FOAK, that's a lot
It takes a village to get 'first-of-a-kind' (FOAK) climate-tech project off the ground
šIām sorry, did you say FOAK?
You may have heard the term "First of a Kind" (FOAK) being thrown around before.
In the context of Australian climate-tech, it often refers to projects which are the first to take a technology from something that works in a lab to works in the real world.
At the Australian Renewable Energy Agency, given we provide grants to renewable energy innovation (i.e. projects that canāt stand up yet by themselves without grant assistance), we come across a lot of FOAK projects.
Each day I am reminded that project funders like us are just one teeny tiny piece of a much bigger puzzle in getting these projects off the ground. Funding is one thing - then thereās securing customers, navigating regulation, finding mentors, the list goes onā¦
Today Iāll be doing the rundown of the key players in this complex puzzle.
š¾The climate-tech ecosystem puzzle pieces
This overview of ecosystem ābucketsā is just a starting point, and many players will sit across multiple buckets. It just comes to show how complex this puzzle is!
š·š¼āāļø1. The technology builders
These are the people turning ideas into commercial products and services. Climate-tech companies like Biocare, Aquila, Sundrive, and GridSight are at varying stages - some earlier in development, others deploying to customers globally. They vary by:
Stage of commerciality - e.g., R&D, to pilot, demonstration, full commercial deployment.
Technology focus area - e.g., solar farms, long-duration storage, energy forecasting
Social license for deployment, i.e. how readily society accepts and trusts their technology) - some technologies (e.g., rooftop solar panels) have been around for decades whilst others are concepts which mainstream society is still getting its head around.
šø2. The end customers
Someone has to pay for new technology, often with calculated risk for unproven solutions. They vary by:
Customer segment - e.g., residential (homes), commercial (small businesses up to big shopping centres), industrial (mining companies, manufacturers)
Risk tolerance - some customers (e.g., large customers with fat R&D budgets) can afford to trial unproven technologies, while others prefer to purchase solutions with guaranteed results.
š¤3. The financiers
The funding landscape includes players with different motivations: government funders (e.g., CEFC, ARENA, National Reconstruction Fund), VCs (e.g., Vitality Capital Partners, Investible), institutional investors (e.g., AustralianSuper), project developers (e.g., Akaysha Energy), universities, and philanthropic/ not-for-profit organisations. They vary by:
North star/ core objectives - e.g., emissions reduction, financial returns, social impact.
Funding mechanism - e.g., grants, equity, debt and hybrid instruments.
Technology maturity preference - some financiers are willing/able to take on early-stage and āriskierā early-stage R&D, whilst others require proof of customer validation before investing.
š4. The connectors
These organisations oil the wheels of the climate tech machine: accelerators (EnergyLab, Startmate), industry bodies (Sydney Net Zero Institute, Australian Photovoltaic Institute), and ecosystem hubs/networks (First Nations Clean Energy Network, Climate Salad, Greenhouse). They vary by:
Support type - e.g., coaching on commercialisation strategy, providing peer networks, seed funding, introductions to investors and customers, and technical expertise.
Connection focus - some act as a bridge between researchers and industry, whilst others connect stakeholders across specific technology areas (e.g., agri-tech) and foster partnerships (e.g., across First Nations communities).
š¤5. The analysts and advisors
These organisations provide subject matter expertise, market insights, and other types of āprofessional servicesā. They range from consulting firms (BCG, ThinkPlace, First Nations Carbon), legal firms (e.g, Ashurst),and market-intelligence firms (Bloomberg, Wood McKenzie, EndGame Analytics). They vary by:
Specialisation - e.g., design thinking, First Nations knowledge on land/ resource management, community consultation, M&A due diligence, technical analysis, regulatory expertise.
Target clients - e.g., ASX100 companies requiring mandated compliance, government organisations needing policy advice, startups seeking commercialisation guidance.
šļø6. The opinion shapers
These players help educate and shape public opinion. They include climate advocacy groups (e.g., Clean Energy Council), community groups (e.g., Climate Writers), education platforms (e.g., Greenfluence), and climate-tech journalists/ authors (e.g., CTVC, RenewEconomy). They vary by:
North star/ core objectives - e.g., to inform, to influence, to educate (often multiple).
Audience focus - e.g., policymakers, communities, customers.
Medium - e.g., newsletters, podcasts, social media, protests.
š7. The rule makers
These organisations create "system-wideā settings. They include regulatory and market bodies (e.g., AEMO, AER, and AEMC - I call these the āAās) that oversee things like grid connection approvals, tariff policies, and market rules. Thereās also government departments like DCCEEW which influence markets through policy and national roadmaps. They vary by:
Jurisdictional scope - e.g., AEMO operates Australia-wide, while some bodies are state or territory specific.
Legislative mandate (often relevant for public bodies) - some organisations have their scope defined by specific legislation (e.g., ARENA is governed by the ARENA Act)
ā”8. The infrastructure backbone
These organisations provide the foundation that makes large-scale technology deployment possible. They include power distributors (think poles, pipes and wires), trade infrastructure (e.g., ports), and trainers to upskill the workforce (e.g., TAFE). They vary by:
Service type - electricity networks, gas pipelines, ports, transport corridors, digital infrastructure, workforce upskilling
Scale - local vs state-wide vs national.
Ownership model - e.g., government-owned vs private
š¤·š»āāļø Lessons about navigating this ecosystem
To wrap things up, here are three lessons learnt from the past few years of ecosystem conversations:
Everyoneās got a mate whose got a mate working in X. Australiaās climate-tech ecosystem is small (but mighty). Use this to your advantage.
Those acronyms definitely don't exist outside your organisation. Trust me.
People donāt care about your problems. Reframe them in a way that resonates with the problem they are trying to solve for themselves.
š¬ That's all, FOAKs
Think I'm missing a key player above, or want me to build a personality quiz called which climate-tech ecosystem player are you? Reach out - I'd love to hear from you.
Sidenote - last month I had my first IRL coffee catchup with a reader (shout out, Frieda) and ran into another on the train (hi, Harry). Speaking of IRL, Iām on a panel this Thursday - see some of you there! š
Until our next bite-sized topic,
Linda