Research highlights – hydrogen production 

AP Ventures has an extensive research activity to stay ahead of market trends and deploy effectively its capital. Lately, we have focused on hydrogen production as an area of interest. We see the ability to produce competitively priced low-carbon hydrogen as critical – in terms of decarbonising current hydrogen production, making existing end-use applications more competitive and enabling hydrogen to be more competitive in new technologies such as synthetic fuels, ammonia and heavy-duty trucks.

Here are a few thoughts we would like to share on the different modes of producing hydrogen

Green hydrogen

·       Water electrolysis technology is highly attractive, and we believe it has an exciting long-term future.

·       We see attractive investment opportunities in many areas, for example, in:

o   Helping achieving electrolyser scale (the EU recently released a strategy calling for 40GW of electrolyser capacity by 2030, as well as the formation of a supply chain of 40GW of electrolyser capacity for the import of hydrogen from outside of Europe. To put the magnitude of this scale-up in context, the EU currently has an installed water electrolysis capacity of ~100MW)

o   Stack and system architecture that reduces OPEX requirements (this is particularly important as renewable energy costs currently account for >75% of the cost of green hydrogen)

o   Stack and system architecture that can leverage the fuel cell supply chain (there are certain components and design synergies that can be utilised across the two technologies),

o   Reducing the capital cost of key components, and

o   Technologies (e.g., synthetic fuels) that can utilise green hydrogen to decarbonise hard-to-abate sectors such as air travel.

·       Although we are seeing significant project opportunities in the market for utilising competitively priced green hydrogen through curtailed and surplus renewable power, hydrogen costs from electrolysis are generally still more expensive than hydrogen from fossil fuels. We believe therefore that electrolysis will struggle to solely meet low-carbon hydrogen demand due to current capacity limitations for both electrolysers and installed renewable energy. We see a strong case for other forms of low-carbon hydrogen production.

Blue hydrogen

·       We believe that continuing to use natural gas is an attractive method of producing hydrogen, as long as the carbon by-products associated with the process are captured, sequestered or used in other industry. We see blue hydrogen as being crucial in meeting the short-to-medium term low-cost hydrogen demand, as well as providing long-term baseload supply even after green capacities have scaled up.

·       Key general economic drivers include the cost of natural gas, the price of carbon and location to markets and sequestration.

·       If gaseous carbon is produced in the form of carbon dioxide through reformation, the purity of CO2 produced is important as well as location, to offer either industrial utilisation opportunities or permanent sequestration through geological storage. We have an exciting investment in this space, Zeg Power, which produces very pure CO2 as a by-product, and is collocated with the Northern Lights project site and actively working with the project team.

If solid carbon is produced via methane pyrolysis, then the price of natural gas becomes more important as double the quantity is required (as a hydrogen source in lieu of water). However, solid carbon can be more easily captured, transported, sequestered or used, if applicable.

Starfire Energy Inc issues bridge round with contribution from AP Ventures and Rockies Venture Club

·      Funds will be used for engineering and design of Starfire’s modular 50 tonne per day green ammonia production system

·      The bridge round was supported by AP Ventures, Rockies Venture Club and a Friends and Family private placement

December 11th, 2020. Denver, USA – Starfire Energy Inc, a leader in green ammonia synthesis and cracking, announces the completion of a bridge round. Contributors included hydrogen-focused, globally mandated AP Ventures, Rockies Venture Club, one of the USA’s oldest and most active Angel Groups, and many friends and family.

Ammonia is a promising energy carrier with an energy density comparable to fossil fuels and significantly higher than Li-ion batteries, compressed or liquid hydrogen. It can be cheaply and easily stored and transported, leveraging established infrastructure and shipping networks, and is regulated by well-developed codes and standards. It can be used directly as a fuel or it can be 'cracked', and its hydrogen harvested, to provide a stable, efficient means of hydrogen storage and transportation.

Conventional ammonia production has a significant carbon footprint. Traditionally made from natural gas, the production of ammonia emits 2 tonnes of carbon dioxide for every one tonne of ammonia produced. Starfire Energy’s ‘Rapid Ramp NH3’ ammonia synthesis technology produces zero carbon ammonia using only renewable energy, air and water as inputs. The modular solution is sized to connect directly with renewable energy production, providing a scalable, distributed source of zero carbon ammonia. The company has also developed their Prometheus Carbon-free Fire, a system to crack ammonia back into hydrogen, providing an efficient means of green hydrogen storage and transport. 

“We are looking forward to furthering product development that will contribute to the world’s transition to clean fuels,” said Jennifer Beach, COO of Starfire Energy. “We are excited to become part of AP Ventures' investment portfolio. In addition to their financial resources, they provide a wealth of hydrogen industry experience and connections to excellent strategic partners,” added Joe Beach, the company’s CEO.

“We are delighted to support Starfire Energy in their recent bridge round. As an established investor in the hydrogen industry, we are excited by the opportunity for Ammonia to decarbonize chemical and industry value chains, and the role it can play in enabling a low-cost storage and transport solution for green hydrogen. We are impressed by Starfire’s team, and the unique modular synthesis and cracking technology they have developed. We look forward to working with Starfire; sharing AP Ventures’ expertise, experience and network to create further value for the Company”, says Andrew Hinkly, Managing Partner, AP Ventures.

“The Rockies Venture Club’s Cleantech Angel Investor Group is excited to support Starfire Energy.  We first met Starfire Energy at our HyperAccelerator program where we were impressed with the team and technology.  We are excited to make this investment at this time because Starfire fills a massive need for energy storage and transportation as we move to increasing carbon-free energy production and distribution globally.  The market timing for this kind of clean technology is strong and we expect it to grow exponentially during the coming years.”  Peter Adams, Executive Director, Rockies Venture Club.

About Starfire Energy Inc.:

Starfire Energy is a Colorado Public Benefit Corporation with a stated mission to focus company efforts on products and services that reduce CO2 in the earth's atmosphere and promote sustainable and enjoyable human civilization.  The company was co-founded by Jennifer Beach & Joe Beach in 2007 and transitioned from solar work to clean fuels in 2016.  The team of nine will soon be doubling as they move into a larger facility where they will continue to increase the size of their Rapid Ramp NH3 and Prometheus Carbon-free Fire products.

More info: https://www.starfireenergy.com/

About AP Ventures:

AP Ventures is headquartered in London and manages venture capital funds with a global mandate to invest in pioneering new technologies and businesses which aim to solve global challenges such as renewable energy integration, resource scarcity and rapidly changing demographics.

The existing portfolio is focused on the hydrogen value chain and includes investments in Altergy Systems, ERGOSUP, Greyrock Energy, HPNow, HyET, Hydrogenious LOHC Technologies, Insplorion, Plug Power and ZEG Power.

AP Ventures is led by Andrew Hinkly (Managing Partner) and Kevin Eggers (Partner). Investors include Anglo-American Platinum, Impala Platinum, the Mirai Creation Fund, Mitsubishi Corporation, Plastic Omnium, the Public Investment Corporation and Sumitomo Corporation.

More info: www.apventures.com

About Rockies Venture Club:

Rockies Venture Club is the longest running and one of the largest Angel Groups in the U.S.A., founded in 1985, whose mission is to advance economic development by actively connecting investments with the most promising entrepreneurial companies with Angel investors, venture capitalists, and other community members. Every year Rockies Venture Club offers over 140 educational programs, mastermind groups, Angel forums, and two major conferences for both investors and entrepreneurs leading to 25-30 investments per year.

More info: https://www.rockiesventureclub.org/

AP Ventures LLP Investor relations/ Email: fund@apventures.com /T:+44 (0)203 963 9217 

Johan Theron / E-mail: johan.theron@implats.co.za / T:  +27 (0) 11 731 9013/17 / M: +27 (0) 82 809 0166

Emma Townshend / E-mail : emma.townshend@implats.co.za / T : +27 (0) 21 794 8345 / M : +27 (0) 82 415 3770

About AP Ventures

AP Ventures is headquartered in London and manages venture capital funds with a global mandate to invest in pioneering new technologies and businesses which aim to solve global challenges such as renewable energy integration, resource scarcity and a growing population. The existing portfolio is focused on the hydrogen value chain and includes investments in Altergy Systems, ERGOSUP, Greyrock Energy, HPNow, HyET, Hydrogenious LOHC Technologies, Insplorion, Plug Power and ZEG Power. All these companies either utilise or enable the use of Platinum Group Metals (PGMs).

AP Ventures is led by Andrew Hinkly (Managing Partner) and Kevin Eggers (Partner). Investors include Anglo-American Platinum, Implats, the Mirai Creation Fund, Mitsubishi Corporation, Plastic Omnium, the Public Investment Corporation and Sumitomo Corporation.

More info: www.apventures.com

About Implats

Implats is a leading producer of platinum group metals (PGMs) structured around six mining operations and Impala Refining Services, a toll refining business. 

Implats’ operations are located on the Bushveld Complex in South Africa, the Great Dyke in Zimbabwe – the two most significant PGM-bearing ore bodies in the world – and the Canadian Shield, an igneous domain for PGMs.

Implats employs 50,774 people across its operations and markets and sells products in South Africa, Japan, China, India, the US and Europe. The metals produced are the key to making industrial, medical and electronic items and they contribute to a cleaner, greener world. 

More info: www.implats.co.za

• Funds will be used for scale up and market expansion of HPNow’s autonomous on-site hydrogen-peroxide generation technology solutions

• The round was led by sustainability-focused AP Ventures, together with existing shareholder Evonik Venture Capital

November 30th, 2020. Copenhagen, Denmark – HPNow, a leader in on-site, autonomous, clean hydrogen-peroxide generation technology solutions, announces the closing of a €5M financing round. The round was led by sustainability-focused, globally-mandated AP Ventures, together with the VC arm of Evonik Industries (NASDAQ:EVKIF), a global leader in bulk hydrogen peroxide.

Hydrogen peroxide is one of the world’s most widely used chemicals, with applications ranging from agriculture, municipal and industrial water and wastewater treatment, to healthcare and electronics. Today’s supply chain is greenhouse-gas and toxic-waste intensive, and involves the transport and handling of hazardous high-concentrate peroxide from centralized plants to millions of end users. Using only water and electricity as inputs, HPNow totally bypasses the present-day supply chain, enabling on-site, clean and autonomous production directly at the point of use. Following utilization, the hydrogen peroxide generated by HPNow’s systems breaks down to pure water and oxygen. The process emits no greenhouse gasses or other waste.

“The push towards a more sustainable, safer and carbon-neutral future, as well as towards reduced supply-chain dependence as a result of COVID19, is driving strong demand for our autonomous and clean hydrogen peroxide generation products”, says Ziv Gottesfeld, HPNow’s CEO. “Our products have already been commercially proven in the agriculture segment. The fresh funding and ongoing support from top-tier global investors will enable us to scale-up and expand our offerings towards new and exciting market segments, with chemical-input-free industrial and municipal water treatment next in line”.

“I am delighted to announce our investment into HPNow. The company’s autonomous, safe, low impact hydrogen peroxide production technology is an exciting example of the emerging ‘Power to X’ economy, which will be a critical lever in the global efforts towards decarbonization. I am impressed with the experience and enthusiasm of the HPNow management team and I look forward to joining the board and sharing AP Ventures’ expertise, experience and network to create further value for the Company”, says Kevin Eggers, Partner, AP Ventures.

"This patented technology offers the possibility of a demand-oriented and cost-efficient supply of hydrogen peroxide directly to the customer," said Michael Traexler, head of the Active Oxygens business line at Evonik. "This investment supports our strategy of offering our customers customized system solutions. In addition, the technology makes it possible to use H2O2 in areas where less environmentally friendly techniques have been used in the past."

In an online conference featuring the company's leadership, Plastic Omnium presented its strategic view on hydrogen mobility.

It includes

-          an industrialized and competitive offer across the entire value chain: hydrogen vessels, fuel cell stack and integrated hydrogen system

-          a rapidly expanding market from 2025 climbing to at least 2 million vehicles by 2030

-          €3 billion in revenue for Plastic Omnium in 2030 following an annual investment of €100 million over the coming years.

Find the entire press release and a recording of the conference following this link

https://www.plasticomnium.com/en/article/12-news/news-innovation/329-plastic-omnium-aims-for-world-leadership-in-hydrogen-mobility.html

Insplorion AB (public) developed a Nanoplasmonic Sensing technology (NPS), to enable precise, robust and selective measurements for a wide range of applications. This core technology can be applied to a wide range of gases and applications, such as air quality for cities and HVAC systems, hydrogen equipment and battery development and monitoring.

Insplorion’s development of the fastest hydrogen sensor in the world has developed rapidly and attracted global attention during the last year. The hydrogen sensor can be a crucial component in the rapidly growing market of hydrogen-based energy systems. The development of the hydrogen sensor and the Company’s battery sensor mean individually and together great opportunities for Insplorion, to establish a solid position in two rapidly growing markets, while commercialisation of the Company’s air quality sensors further validates the technology.

Insplorion has completed a directed issue of MSEK 30, has resolved to carry out a fully guaranteed rights issue of a maximum of MSEK 30.3, and intends to change listing to Nasdaq First North. The purpose of the transaction is to finance the acceleration of the Company’s development of its hydrogen and battery sensors, and to facilitate further commercialisation of air quality sensors. Formue Nord A/S, Thorén Tillväxt AB and one additional UK-based investment fund participated in the directed shares issue alongside AP Ventures. Naventus Corporate Finance AB, who is the Company’s financial advisor in connection with the Share Issues, have also subscribed for new shares in the directed issue.

Quotes:

Patrik Dahlqvist, CEO Insplorion
“Our hydrogen sensor has developed rapidly during the year we have been running the project, and has over the same time matched well with the fast developing global market for hydrogen as an energy carrier. The interest for the fastest hydrogen sensor in the world is large on the market, within vehicles, within infrastructure and among component manufacturers. The interest is also high among financiers, where AP Ventures, a London based specialist fund focusing on the hydrogen value chain, participate in our directed issue due to the potential of the hydrogen sensor. Today, we are very happy to strengthen our ownership base with both financial weight and industrial competence, while also receiving funds in order to realise the potential of our full sensor platform.”

Andrew Hinkly, Managing Partner, AP Ventures
“We are delighted to welcome Insplorion into our portfolio and to working closely together in the future. Ensuring safe production, transport, storage and use of hydrogen is key to unlocking the global hydrogen economy and we think that Insplorion’s sensors address these challenges; they can also support the development of more efficient and cost-effective equipment such as Fuel Cells. We are very impressed with the versatility of the technology, which has applications outside of the hydrogen value chain, as well as with the team at Insplorion. We are pleased to be part of the journey as the company scales and commercializes its innovative technology.” 

AP Ventures invests in advanced technology companies which tackle global environmental and sustainability challenges;

• AP Ventures has an existing portfolio of investments with a focus on the hydrogen value chain and fuel-cell electric mobility;

• Sumitomo Corporation joins Anglo American Platinum, the Mirai Creation Fund, Mitsubishi Corporation, Plastic Omnium and the Public Investment Corporation as an investor in AP Ventures.

London, United Kingdom, 27 October 2020: AP Ventures today announces that Sumitomo Corporation has become a Limited Partner in AP Ventures Fund II.

AP Ventures investment strategy is focused on companies developing technologies which are capable of sustainably solving global challenges such as renewable energy integration and resource scarcity. A key area of focus is the decarbonisation of transport and heavy industry. Through fuel cells, green hydrogen enables zero emission mobility while the use of hydrogen for heat can enable the decarbonisation of industries such as steel and cement manufacturing currently reliant on hydrocarbon fuels.

In welcoming Sumitomo Corporation as its sixth Limited Partner, AP Ventures and its portfolio companies look forward to benefitting from working with a global partner which has a strong focus on developing the hydrogen economy.

Commenting on the investment by Sumitomo Corporation, Andrew Hinkly, Managing Partner, AP Ventures said:

“We are delighted to welcome Sumitomo Corporation as an investor in Fund II. The development of the hydrogen economy is gaining momentum and we are excited to have the opportunity to work in partnership with a team that has a strong focus on this area. Our strategic investors’ expertise together with our experience and industry network allows AP Ventures to provide its portfolio companies with a unique combination of investment and development opportunities.”

Commenting on today’s announcement Hajime Mori, Executive Officer, General Manager of Energy Division for Sumitomo Corporation said:

“As a member of the Hydrogen Council, Sumitomo Corporation has given a priority to contributing to build a sustainable hydrogen ecosystem. On 1 October 2020, with the establishment of Hydrogen Business Department, we are entering into a new phase to accelerate hydrogen related business activities. AP Ventures has proven its ability to identify hydrogen technology start-ups and create value while facilitating collaborations between strategic corporate partners and its portfolio companies. We are excited about the opportunity to work with AP Ventures and its portfolio companies which bring innovation to our hydrogen business in the critical decades to come for climate change."

About AP Ventures:

AP Ventures is headquartered in London and manages venture capital funds with a global mandate to invest in pioneering new technologies and businesses which aim to solve global challenges such as renewable energy integration, resource scarcity and a growing population. The existing portfolio is focused on the hydrogen value chain and includes investments in Altergy Systems, ERGOSUP, Greyrock Energy, HyET, Hydrogenious Technologies, Plug Power and ZEG Power. All these companies either utilise or enable the use of Platinum Group Metals (PGMs).

AP Ventures is led by Andrew Hinkly (Managing Partner) and Kevin Eggers (Partner). Investors include Anglo-American Platinum, the Mirai Creation Fund, Mitsubishi Corporation, Plastic Omnium, the Public Investment Corporation and Sumitomo Corporation.

More info: www.apventures.com

About Sumitomo Corporation

Sumitomo Corporation is a leading Fortune 500 global trading and business investment company with 132 locations (Japan: 22, Overseas: 110) in 66 countries and regions. The entire Sumitomo Corporation Group consists of more than 900 companies. Sumitomo Corporation conducts commodity transactions in all industries utilizing worldwide networks, provides customers with financing, serves as an organizer and a coordinator for various projects, and invests in companies to promote greater growth potential. SC’s core business areas include Metal Products, Transportation and Construction Systems, Infrastructure, Media and Digital, Living Related and Real Estate, Mineral Resources, Energy, and Chemical and Electronics.

www.sumitomocorp.com

PERTH, AUSTRALIA; 12 October 2020: Hazer Group Limited (ASX: HZR) (Hazer) is delighted to advise that it has executed a non-binding term sheet with AP Ventures Fund II GP LLP (APV) for an investment in Hazer by APV.

AP Ventures is headquartered in London and manages venture capital funds with a global mandate to invest in pioneering new technologies and businesses which aim to solve global challenges such as renewable energy integration, resource scarcity and rapidly changing demographics (www.apventures.com). AP Ventures’ portfolio is concentrated in the hydrogen sector, with its investments supporting companies through their commercialisation and scale up phases. Presently, AP Ventures’ holdings in the hydrogen sector include Altergy Systems, Hydrogenious Technologies, ZEG Power, ERGOSUP, HyET and Plug Power and previously have included Ballard Power Systems as well as United Hydrogen Group.

Under the terms of the proposed agreement, APV will make a $4 million investment in Hazer and acquire 4 million unlisted notes and 2.25 million unlisted options in Hazer.

The transaction will be conditional on receipt of all necessary approvals, including any approvals required under the ASX Listing Rules, the Corporations Act 2001 (Cth) and the Foreign Acquisitions and Takeovers Act 1975 (Cth). Subject to receipt of required approvals, a representative of AP Ventures will be invited to join the Board of Hazer Group.

Tim Goldsmith, Chair of Hazer Group commented, “We are delighted to have agreed these indicative terms with APV and look forward to completing the documentation and approvals promptly and welcoming APV to the Hazer Board. The Board and I believe that APV’s deep global hydrogen experience will be extremely valuable as we commercialise the Hazer process and progress through scale-up and first commercial operations over the next few years. There is significant global focus on the transition to cleaner energy and cleaner industry, a focus that has accelerated as major economies look to transition from the impact of Covid-19. We expect hydrogen to play a major role in this. We are delighted to welcome APV to Hazer and look forward to working with them closely as we progress through the exciting times ahead.”

Andrew Hinkly, Managing Partner of AP Ventures said “We are excited to welcome Hazer Group into our portfolio and to working closely together in the future. The production of low-carbon and low-cost hydrogen is the key to unlocking the global hydrogen economy and we believe Hazer’s technology offers a unique and elegant solution. We are very impressed with the team at Hazer and are pleased to be part of the journey as the company scales and commercializes its innovative technology.”

The proposed terms are non-binding and remain subject to execution of definitive binding documentation.

ABOUT HAZER GROUP LIMITED Hazer Group Limited (“Hazer” or “the Company”) is an ASX-listed technology development company undertaking the commercialisation of the Hazer Process, a low-emission hydrogen and graphite production process. The Hazer Process enables the effective conversion of natural gas and similar methane feedstocks, into hydrogen and high-quality graphite, using iron ore as a process catalyst.

More info: www.hazergroup.com.au

ABOUT AP Ventures:

AP Ventures is headquartered in London and manages venture capital funds with a global mandate to invest in pioneering new technologies and businesses which aim to solve global challenges such as renewable energy integration, resource scarcity and rapidly changing demographics.

The existing portfolio is focused on the hydrogen value chain and includes investments in Altergy Systems, ERGOSUP, Greyrock Energy, HyET, Hydrogenious Technologies, Plug Power and ZEG Power. All these companies either utilise or enable the use of Platinum Group Metals (PGMs).

AP Ventures is led by Andrew Hinkly (Managing Partner) and Kevin Eggers (Partner). Investors include Anglo-American Platinum, the Mirai Creation Fund, Mitsubishi Corporation, Plastic Omnium, and the Public Investment Corporation.

More info: www.apventures.com

Written by Charlie Clark, one of our Investment Associates, the article highlights how disruptive we believe LOHC and Hydrogenious can be, and how together they can establish hydrogen as a globally traded commodity. Well worth a read and we’d love to get your thoughts and comments. Copy this link to read the article https://www.linkedin.com/pulse/unlocking-global-hydrogen-opportunity-charlie-clark/ .

AP Ventures' founding partner Kevin Eggers interviewed virtually with Mining Weekly against the background of Germany last month specifically including hydrogen in its economic recovery plans and other countries increasingly doing the same as part of their stimulus spending plans.

Kevin (sporting full lockdown hair) discusses the growing momentum in the hydrogen economy and the positive impact of post Covid-19 fiscal stimulus on the sector. 

Click below to watch the interview.

https://www.miningweekly.com/article/covid-19-is-an-important-catalyst-for-hydrogen-economys-take-off-ap-ventures-2020-06-22

The article highlights a heightened awareness and demand for a cleaner environment, reduced carbon dioxide production and an acceleration towards a sustainable energy future.

“It’s clear to us at AP Ventures that hydrogen has an important role to play in this, and we have witnessed a growing momentum for hydrogen and new hydrogen technologies in being able to facilitate this transition to a more sustainable energy economy."

To read the full article, please click the link below.

https://www.miningweekly.com/article/hydrogen-gaining-increasing-levels-of-interest-ap-ventures-2020-05-13

AP Ventures will ramp-up its presence in South Africa to help unlock value from this dynamic emerging market, which is central to the Platinum Group Metals', and thereby Hydrogen, value chain. To support this, we are recruiting for two roles to be based in the country. We are looking specifically for South African candidates.

Investment Associate: The Investment Associate will be responsible for the overall business development and investment process of our South African office. The candidate will also have the opportunity to work with our Cornerstone LPs. Primary to this work will be facilitating the introduction of AP Ventures’ portfolio companies into the SA market, shaping new project opportunities and building an extensive group of partners from both government and the private sector. 

**Closing date 06/07/2020 - no longer accepting applications**

Fund Accountant: The Fund Accountant is an exciting position for a confident Accountant with relevant fund accounting experience with the potential to be involved in deal execution. The successful candidate will be integral to the establishment of best practice reporting processes, enjoying significant growth and ownership of processes especially as the funds continue to grow. For more details please email Pam Darchiville (pdarchiville@apventuresllp.com).

If you are interested in applying to either of these positions, please send your CV to the following AP Ventures team members:

Fund Accountant: Pam Darchiville (pdarchiville@apventuresllp.com)

Three years ago, the Hydrogen Council catapulted hydrogen to the forefront as a source of energy for transport and industrial companies.

Now, the Green Hydrogen Consortium is attracting the attention of more companies as it puts strong emphasis on green hydrogen and fuel cell technology for mobility and power generation in mining. The consortium was initiated by Anglo-American, BHP, Hatch and Fortescue.

To read the full article, follow the link below.

https://www.miningweekly.com/article/global-mining-majors-putting-bright-new-spotlight-on-green-hydrogen-2020-03-25

ZEG Power raises NOK 130m to deploy its zero-emission hydrogen production technology

ZEG Power’s ground-breaking technology for clean hydrogen production is attracting significant attention. The globally mandated AP Ventures and SPARX Group (Mirai Creation Fund), in addition to Nysnø, the Norwegian state-owned climate investment fund, are among investors investing over NOK 130 million into the company.

ZEG Power develops clean hydrogen production technology with integrated carbon capture, based on sorbent enhanced reforming, producing streams of high purity hydrogen and high purity carbon dioxide ready for utilisation or storage. The technology was originally developed at the Institute for Energy Technology (IFE), which through its venture arm IFE Invest, will remain ZEG Power’s major owner.

The Norwegian start-up has concluded an over-subscribed round of 130 million NOK, surpassing the 100 million NOK original target. Existing investors IFE Invest and Stratel are joined by AP Ventures, Nysnø, SPARX Mirai, Nordea Investment Management, Danske Capital, CCB, and CO2 Management. The company’s near-term goals are to focus on the upscaling and commercialisation of their technology to the 250 - 5000 tonnes H2/pa scale, the recruitment of a high-performing team, and growth of key partnerships.

The integrated and cost-competitive system will meet the growing demand for zero-emission hydrogen for both mobility and industrial applications. The first ZEG-H2 plant will be built in CCB Energy Park at Kollsnes, adjacent to the planned Northern Lights large scale CO2 storage facility. Production of clean hydrogen will start as early as 2022. Until the Northern Lights CO2 storage facility is established, ZEG Power will use renewable biogas as input-gas in order to enable clean hydrogen production.

Hydrogen production from the first ZEG-H2 plant and future site expansion shall provide zero-emission fuels to Norwegian and international transport and industry users. This will accelerate the transition to hydrogen as part of wider decarbonisation efforts by the Norwegian economy.

Quotes

“This overwhelming interest, from some of the world’s leading technology players, clearly shows how important the efficient production of emission-free hydrogen is for the future. It has been important for us to attract these types of investors, bringing “smart capital” to the table. Having these key players on board provides ZEG Power with financial muscles and the ability to succeed with our ambitious plans, both in Norway and internationally.” says Kathrine K. Ryengen, CEO, ZEG Power.

“The development of low-cost clean hydrogen technologies is critical to the decarbonisation of hard to abate sectors and the accelerated adoption of hydrogen mobility. I am very impressed by the ZEG Power team, and the innovative technology they are set to rollout to market. As a board member, I look forward to working with ZEG Power; sharing AP Venture’s expertise, experience and network within the global hydrogen economy to create further value for the Company.”, says Kevin Eggers, Partner, AP Ventures

- The ZEG technology is an important next step to ramp-up clean hydrogen production, and enables Norway to build on existing industries and new markets towards the hydrogen economy. It is especially attractive that ZEG Power brings together value chains for hydrogen with carbon capture and storage, bringing new opportunities for Norway as an energy nation. We look forward to supporting ZEG Power through this next phase of commercialization at Kollsnes and beyond, says Siri Kalvig, CEO of Nysnø Climate Investments.

“The production of low-carbon and low-cost hydrogen is key to unlocking the benefits of a hydrogen society. I am very excited by the potential of ZEG Power’s technology and look forward to supporting ZEG Power through scale-up and commercialisation.”, says Masatoshi Fukami, Representative Director, Executive Deputy President, for the Mirai Creation Fund,  SPARX Group.

“We are actively searching for companies that can help traditional industry companies transform to a future low-carbon regime. We believe ZEG Power have the potential to be one of those and are pleased to be an investor in the company”, says Lars Erik Moen, Head of Equity, Danske Invest. 

“IFE has researched and developed the technology since 2001, and has put considerable efforts and resources into developing ZEG Power. We are very pleased to now get new investors onboard, with relevant competencies, network and capital to develop the company further”, says Nils Morten Huseby, President Institute of Energy Technology (IFE).

“We are looking forward to further develop and scale-up the ZEG technology together with our new investors. Our clean technology will contribute to reach climate neutrality as hydrogen becomes key in many industrial sectors.” says Jørgen Lundberg, CEO of IFE Invest AS.

“Our investment philosophy is Fun, Sense and Profit. So far, our investment in ZEG Power has made significant sense. Looking forward, with the new team, excellent partners, and highly regarded new owners in place, we look forward to fulfilling the remaining two; Fun and Profit!, says Reidar Lorentzen, Chairman, Stratel AS.

“It has been fascinating to follow ZEG Power as a Board member and seed investor on the journey from R&D project to a commercial scale-up that has attracted specialised international and national investors. ZEG Power strikes a nerve in the current energy transition with its relevant technology for producing hydrogen including carbon capture”, says Audun Abelsnes, Managing Director of Techstars Energy

“CCB has a strategic ambition to become an active participator in building a total value chain, providing clean energy to the market. Based on ZEG Power’s technology, CCB will contribute to establish a future large-scale production and distribution of emission-free hydrogen at CCB Energy Park. This will be the best location for providing clean energy in various forms, both compressed and liquefied H2, and other future emission-free products”, says Ronny Haufe, EVP, Coast Center Base AS.

ABG Sundal Collier and First Corporate acted as financial advisors to ZEG Power in connection with the capital raise. Schjødt acted as legal advisor to ZEG Power.

About ZEG Power

Created in 2008, ZEG Power is a Norwegian company located in Oslo, that aims to offer the world a cost efficient, clean alternative for energy production.   

ZEG Power delivers technology for the efficient production of clean hydrogen from hydrocarbon gases, with integrated carbon capture. Examples of hydrocarbon gases are natural gas and biogas. Natural gas is currently the largest source of hydrogen. Hydrogen from biogas combined with carbon capture can achieve a negative carbon footprint.

ZEG Power’s technology is based on research and development originated from the Institute for Energy Technology (IFE).

More info: www.zegpower.com

About Investors

About AP Ventures

AP Ventures is a venture capital fund headquartered in London. The Fund operates a global mandate to invest in pioneering new technologies and businesses which aim to solve global challenges such as renewable energy integration, resource scarcity and a growing population.

Focus areas include: the hydrogen value chain; fuel-cell electric mobility; energy storage platforms; water treatment solutions; sensors; durable electronics; and biomedical devices.

The existing portfolio includes investments in Altergy Systems, Food Freshness Technology Holdings, ERGOSUP, Greyrock Energy, High-Yield Energy Technologies, Hydrogenious Technologies and United Hydrogen Group. All these companies either utilise or enable the use of Platinum Group Metals (PGMs).

AP Ventures is led by Andrew Hinkly (Managing Partner) and Kevin Eggers (Partner). Investors include Anglo-American Platinum, the Mirai Creation Fund, Mitsubishi Corporation, Plastic Omnium, and the Public Investment Corporation.

More info: www.apventuresllp.com

About SPARX Group

The Mirai Creation Fund I began operations in November 2015 with financing of JPY 13.5 billion from three companies: Toyota Motor Corporation, Sumitomo Mitsui Banking Corporation, and SPARX, the Fund's general partner. Ultimately, the Fund received contributions from 20 companies, including the above three. Casting intelligent technologies, robotics, and hydrogen-economy technologies as core technologies of the future, Fund I has invested in approximately 50 companies and projects—from the US, the UK, Israel, Singapore, and Japan—that possess innovative technologies in these fields. In H2 2018, SPARX began managing the Mirai Creation Fund II, which targets the three existing Mirai Creation fields along with the two additional areas of electrification and new materials. As of February 28, 2020, the combined AUM for Fund I and Fund II were JPY 109.3 billion.

Mirai Creation Fund investment track record: https://mirai.sparx.co.jp/en/investment

About Nysnø Climate InvestmentsNysnø Climate Investments is a state-owned investment company established in 2017 and based in Stavanger, Norway. Nysnø Climate Investments manages NOK 1.4 billion and invests in companies and funds with profitable and smart solutions to climate change. Focus areas for investments are renewable energy, resource efficiency, enabling technologies, sustainable demand and circular economy. The existing portfolio includes Otovo, eSmart Systems, Disruptive Technologies, NorSun, Sarsia Seed II and ArcTern Ventures Fund II.  For more information see www.nysnoinvest.no/en 

About CCB

Coast Center Base (CCB) is a Norwegian company with extensive experience and expertise within providing facilities, services, production, engineering and maintenance. CCB has a strong focus on value chain management and is well established for operating and participating through networking. CCB is a 24/7 company with locations along the Norwegian coast and in Las Palmas.

Our ambition is to operate in a best possible environmental way. We organize our locations and design our activities in such a way that our customers and environment can act or conduct their business with a reduced carbon footprint.

For more information, see: www.ccb.no

About Danske Invest

Danske Invest Asset Management AS is a Norwegian asset manager wholly owned by Copenhagen-listed Danske Bank A/S, one of the 20 largest banking groups in Europe. The firm manages Norwegian equities and fixed income, in addition to a number of multi-asset funds and discretionary mandates.

About Stratel

Stratel AS is a family owned Norwegian investment and development company, with the investment philosophy for Fun, Sense and Profit. The company is well known for successful investments in both startups and ventures: www.stratel.no

About IFE

IFE is a leading international research institute within energy, health and industrial development.
IFE Invest AS is a fully-owned subsidiary of IFE, established to strengthen the commercialization effort from the institute and to contribute to a more active development of the spin-out companies. IFE Invest is responsible for all commercialization activities from IFE. 

As a preamble to their spring industry conference, the World Hydrogen Congress, Green Power Global invited AP Ventures to participate in a panel on hydrogen finance and investment. Andrew Hinkly, AP Ventures Managing Partner, was one of two key experts in hydrogen to present their viewpoints on the fast developing clean hydrogen sector.

The speakers debated on where they saw the opportunities in financing hydrogen infrastructure and technology. The panel was completed with Dr. Alena Fargere from SWEN Capital Partners.

Greyrock Energy hosted a panel at last week’s Cleantech Conference in San Francisco discussing Power-to-X technologies and commercialization.  The panel brought together thought leaders in the energy sector from Total, Mitsubishi, Morgan Stanley, AP Ventures, and Thyssenkrup

Power-to-X describes the use of power, primarily renewable, for production of fuels, chemicals or other products. Panelists discussed the use of renewable power to meet new demand drivers for low carbon products, the importance of ESG in investment decisions, challenges and opportunities in infrastructure and scale, commercial financing mechanisms and credit programs, advancements and cost reduction in electrolysis technology, and new R&D in this field.

The panelists predicted advancements in technology, cost reductions across key elements of the value chain, and a growing interest in Power-to-X during the coming year. 

Greyrock is commercializing its Carbon Recycling Solutions Power-to-X platform by developing projects that focus on the use of stranded or otherwise low-cost renewable power and industrial waste carbon dioxide as feedstocks for the production of fuels and chemicals.

Initial projects will be sited to solve logistical challenges experienced by renewable power generators, such as transmission constraints, while also addressing carbon dioxide emission challenges. 

Hydrogenious LOHC Technologies successfully concludes its present fundraising round with an investment by the Winkelmann Group adding 3.5 million to 17 million euros secured from other strategic investors in July.

At year’s close Hydrogenious LOHC Technologies GmbH welcomes another strategic investor to the Erlangen based technology start-up. In addition to Royal Vopak, Mitsubishi Corporation, Covestro and AP Ventures – who invested in July 2019 – the Winkelmann Group joins the shareholders of the company with an investment of 3.5 million euros.

The Winkelmann Group is a globally active, owner-managed company and a leader in the field of metal forming with customers from the automotive, aviation and heating industries. “Hydrogen will be a fuel for mobility as well as a source of heat and power. The technology of Hydrogenious LOHC Technologies enables hydrogen transport and storage using existing infrastructure and can therefore make an important contribution to the establishment of a hydrogen as a source of energy,” says Heinrich Winkelmann, co-owner and CEO. His company is active in both plant engineering and series production and intends to bring these competencies into the partnership with Hydrogenious LOHC Technologies.

With the expertise of the new partners and the strong financial foundation, Hydrogenious LOHC Technologies will further accelerate scaling and commercialization of the innovative LOHC hydrogen storage technology. “We are very pleased to welcome Winkelmann as an investor and strategic partner. This partnership will help us advance our vision of the LOHC-based global hydrogen infrastructure,” says Daniel Teichmann, CEO of Hydrogenious LOHC Technologies.

The LOHC technology stores large-volumes of hydrogen in an oil-like carrier fluid enabling it to be transported easily, safely and efficiently in the existing infrastructure for conventional fuels.

About the Winkelmann Group
With its three business divisions Automotive, Building + Industry and Flowforming, the Winkelmann Group is one of the leading corporate groups in the field of metal forming for major customers from a wide variety of industrial sectors.

The Winkelmann Group has its head office in Ahlen/Germany and production sites in Germany, Poland, Turkey and China and is active on global markets in a variety of industrial sectors. 

AP Ventures was approached by Mining Weekly, a leading South African mining publication, to give inputs to a special report on fuel cells and hydrogen.

The report highlighted the growing significance of the hydrogen economy globally, and the role South Africa can play in providing critical elements in the transition to an emission-free future.

Kevin Eggers, Partner of AP Ventures, was also featured in this edition as mining personality of the week.

To read the full article and Kevin's profile, follow the link

http://cdn.creamermedia.com/e-magazines/engineering-news/MiningWeeklyon20September2019/index.html

Report - pages 14 & 15

Profile -  page 54

• AP Ventures invests in advanced technology companies which tackle global environmental and sustainability challenges;

• AP Ventures has an existing portfolio of investments with a focus on the hydrogen value chain and fuel-cell electric mobility;

• Plastic Omnium joins Anglo American Platinum, the Mirai Creation Fund, Mitsubishi Corporation and The Public Investment Corporation as an investor in AP Ventures.

London, United Kingdom, 4 September 2019 - AP Ventures today announces that Compagnie Plastic Omnium (‘Plastic Omnium’) has become a Limited Partner and Advisory Board Member in AP Ventures Fund II following their commitment of $30 million in the fund.

AP Ventures’ investment strategy is focused on companies developing technologies in the hydrogen value chain, fuel-cell electric mobility and energy storage markets which are dependent upon the high-performance characteristics of Platinum Group Metals.

There is considerable common interest between AP Ventures and Plastic Omnium, a leading supplier to the automotive industry. Both organisations are committed to clean and sustainable mobility. Technological innovation and a wide geographical spread of customers characterise a business which is forward thinking and nimble. Plastic Omnium’s focus on investment, innovation and leadership has allowed the business to provide pioneering solutions for its global customer base.

In welcoming Plastic Omnium as its fifth Limited Partner, AP Ventures and its portfolio companies look forward to working with a partner which is focused on developing products which will benefit its customers as the transportation sector evolves. Plastic Omnium joins an exceptionally strong group of investors represented by Anglo American Platinum with its position in the Platinum Group Metal markets, the South African Public Investment Corporation (PIC) and the Mirai Creation Fund both with strong experience of global investment, and Mitsubishi Corporation which brings significant industrial scope and a commitment to develop new strategic activities.

Commenting on the investment by Plastic Omnium, Andrew Hinkly, Managing Partner, AP Ventures said:

“We are delighted to welcome Plastic Omnium as an investor in Fund II and member of the Advisory Board. Plastic Omnium is committed to technological innovation within the transportation sector and I see much value in this partnership. Our strategic investors’ expertise together with our experience and industry network allows us to provide our portfolio companies with a unique combination of investment and development opportunities.

Commenting on today’s announcement, Félicie Burelle, Senior Executive Vice-President, Strategy and Development, Plastic Omnium said:

“The automotive world is living through tremendous technological disruption; we are accelerating and diversifying our strategy for innovation which will allow us to provide essential technology solutions for clean and carbon-free cars. Investing in AP Ventures alongside major industrial players demonstrates Plastic Omnium‘s commitment to the development of the hydrogen ecosystem.”

Vopak, Mitsubishi Corporation, Covestro and AP Ventures invest Euro 17 million into Hydrogenious LOHC Technologies

●      Investment agreement signed with strategic partners for Hydrogenious LOHC Technologies

●      Funding round of 17 million Euro led by Royal Vopak

●      Investment enables further development of international hydrogen infrastructure and global distribution of green hydrogen

Erlangen, Germany, 31 July 2019 - Royal Vopak, Mitsubishi Corporation, Covestro and AP Ventures invest Euro 17 million into Hydrogenious LOHC Technologies GmbH and its Liquid Organic Hydrogen Carrier (LOHC) technology for hydrogen logistics.

With its innovative Liquid Organic Hydrogen Carrier technology, Hydrogenious LOHC Technologies was able to attract further strong partners. In addition to AP Ventures, who invested in the German-based company in 2014, Royal Vopak, Mitsubishi Corporation and Covestro joined as investors at Hydrogenious LOHC Technologies.  “We warmly welcome our new investors and are very excited to work with them as strategic partners who share our vision of a LOHC-based worldwide hydrogen infrastructure," said Daniel Teichmann, CEO of Hydrogenious LOHC Technologies. “With these investments, our company will be strengthening our international industrial base, using the funding to bring additional projects to market.”

The advantages of the partnership are not limited to financial support. The strategic international investors are committed to developing the LOHC technology as an essential component of the international hydrogen infrastructure. The operational expertise of Vopak and the other new investors will enable international distribution of renewable energies via hydrogen. Stored in the carrier oil, hydrogen can be transported as easily and efficiently as conventional liquid fuels. “The combination of Vopak’s global terminal and knowledge network with this LOHC technology is a breakthrough in the storage and logistics of renewable energies. This strategic partnership will facilitate development of transregional and global transport of hydrogen and contribute to the development of hydrogen-based economies,” said Marcel van de Kar, Director New Energies at Vopak.

"Asian countries have recognised hydrogen as a valuable energy carrier and the LOHC technology is expected to provide an economical viable solution that is ideal for storing large volumes of hydrogen in densely populated urban areas as well as distributing it over long distances. We expect that LOHC will play an important role in Asian energy market in the future," says Junya Nagase, GM for Precious Metals, Mineral Resources Trading Division, Mitsubishi Corporation.

Being one of the leading suppliers of premium polymers, Covestro sees innovation and sustainability as the driving forces behind the continuous development of any of the company’s products, processes and facilities. The advantages of LOHC technology in terms of scalability and feasibility of hydrogen transportation therefore perfectly fit this approach and are exactly the advantages in which Covestro is investing. “Affordable and clean energy is a key issue for the chemical industry and we believe Hydrogen has the potential to become an important energy vector in the future. We do believe that the LOHC technology is a promising solution for its transportation and storage,” concludes Dietrich Firnhaber, Head of Strategy & Portfolio Development from Covestro.

Commenting on this latest investment into Hydrogenious LOHC Technologies Andrew Hinkly, Managing Partner at AP Ventures said, “I’m delighted to welcome these new strategic investors to Hydrogenious LOHC Technologies.  Daniel and his team have made significant developments in this technology during the past five years and I look forward to the next stage in the development of the business”.

AP Ventures hosted its Innovation Conference in Oxford on July 9th and 10th.

The event attracted good interest with over 45 attendees from portfolio companies, corporates, investors and industry experts. The group reflected on the future trends in the fields of plastic waste, sustainable energy transition, urbanisation, energy storage and mobility and what those could look like in the next 5 years. 

AP Ventures also welcomed clean tech entrepreneurs Jack Cheng, founder of EV manufacturer Nio, and Adrian Pike, founder of Anesco, who shared their experiences of building a company and their advice to making a venture succesful. Then, the group discussed in details the journey of a product from idea origination to execution as well as the implications of impact investing.

The event concluded on a workshop adressing a sector many AP Ventures portoflio companies work in - the hydrogen industry. The workshop gathered both start-ups and industrials in the field of hydrogen and discussed challenges and opportunities in this space. Takeaways included the importance of partnerhsips and access to capital. 

AP Ventures welcomes the Mirai Creation Fund II as a new investor 

• AP Ventures invests in advanced technology companies which tackle global environmental and sustainability challenges;  

• AP Ventures has an existing portfolio of investments with a focus on the hydrogen value chain and fuel-cell electric mobility;

• The Mirai Creation Fund II joins Anglo American Platinum, Mitsubishi Corporation and The Public Investment Corporation as an investor in AP Ventures. 

London, United Kingdom, 9 July 2019 - AP Ventures today announces that the Mirai Creation Fund II (Mirai Creation Fund) has become a Limited Partner in AP Ventures Fund II. 

AP Ventures investment strategy is focused on companies developing technologies in the hydrogen value chain, fuel-cell electric mobility and energy storage markets which are dependent upon the high-performance characteristics of Platinum Group Metals. 

There is considerable common interest between AP Ventures and the Mirai Creation Fund, backed by Toyota Motor Corporation as a key limited partner, which focuses on investing in businesses which are integral to promoting a hydrogen-based economy. 

In welcoming the Mirai Creation Fund as our fourth Limited Partner, AP Ventures and its portfolio companies look forward to benefitting from working with a partner which has similar investment themes and a complementary global investment portfolio. AP Ventures has an exceptionally strong group of investors represented by Anglo American Platinum with its position in the Platinum Group Metal markets, the South African Public Investment Corporation (PIC) with strong experience of global investment, and Mitsubishi Corporation which brings significant industrial scope and a commitment to develop new strategic activities.

Commenting on the investment by the Mirai Creation Fund, Andrew Hinkly, Managing Partner, AP Ventures said: 

“We are delighted to welcome the Mirai Creation Fund as an investor in Fund II. We are excited by the opportunity to work with a team with such an established track record in the market place, I see much value in this partnership. Our strategic investors’ expertise together with our experience and industry network allows us to provide our portfolio companies with a unique combination of investment and development opportunities. In addition, this partnership is invaluable as we assess our strong pipeline of new opportunities for Fund II.” 

Commenting on today’s announcement Masatoshi Fukami, Representative Director, Executive Deputy President, for the Mirai Creation Fund said: 

“In today’s environmentally-challenged society, it is essential to identify and nurture advanced technologies that address our global environmental and sustainable issues. Working closely together with AP Ventures and the Limited Partners, we hope to contribute towards the development of an innovative hydrogen society.”

Contact

AP Ventures LLP Investor relations 

fund@apventuresllp.com

About AP Ventures 

AP Ventures is a venture capital fund headquartered in London. The Fund operates a global mandate to invest in pioneering new technologies and businesses which solve global challenges such as renewable energy integration, resource scarcity and a growing population. 

Focus areas include: the hydrogen value chain; fuel-cell electric mobility; energy storage platforms; water treatment solutions; sensors; durable electronics; and biomedical devices. 

The existing portfolio includes investments in Altergy Systems, Food Freshness Technology Holdings, ERGOSUP, Greyrock Energy, High-Yield Energy Technologies, Hydrogenious Technologies and United Hydrogen Group. All these companies either utilise or enable the use of Platinum Group Metals (PGMs). 

AP Ventures is led by Andrew Hinkly (Managing Partner) and Kevin Eggers (Partner). Investors include Anglo-American Platinum, the Mirai Creation Fund, Mitsubishi Corporation and The Public Investment Corporation.

More info: www.apventuresllp.com 

About Mirai Creation Fund I and Mirai Creation Fund II

The Mirai Creation Fund I began operations in November 2015 with financing amounting to roughly JPY13.5 billion from three companies: Toyota Motor Corporation, Sumitomo Mitsui Banking Corporation, and SPARX, the Fund's general partner. Ultimately, the Fund received contributions from 20 companies, including the above three. Seeing intelligent technologies, robotics, and technologies that promote a hydrogen economy as core technologies of the future, Fund I has invested in approximately 50 companies and projects from the US, the UK, Israel, Singapore, and Japan that possess innovative technologies in these fields. In H2 2018, SPARX began managing the Mirai Creation Fund II, which targets the three existing Mirai Creation fields, along with the two additional domains of electrification and new materials. As of April 30, 2019, the combined AUM for Funds Ⅰ(one) and Ⅱ(two) are 109.3 billion.

Mirai Creation investment track record: https://mirai.sparx.co.jp/investment/

About SPARX Group

SPARX Group is one of the largest independent asset management groups in Asia with the vision: "To become the most trusted and respected investment company in the world". SPARX Group’s long-term goal is to become the “Center for Asia Investment Intelligence.” We have worked to contribute to society by developing its core investment business model and growing its client's assets through an innovative and cutting-edge investment style.

http://www.sparxgroup.com/

Andrew Hinkly, Managing Partner of AP Ventures, participates in the Hydrogen Council G20 Investor Forum, in Karuizawa, Japan

AP Ventures participated, through its managing partner Andrew Hinkly, in the Hydrogen Council G20 Investor Forum, which took place in June 2019 in Karuizawa, Japan. This event marked the start of the 2019 G20 Summit in Japan and focused on ways to solve the biggest issues facing the international energy community. At a time when hydrogen technologies are gaining unprecedented momentum and support from governments and industry, hydrogen was on the agenda for several ministerial-level sessions.

The Hydrogen Council hosted a forum where industry, investors and government officials discussed the innovative financing schemes necessary to increase the development and deployment of real-world hydrogen projects around the globe. This event brought together leaders of transport, energy and industry multinationals, investors and policy-makers to discuss existing flagship projects and how to tackle the existing bottlenecks that prevent large scale investment. Collaboration was the recurring theme throughout the week end, with the common objective of unlocking mass markets for hydrogen technologies. 

For more information, consult http://hydrogencouncil.com/g20-in-japan-hydrogen-takes-centre-stage/

A key step in the development of the French start-up: ERGOSUP inaugurates its first compact H2 production and storage station at Lyon 1 University on June 19th.

After two years of R&D, ERGOSUP begins a new phase of its development with the commercialisation of hydrogen stations based on its unique technology electrolysing water at very high pressure. 

Named HyRiS Lab, it is an ideal solution to produce the small quantities of hydrogen required within a university laboratory - for teachers, researchers and students. The system will be used starting September 2019. 

With the trademarked HyRis Lab we are taking our first steps in the market by addressing the hydrogen needs of both university and industrial laboratories. It is the first product in our range of integrated hydrogen production and storage stations. The University of Lyon will be the first laboratory to produce its hydrogen thanks to our innovation! With a production capacity of 100 bar of 0.7 to 4 kg per week, it meets the specific requirements of laboratories using hydrogen for their work.

HyRiS Lab brings numerous advantages in terms of logistics, cost and security when compared with traditional solutions currently used. For the ERGOSUP team, which is fully committed to the development of these decentralized and low-carbon energy solutions, this is a key step, since we are moving from R & D to implementation in real-life conditions.”, explains Lucile Voiron, Deputy Chief Executive Officer of ERGOSUP.

HyRiS Lab relies on the patented high-pressure electrolysis production and storage technology developed by ERGOSUP. After the prototyping phase validated and tested at the end of 2018, the solution entered the industrialization and production phase at the beginning of 2019. The production of a series of five new machines has started with the goal of introducing them into the market by the end of 2019.

AP Ventures announces a follow-on investment in Greyrock Energy, Inc. (Greyrock), a global leader in small scale gas-to-liquids (GTL) technology. Greyrock's systems are designed to transform a variety of gas resources (including natural gas, flare gas, bio-gas, natural gas liquids, and other feedstocks) into premium transportation fuels.

Greyrock’s small GTL systems provide a solution to the flaring of associated natural gas.   The Global Gas Flaring Reduction Partnership, a World Bank initiative, notes that billions of cubic meters of natural gas are flared annually at oil production sites, wasting valuable energy resources and contributing to climate change by releasing millions of tons of CO2 into the atmosphere. 

Commenting on the investment Andrew Hinkly, Managing Partner AP Ventures said, “I’m delighted with the progress made to commercialize the Greyrock technology since our original investment in Greyrock.  The number of opportunities to develop new commercial projects using Greyrock Technology is rapidly expanding with four projects in various stages of construction and start-up.   This additional investment supports Greyrock’s continued growth and development at an exciting time for the company and the industry.” 

“AP Ventures ongoing investment represents their confidence in Greyrock’s  proprietary technology,” said Robert Schuetzle, CEO of Greyrock, “We are working together to advance Greyrock’s core business while providing solutions to address the significant problem of flared natural gas throughout the world.” 

Greyrock high value fuels are cleaner burning than similar petroleum derived fuels and when blended with traditional fuels can improve vehicular emissions profile without any corresponding change in existing infrastructure.  Additionally, Greyrock’s systems may be deployed in remote oil fields and may be configured to produce high-purity hydrogen as a by-product.  This alternative source for hydrogen is a valuable tool to address the growing demand from fuel-cell electric vehicles and offers strong synergies with AP Ventures’ other portfolio companies which span the hydrogen value chain. 

About AP Ventures

AP Ventures is a venture capital firm headquartered in London. The Fund is dedicated to investing in advanced technology companies utilising the unique high-performance characteristics of Platinum Group Metals (PGMs). The Fund operates a global mandate to invest in pioneering new technologies and businesses which solve global challenges such as renewable energy integration, resource scarcity and a growing population. This includes: hydrogen infrastructure; fuel-cell electric mobility; energy storage platforms; water treatment solutions; sensors; durable electronics; and biomedical devices.

The existing Fund I portfolio includes investments in Altergy Systems, Food Freshness Technology Holdings, Greyrock Energy, High-Yield Energy Technologies, Hydrogenious Technologies and United Hydrogen Group.

About Greyrock

Greyrock has developed its state of the art Direct Fuel Production™ technology, enabling production of clean liquid fuels from a variety of gas resources, including flare gas, bio-gas, natural gas, and natural gas liquids.   Greyrock systems enables its customers to solve key environmental and energy challenges.  For more information, please visit http://www.greyrock.com.    http://www.FlaretoFuels.com

AP Ventures hosts a workshop about the role of Venture Capital in the rise of a hydrogen-powered economy for the Hydrogen Council 

AP Ventures was invited by the Hydrogen Council Finance project team (“Hydrogen Council FPT”) to facilitate a workshop on the role venture capital can and should play in the scale-up of the Hydrogen economy. The FPT is a subset of the Hydrogen Council, focused on identifying innovative approaches to fund the scale-up of hydrogen solutions. Among the many instruments at its disposal, the Hydrogen Council FPT is exploring the value venture capital can bring. 

In this context, the Hydrogen Council FPT invited AP Ventures to facilitate a workshop around the role of venture capital in financing hydrogen powered technologies – in particular AP Ventures was asked to facilitate a discussion on how venture capital can be directed to unlock the technological constraints within the value chain and, by extension, the sector.

During the workshop the Hydrogen Council FPT members were invited to collectively answer the following question – what role should the Hydrogen Council play in attracting more venture capital to the hydrogen sector?  

Answers revealed the need for a platform both to channel the Hydrogen Council members’ investment in Hydrogen and to raise awareness about hydrogen as the energy vector of the future. The participants proposed specific actions to catalyze this effort, including creating a forum where innovative start-ups, large corporates and policy makers can create specific partnerships to bring revolutionary hydrogen technology into the mainstream

ERGOSUP raises €11 million to deploy its green hydrogen production and storage infrastructure

ERGOSUP develops hydrogen infrastructures based on its unique and patented technology of direct electrolysis of water under very high pressure. This integrated, competitive and secure system meets the strongly growing need for carbon-free hydrogen, for both “clean mobility” and low-carbon industrial gas applications.

After a first round of €2.7 million in 2015, the French start-up raised €11 million this year from the PSIM Fund (Major Innovation Support Programme) managed by Bpifrance as part of the Future Investments Programme, AP Ventures, Kouros and Normandie Participations, as well as its long-standing shareholders Air Liquide Venture Capital (ALIAD), Demeter Ventures, GO CAPITAL and Arkéa Capital. Its near term goal are to industrialise the production of its small series electrolysers, develop its marketing function and strengthen its team with the recruitment of ten new employees.

Whereas today 95% of hydrogen is produced from fossil fuels, and less than 0.01% by electrolysis of water, the goal set by the Hulot plan of June 2018 is to achieve 10% carbon-free hydrogen by 2023, and 40% by 2028. This French policy is aligned with an ambitious international agenda for hydrogen where today there is strong support from industrial partners’ investments and commitments from local governments, which have resulted in a host of hydrogen technologies being deployed.

ERGOSUP contributes to this growth thanks to its unique and patented know-how regarding hydrogen production. This allows it to respond to user expectations and target a privileged position, where very few actors are present today. The start-up proposes supplying green hydrogen, which is competitive and safe, closer to end-users, and with a capacity really adapted to needs.

The first markets targeted are “zero emissions” transport with different types of hydrogen-electric vehicles (drones, handling equipment, bicycles, cars, etc.) and the on-site production of industrial gas instead of receiving supplies by tank truck.

In 2015, a first round of funds amounting to €2.7 million helped to strengthen the teams, complete the technology development phase and deploy a prototype and demonstration units. The €11 million capital increase at the beginning of the year will enable the launch of small series production, the development of marketing, plus the recruitment of sales personnel, project managers and technicians.

This funding results from shareholders’ reinvestments, including Air Liquide Venture Capital (ALIAD), Demeter 3 start-up fund managed by Demeter Ventures, GO CAPITAL start-up fund managed by GO CAPITAL and Arkéa Capital Investissement, managed by Arkéa Capital, a subsidiary of the Arkéa group.

To these "historic" investors are added four new leading players: AP Ventures, the PSIM fund (Major Innovation Support Programme) managed by Bpifrance as part of the Investments for the Future Programme, Normandie Participations and Kouros.

"I am very proud of the renewed confidence of our historic shareholders, one of which is a member of the Hydrogen Council. But also, there is the arrival of new international, national and regional funds, again with significant support from the Normandy Region. This operation, which is part of an impressive rise in the use of hydrogen, consolidates our development strategy. Thus, we will be able to accelerate the deployment of our integrated and decentralised sites and reinforce our teams to launch our industrialisation and stimulate commercialisation", explains Patrick PAILLERE, CEO of ERGOSUP.

"Bpifrance has been working with ERGOSUP for almost five years now. Winner of the first phase of the World Innovation Competition (CMI) in 2014, the company was selected for Phase 2 in 2015. The sum of grants and repayable advances received has allowed it to finance research and development the first products. Its qualification for Phase 3 of the CMI last year made it eligible for the PSIM fund (Major Innovation Support Programme), which we manage under the Future Investments Programme. We have been convinced by the relevance of the technology, which allows us to develop solutions adapted to the mobility of tomorrow”, states Laura PANQUET, Senior Investment Officer at Bpifrance.

“I am delighted to announce our investment in ERGOSUP which adds another company to our existing portfolio of assets across the hydrogen value chain. I am very impressed by both ERGOSUP’s team and its unique technology which provides an integrated low-cost solution for distributed green hydrogen. As a board member, I look forward to working with the ERGOSUP; sharing AP Venture’s expertise, experience and network within the global hydrogen economy to create further value for the Company”, says Andrew Hinkly, Managing Partner, AP Ventures.

“ERGOSUP is perfectly in line with developments in the energy, mobility and smart city sectors by proposing a unique solution for the decentralized production of green hydrogen under pressure. The flexibility of this technology allows ERGOSUP to address a multitude of markets ranging from hydrogen mobility, to industrial/laboratory applications to the supply of isolated sites. We are pleased to continue the support of ERGOSUP in its new growth phase and pleased to see that the hydrogen sector draws back financial and corporate investors”, explains Olivier BORDELANNE, Partner in DEMETER’s team.

“The development of the hydrogen value chain is an integral part of the Air Liquide Group’s innovation strategy. ERGOSUP is a remarkable member of this project. Its high-pressure electrolysis technology opens applications that will be the norm for carbon-free mobility and decentralised management of hydrogen-energy. It is the technical and industrial know-how of the ERGOSUP team, combined with the Air Liquide Group’s international expertise in the hydrogen market, which explains the renewed confidence of ALIAD Venture Capital in support of this young company” says Matthieu EYRIES, Managing Director, ALIAD Venture Capital.

“The various steps taken by ERGOSUP since GO CAPITAL’s first investment, the launch in 2019 of the first hydrogen generator model, the HyRiS Lab, and the prospects opened by the expansion of the range, in the short term, to other applications (drones, mobility) convinced GO CAPITAL to participate in this new fundraising. GO CAPITAL, with its GO CAPITAL priming funds I and II, significantly contributes to financing young innovative companies involved in the development of technologies for energy transition: ERGOSUP is one of its treasures”, states Bruno GUICHEUX, Director of Investment at GO CAPITAL.

“We are very proud to renew our support for ERGOSUP and participate in this new fundraising. We have been supporting its leaders and the team since 2015 in the development of this innovative and competitive carbon-free hydrogen production technology, fully in line with the recent measures taken by the government for the country’s energy transition. This new investment by Arkéa Capital is part of a rational approach to supporting regional companies with high potential”, says Sylvie LE BRAS, Investment Officer at Arkéa Capital.

“Normandie Participations, as an investment fund in the Normandy Region, is pleased to support the development of ERGOSUP. The company has developed a relevant offer based on a good patent portfolio. Alongside our co-investors, we support the company’s ambitious development plan, which has the necessary qualities to be a leader in a fast- growing market, both in France and abroad”, comments John GUINET, Investment Manager at Normandie Participations.

“Thanks to its unique high-pressure electrolysis technology, ERGOSUP offers a viable solution, which is as close as possible to hydrogen consumers, and contributes to accelerating the development of green hydrogen. For Kouros, an industrial group and investor committed to the fight against global warming, ERGOSUP is a privileged technological partner for the deployment of systems to rebuild a 100% carbon-free energy system”, says Florent BERGERET, Director of Kouros Investments.

About ERGOSUP

Created in 2010, ERGOSUP develops an innovative and patented process for the direct production of hydrogen by electrolysis at very high pressure and storage. Markets targeted are supplying carbon-free hydrogen for industrial applications, hydrogen transport infrastructures, and massive stationary energy storage systems. On the strength of its success, the start-up was awarded the prize for the 2014, 2015 and 2017 World Innovation Competition and the CES 2019 Innovation Award.

ERGOSUP is located in Malataverne (Drôme) and Cherbourg (Manche). It now has 20 employees.

In 2015, it launched a first financing plan and raised €2.7 million. It aims for a turnover of €1 million in 2019 and €6 million in 2020.

About Bpifrance

Bpifrance is the French national investment bank: it finances businesses – at every stage of their development – through loans, guarantees, equity investments and export insurances. Bpifrance also provides extrafinancial services (training, consultancy, etc.). to help entrepreneurs meet their challenges (innovation, export, etc.).

For more information, please visit: www.bpifrance.fr and presse.bpifrance.fr Follow us on Twitter: @Bpifrance - @BpifrancePresse

About the Programme of Investments for the Future (PIA):

The French Secretary general for investment (SGPI) is in charge, under the direct authority of the Prime Minister, to ensure the consistency of the State’s innovation investment policy.

Since 2010, the Secretary general is in charge of implementing the “French Strategic Investment Program” of 57B€ (PIA). It’s also supervising the “Major Investment plan 2018-2022” (57B€), decided by President Macron in September 2017:

• Major Investment Plan: launched in September 2017 for a five-year period. 57 billion euros, to support structural reforms and face the new challenges in modernizing our economy;
• France’s Strategic Investment Program: since 2010, 57 billion euros to provide our economy with long-term growth prospects through the financing of innovative projects.

In addition, the SGPI leads a public investment evaluation mission and is supporting the implementation in France of the “Juncker Plan”, European Investment Plan, led by the European Investment Bank.

Twitter: @SGPI_avenir

About AP Ventures

AP Ventures is a venture capital firm headquartered in London. The Fund is dedicated to investing in advanced technology companies utilising the unique high-performance characteristics of Platinum Group Metals (PGMs). The Fund operates a global mandate to invest in pioneering new technologies and businesses which solve global challenges such as renewable energy integration, resource scarcity and a growing population. This includes: hydrogen infrastructure; fuel-cell electric mobility; energy storage platforms; water treatment solutions; sensors; durable electronics; and biomedical devices.

The existing Fund I portfolio includes investments in Altergy Systems, Food Freshness Technology Holdings, Greyrock Energy, High-Yield Energy Technologies, Hydrogenious Technologies and United Hydrogen Group.

www.apventuresllp.com

About Demeter

Demeter is an independent management company specializing in the management of private equity funds dedicated to the environment (water, waste, air, soil) and energy transition sectors (renewable energy, energy efficiency, clean transportation). Demeter manages €1billion around 3 poles covering the entire value chain of private equity: Innovation (start-up financing), Growth Capital (SMEs financing) and Infrastructure (projects financing). Demeter has already invested in more than 130 companies and infrastructure projects in the environmental and energy transition sectors. Demeter also enjoys a strong European presence through its offices in France (Paris – Grenoble – Metz), Spain (Madrid) and Germany (Munster), as well as its partnerships with investment funds Cycle Capital in Canada and eCapital in Germany, giving it a real international dimension.

The Demeter 3 Amorçage fund, investing in Ergosup, was raised with the support of the National Seed Fund (NSF)

managed by Bpifrance Investment in the framework of the Program Investment of Future and with the support of the European Investment fund (EIF) through the framework Program of the European Union for the Competitiveness and the Innovation (CIP).

About ALIAD

Created in 2013, Air Liquide Venture Capital (ALIAD) is the Air Liquide Group’s venture capital investor. ALIAD's mission is to take minority stakes in innovative technology start-ups. ALIAD's investment strategy targets three sectors concerned with major societal changes: energy transition, health and digital. ALIAD supports start-ups developing technologies of the future. This is done by setting up technological and/or business agreements between these young enterprises and entities within the Group.

For more information: https://www.airliquide.com/group/aliad-venture-capital 

About GO CAPITAL

GO CAPITAL manages €200 million, and finances innovative companies in West and Central France, in various technology sectors: Energy, Digital, Health and Services for Industry. Through several funds (GO CAPITAL Amorçage and Ouest Ventures) GO CAPITAL invests in young innovative enterprises. Funds are available to help them accelerate their development from creation to international deployment. Today, GO CAPITAL has 47 companies in its portfolio. www.gocapital.fr

About Arkéa Capital

As a minority shareholder, Arkéa Capital supports companies from start-ups to mid-size companies at all stages of their development, by maintaining the independence of the decision-making centres. Arkéa Capital is a subsidiary of Arkéa group dedicated to private equity activities. It has been active for more than 30 years in all sectors of activity throughout France, thanks to six regional offices and a team of experts. It supports companies and their managers over the long term through five complementary investment vehicles: Arkéa Capital Investissement, Arkéa Capital Partenaire, Arkéa Capital Managers, West Web Valley and We Positive Invest. Arkéa Capital has stakes in nearly a hundred companies and currently manages equity capital of approximately €1 billion.

For more information: www.arkea-capital.com

About Normandie Participations

Flexible and responsive, Normandie Participations shares in the region’s vitality alongside other local finance organisations. On a principle of co-investment with private funders, Normandie Participations, with capital derived 100% from the Normandy Region, targets at enterprises in the fields of start-up, innovation, development, creation, transmission and recovery. The regional fund has allocated 38 participations; these amount to €27 million of investments in just over two years. Normandie Participations also manages Normandie Horizon, a €40 million regional equity loan fund, and sponsors FFWD, the regional acceleration programme for growth companies.

About Kouros

As an actor in the fight against global warming, the Kouros Group works on the decarbonisation of heavy transport and the production of electricity. Through its Scale-Up Programme, Kouros supports start-ups and small and medium energy enterprises in their industrialisation. A strategic dialogue between company directors and Kouros experts defines the most appropriate form to launch or accelerate the development of innovative energy enterprises through venture capital, industrial and/or commercial partnership agreements.

www.kouros-investment.com

Morrisons is set to trial a new film packaging technology developed by food tech firm It’s Fresh! to prolong the life of fresh produce. Dubbed a ‘purposeful packaging’ technology, 'Infinite' has been designed to reduce food waste in supermarkets, in the supply chain and at home.

A proprietary ‘active ingredient’ is printed directly onto existing packaging for fruit, vegetables and flowers to prolong shelf life and extend freshness and quality by absorbing the natural ripening hormone ethylene.

After three years in development, this  innovative product will soon be trialled on packs of berries in Morrisons.

According to It’s Fresh, tests have proven that Infinite is more efficient and environmentally-friendly than any alternative methods currently in use since the technology is non-invasive and can be used in packs of untreated or uncoated fruit.

Co-founder of It’s Fresh! Simon Lee said: “We are a nation of fresh fruit lovers and are used to being able to buy our favourites all year round, whatever the season. This creates huge challenges for farmers, importers and supermarkets globally to keep produce fresh in transit. There is a big debate about food packaging at the moment. The reality is that the fresh food industry does need packaging. Ours is what we would call ‘purposeful packaging’, which is genuinely helping to reduce food wastage and which will in turn reduce the amount of packaging needed overall as the produce lasts longer.”

(by Fred Searle, for Fruitnet.com, Thursday 13th December 2018)

• Mitsubishi Corporation joins Anglo American Platinum and The Public Investment Corporation as an investor in AP Ventures;
• AP Ventures invests in advanced technology companies utilising the unique high-performance characteristics of Platinum Group Metals;
• AP Ventures has a broad investment theme with a special interest in hydrogen infrastructure, fuel-cell electric mobility and energy storage.

London, United Kingdom, 12 December 2018: AP Ventures today announces that Mitsubishi Corporation has become a Limited Partner in AP Ventures Fund II.

AP Ventures is the first fund of its kind to invest in pioneering technologies and businesses that harness the unique high-performance characteristics of Platinum Group Metals (PGMs).

In welcoming Mitsubishi Corporation as our third Limited Partner AP Ventures and its portfolio companies will benefit from Mitsubishi’s significant industrial scope and its commitment to develop new strategic activities, including those related to the hydrogen economy. Together with Anglo American Platinum’s position in the precious metal markets, which provides competitive advantage for our companies, and the extensive fund management expertise of the South African Public Investment Corporation (PIC), AP Ventures has an exceptionally strong and complementary group of investors.

Commenting on the investment by Mitsubishi Corporation, Andrew Hinkly, Managing Partner, AP Ventures said:

“We are delighted to welcome Mitsubishi Corporation as an investor in Fund II. Even prior to the formal announcement we are already seeing the benefit of our relationship and look forward to developing a strong partnership between AP Ventures, Mitsubishi, Anglo American Platinum and the PIC.”

Technologies powered by PGMs are providing solutions to global challenges such as renewable energy integration, resource scarcity and a growing global population. AP Ventures is the only fund of its kind offering investors access to these innovative, fast-growing companies built on the unique properties of PGMs. Our experience and industry network combined with the support of our strategic investors, means we have a high performing portfolio of existing investments as well as a strong pipeline of new opportunities.”

Commenting on today’s announcement Yusaku Yukita, GM for Precious Metals, Mineral Resources Trading Division, Mitsubishi Corporation said:

“What AP Ventures has achieved so far, and sets out to achieve in future, is unique and very valuable to the industry. We believe that precious metals will play an instrumental role in providing solutions to the challenges our global society faces. To realise the full potential of these metals in addressing these challenges, efforts have to be orchestrated amongst the various industry players. Working closely together with AP Ventures and the Limited Partners, and by bringing the diverse capabilities of Mitsubishi Corporation, we hope to nurture the growth of innovative precious metals technologies that will help improve lives and the society we live in.”

Three founders of Hydrogenious Technologies GmbH: Prof. Wolfgang Arlt; Prof. Peter   Wasserscheid; and Dr. Daniel Teichmann have been nominated for the “Deutscher Zukunftspreis”, the German President’s Award for Innovation in Science and Technology 2018. The nomination recognizes the ground-breaking research and development achievements of the scientists in the field of hydrogen storage and its successful commercial implementation as an important contributor to a future sustainable energy system. The “Deutscher Zukunftspreis” will be awarded by the President of the Federal Republic of Germany, Dr. Frank-Walter Steinmeier, in Berlin on November 28th, 2018.

Andrew Hinkly attended the International Hydrogen Fuel Cell Vehicle Congress 2018 in Rugao, China, and chaired the Market and Capital Investment session co-organised by Anglo American and the China Society of Automotive Engineers (SAE). 

The session gathered innovative start-ups, mid-sized companies and investors and explored the solutions and partnerships required to accelerate the adoption of a hydrogen infrastructure in China. 

Recalling the ambitious target set by the SAE for the penetration of 1 million fuel cell electric vehicles in China by 2030, Andrew Hinkly recognised that “what happens in China influences the rest of the world”. He also gave insights on investing in hHydrogen technologies, targeting the constraints which have the potential to unlock the whole hydrogen value chain. He highlighted that adopting this approach in the Chinese ecosystem would have a magnifying effect and recognised the opportunity for an investment firm such as AP Ventures, the venture capital fund he launched in July 2018. 

Andrew Hinkly, the managing Partner at AP Ventures, gave insights on investing in PGM-powered technologies at New York Platinum Week. 

In a 40-minute presentation followed by a 20-minute Q&A session, Andrew highlighted how PGMs power numerous advanced technologies vital to solving global challenges, such as sustainable energy integration, growing resource scarcity and rapidly changing demographics. He explained how industries utilising PGM-powered technologies have a competitive advantage which drives superior returns and underpins the investment opportunity. The Fund he launched with his partner Kevin Eggers in July 2018, AP Ventures, is dedicated to finding these innovative technologies and bringing them to the market. 

• AP Ventures opens to new investment, attracting US$200 million in commitments from cornerstone investors, Anglo American Platinum and Public Investment Corporation 
• An independent fund has been established, supported by the Public Investment Corporation’s mining investment strategy, and the successful track record of the Anglo American Platinum PGM Investment Programme 
• AP Ventures invests in advanced technology companies whose products utilise the unique high-performance characteristics of Platinum Group Metals
• Sectors for investment include hydrogen infrastructure, fuel-cell electric mobility, energy storage platforms and water treatment solutions

London, United Kingdom, 17 July 2018: AP Ventures today announces its launch as an independent venture capital fund to invest in applications for Platinum Group Metals (PGMs). Anglo American Platinum and South Africa’s Public Investment Corporation (PIC), as cornerstone investors, have each committed US$100 million to AP Ventures.

The newly created AP Ventures is the first fund of its kind investing in pioneering technologies and businesses harnessing the unique high performance characteristics of PGMs.

Anglo American Platinum is the world’s leading primary producer of PGMs and is expected to continue to provide AP Ventures with the benefit of industry expertise, market knowledge and access to international networks. The PIC is one of Africa’s largest investment managers, with assets totalling over US$160 billion, and through its extensive investment research expertise brings unrivalled insight to AP Ventures and its portfolio companies. 

Commenting at the launch of AP Ventures, Andrew Hinkly, Managing Partner, said: 

“The world needs solutions to global challenges such as renewable energy integration, resource scarcity and a growing global population. Technologies powered by PGMs are providing solutions to these problems in areas such as hydrogen infrastructure, fuel-cell electric mobility, water purification and medical devices. 

AP Ventures is the only fund of its kind offering investors access to these innovative, fast-growing companies built on the unique properties of PGMs. Our experience and industry network, combined with the support of cornerstone investors Anglo American Platinum and PIC, means we have a high performing portfolio of existing investments as well as a strong pipeline of new opportunities.”  

AP Ventures will operate a global mandate investing in companies that develop patentable technologies using PGMs.

The Fund will invest thematically in sectors which use PGMs to address global challenges such as renewable energy integration, resource scarcity and a growing population. This includes: hydrogen infrastructure; fuel-cell electric mobility; energy storage platforms; water purification; sensors; durable electronics; and medical devices. 

AP Ventures is led by a specialist global investment team with proven expertise and a successful track record. The team previously formed part of Anglo American Platinum’s PGM Investment Programme which was first established in 2014. The Programme made US$60 million of early stage and growth capital investments. The PIC has been instrumental in ensuring AP Venture’s fund structure has the appropriate governance in place to attract ongoing funding.

Commenting on today’s announcement, Dr Daniel Matjila, Chief Executive Officer, Public Investment Corporation, said: 

“Through our investment in the independent AP Ventures, the PIC is funding technology innovation and furthering demand for PGMs, which will ensure the industry has a sustainable future. As a leading global institutional investor, this investment further demonstrates our support of the United Nations Sustainable Development Goals. My view is this investment will stimulate and sustain the demand for PGMs in the long term, benefitting our clients and preserving the long term mineral wealth for all South Africans. In addition, the potential for localisation of these technologies in South Africa, contributes to sustaining jobs in the PGM mining sector and planning for creation of jobs in the manufacturing sectors. The PIC is already a significant investor in the platinum mining industry and regards the long-term sustainability of the industry as being critical to the long-term returns of its portfolios.”

Chris Griffith, CEO of Anglo American Platinum, added: 

“The launch of AP Ventures is an exciting new development which will support the growth of PGM technologies and increase PGM demand. Developing the market for PGMs is a strategic priority for Anglo American Platinum and this investment with AP Ventures is firmly aligned to that priority. Having enjoyed success and built a strong track record as part of Anglo American Platinum’s PGM Investment Programme, we have taken the decision to separate the fund’s activities into an independent structure that will attract additional outside investment and allow AP Ventures to increase the scale of its activities.”  

Headquartered in London, AP Ventures is committed to opening a further office in South Africa and to raise additional capital from other investors. 

As part of Anglo American Platinum’s capital commitment to the independent Fund it will transfer the seed portfolio within its PGM Investment Programme to AP Ventures. 

The existing portfolio includes investments in Altergy Systems, Food Freshness Technology Holdings, Greyrock Energy, HyET Holdings, Hydrogenius Technologies, Primus Power and United Hydrogen Group.

Anglo American plans to spin out its internal venture capital unit to raise funds to invest in hydrogen technologies such as fuel cells, as the world’s biggest producer of platinum seeks to boost demand for the metal.

Chris Griffith, the chief executive of Anglo American’s platinum division, told the Financial Times the spin-out will allow the new company to access outside investors as it looks to take stakes in emerging hydrogen start-ups that could push the adoption of fuel cell cars over battery-powered electric cars. “It’s about growing demand,” Mr Griffith said. “We believe we can do so much more with it with partners alongside us.”

Anglo American’s internal fund has made around $80m of investments over the past six years. Last month it invested in a Dutch hydrogen start-up, High-Yield Energy Technologies, along with oil company Shell. It made its first investment in 2013, with a $4m stake in Canadian fuel cell provider Ballard Power Systems.

Platinum miners are looking to hydrogen fuel cells as the next source of demand for the metal, as diesel cars that use platinum in their catalysts face an uncertain future due to growing concerns about air pollution. Platinum prices are trading close to their lowest levels in 10 years. Autocatalysts have accounted for between 37 per cent to 41 per cent of total platinum demand in the last five years, according to the World Platinum Investment Council. But the market share of diesel cars in Europe is falling following the emissions scandal involving Volkswagen. Gasoline cars also face growing competition from electric cars. The share of diesel cars in Europe is set to fall to 46 per cent this year, from 48 per cent three years ago, according to catalyst maker Johnson Matthey. In contrast hydrogen could power more than 400m cars, 15m to 20m trucks, and 5m buses by mid-century, according to the Hydrogen Council, an industry group of 39 companies, including Anglo American. Fuel cells combine hydrogen with oxygen to create an electric current. Platinum is used as a catalyst, and to lower the operating temperature of the fuel cell. The most popular fuel cell car is the Toyota Mirai. Demand for platinum in fuel cell electric cars could rise to 1m ounces by 2030, Mr Griffith said. Last year, autocatalyst demand for platinum in mostly diesel cars and trucks totalled around 3.3m ounces. That’s likely to be driven by China, which is promoting the use of hydrogen technology in trucks and buses, according to Mr Griffith. “At the moment the big game in town is China,” he said. “They’ve put in place very serious incentives. It’s just phenomenal.”

Read the full article here: 

https://www.ft.com/content/b7cc1554-582f-11e8-b8b2-d6ceb45fa9d0