The Energy Research and Development Corporation (ERDC) was created by the Australian Government in 1990 to facilitate and stimulate investment in effective energy innovation for the benefit of Australia. ERDC invested in energy innovation from concept to commercialisation. ERDC concentrated its investments on traditional energy supply, alternative and renewable energy sources and systems, and sustainable energy use.

During eight years of operation, ERDC invested almost $100 million in 350 early stage ventures.

Investments covered innovation across all traditional and emerging sectors of energy supply and use.

ERDC projects were approved after a due diligence process which included a thorough evaluation of technical, financial and managerial capabilities of the proponents and the merits of the project. Market and commerciality issues were also addressed.

ERDC was committed to work closely with Australian industry to deliver new products, services, processes and systems.

ERDC's investment activities were terminated in the 1997 Federal Budget and the corporation is being wound- up.

The formation of Magma by three members of the ERDC management team, has kept together their skills and experience in the management of investment in innovation, and made them available to industry and government.