asian investor Softbank China Venture Capital, making available a total of 200 million AU dollars (197.78 million U.S. dollars) to support renewable energy companies from early next year. The renewable energy fund will assist high-potential Australian renewable energy start-up companies by making critical, early- stage equity investments, the Minister said. "While Australia has many innovative companies developing renewable energy technologies, early-stage companies with a limited operating history have found it difficult to source venture capital," Ferguson told reporters. "This fund will provide capital finance and active management to help promising Australian renewable energy companies achieve commercial success in Australia and overseas markets." Ferguson said it would be up to the venture capital fund to decide what companies to give funding to. "There is no direction. There is no suggestion they should favor one form of clean energy over another or segment the industry and decide x percentage has to be renewable or against station power or whatever," he said."It's about which proposals put in front of the fund managers actually stack up." The fund is expected to be operational in early 2012, and will actively seek further private sector funding to support its portfolio of companies.