Electrifi Ventures makes quickfire investment in energy tech startup MGA Thermal's $14.1m raise

Climate tech angel investor Electrifi Ventures, in partnership with Climate Salad, has taken a small but strategic stake in Newcastle-based energy technology startup MGA Thermal in the closing stages of the company’s $14.15 million pre-Series B capital raise.

While the details of the investment have not been disclosed, Electrifi is understood to have stumped up $200,000 for an interest in MGA Thermal which is developing a long-duration renewable energy storage system that can potentially transform coal-fired power plants into green energy hubs.

The investment, which was wrapped up by Electrifi Ventures in just two weeks, comes on the heels of long-time backer the Australian Renewable Energy Agency (ARENA) contributing $2.5 million in the latest funding round.

Citing a report from the Angel Investment Network that 80 per cent of Australian startup founders are optimistic about the year ahead, despite access to capital being a major concern, MGA Thermal says the rapid closure of the investment by Electrifi Ventures highlights its strategic importance to the company.

“In a landscape where funding accessibility remains the biggest hurdle for founders, the combined support of Electrifi Ventures and Climate Salad demonstrates the power of ecosystem collaboration in advancing climate innovation,” says Mark Croudace, CEO of MGA Thermal.

“This investment, alongside ARENA’s support, will accelerate the completion of our demonstration unit, advancing our mission to revolutionise industrial energy storage.”

MGA Thermal, which made its mark in the startup space early last year when global energy giant Shell US$400,000 ($560,000) contributed to its growth journey through the Shell GameChanger program, has undertaken a design review of its demonstration plant after overheating during pilot testing last year.

However, the technology has proven itself to be capable of operating 24-7.

The company’s Thermal Energy Storage (TES) system is designed to allow renewable electricity to be stored through modular thermal blocks, which MGA Thermal says is a “critical solution for industrial electrification”.

The miscibility gap alloy (MGA) blocks, which are stackable and can be amassed to scale up to a required energy supply, are created using metal alloy particles that are dispersed throughout a matrix material.

Sourcing power from renewables, such as solar and wind farms, these alloys melt as energy is absorbed while the outer matrix material remains solid, keeping the molten particles in place and rapidly distributing the heat. The solid-to-liquid phase change stores the energy which is then released as the blocks cool and the metal particles solidify. The blocks can store and deliver energy at a constant output temperature while remaining outwardly solid.

The energy stored in MGA blocks also can be used directly as heat to create “green steam” for industrial processes or drive electricity generating systems that effectively delivers 24-7 power from renewables.

MGA Thermal says its momentum with capital markets comes amid unique challenges for climate tech ventures in terms of customer acquisition and development cycles, despite validation of the technology globally.

“With many Australian climate tech deals still in pre-seed and seed stages, angel investment remains one of the largest and most impactful funding source,” says Danin Kahn, partner at Electrifi Ventures.

“Our network of over 350 climate tech-focused angel investors is committed to bridging critical funding gaps with the speed and certainty that emerging clean technology companies need.”

Electrifi Ventures manages a portfolio comprising investments with a focus on lean energy and climate-tech businesses, including National Renewable Network, battery technology company Sicona and solar cells startup Sundrive. It is also invested in organic waste startup Goterra and plant-based meat company Harvest B.

MGA Thermal is also backed by Main Sequence, Melt Ventures and clean-tech partnership JEKARA.