The technology works by storing energy as heat so it can be converted back into more usable energy on demand.

This week, Mr McGowan will pitch to senior federal government officials on the potential of the system to help Australia meet its Kyoto protocol targets.

By enabling cost-effective storage of energy, Mr McGowan and fellow investor, Neil Lewis, believe the technology can eventually help narrow the disparity between energy costs during times of peak and off-peak demand.

They also believe it could be applied to help Australia meet its targets for developing renewable energy sources such as hydropower.