AP Ventures closes $300m fund to back UK industrial decarbonisation startups
This article covers AP Ventures, the London-headquartered venture capital firm focused on industrial and energy technologies, and its final close of Fund III at $300m announced on 28 October 2026. The fund is intended to support Seed and Series A companies commercialising low-carbon molecules, carbon capture, circularity and advanced recycling, targeting hard-to-abate industrial sectors.
AP Ventures, the London-headquartered venture capital firm focused on industrial and energy technologies, has closed Fund III at USD 300 million in commitments. The final close, announced 28 October 2026, gives the firm fresh firepower to back early-stage companies working on low-carbon molecules, carbon capture, circularity and advanced recycling — areas seen as critical to improving industrial productivity, supply security and the resilience of energy systems.
Why it matters
Industrial deep tech has long struggled to attract the same volume of venture capital as software. AP Ventures’ USD 300 million fund signals renewed institutional appetite for capital-intensive startups that tackle hard-to-abate sectors such as chemicals, steel, aviation and heavy mobility. The fund also arrives against a backdrop of rising electricity demand, tighter supply chains for critical minerals and growing deployment of AI and automation in industrial operations — trends that increase the commercial urgency for new materials, processes and distributed energy solutions.
Fund focus and strategy
Fund III targets Seed and Series A investments and aims to support companies through commercialisation, industrial deployment and scale-up. The strategy concentrates on technologies across the production, storage, transport and end use of low-carbon molecules including hydrogen; carbon capture and utilisation; and circularity and advanced recycling. AP Ventures says it pairs technical due diligence with access to industrial networks and institutional partners.
Inside the portfolio
Since an initial close in 2024, Fund III has already backed 13 companies. The portfolio spans a range of technical approaches intended to improve efficiency, reduce supply-chain exposure and create lower-carbon industrial inputs:
- Teragen Energy: develops metal-supported solid oxide fuel cells for clean, on-site power in data centres and other critical infrastructure.
- Aether Fuels: converts industrial waste gases, biogas and waste biomass into drop-in liquid fuels, offering locally sourced options for aviation and shipping.
- CREW Carbon: uses a mineral-based process to replace conventional wastewater treatment chemicals, cutting operating costs for utilities while generating high-quality carbon removal credits.
- Rosy Soil: produces patented peat-free potting soils from biochar, reducing reliance on a finite raw material while improving plant health and sequestering carbon.
- Reclinker: applies an Electric Arc Furnace process to convert used cement into on-specification Ordinary Portland Cement, addressing cement’s embedded carbon and material circularity.
- Lydian Labs: builds modular, load-following reactors to convert electricity, water and CO2 into synthetic fuels, enabling distributed fuel production that can follow variable power supply.
- Rubi Laboratories: converts carbon dioxide into high-purity cellulose for textile fibres such as viscose and lyocell, creating a feedstock less dependent on forestry and agriculture.
Each company targets operational pain points — from onsite power reliability to feedstock security — rather than incremental product features.
Founder perspective
In the announcement, Andrew Hinkly, Founder and Managing Partner at AP Ventures, said:
This final close reflects the confidence our existing and new investors place in AP Ventures’ ability to identify and support exceptional technology companies. Strong support from returning investors, alongside new institutional partners, allows us to keep backing the technologies industry needs to operate more productively and securely, from the materials it depends on to the processes and data that run it.
In the announcement, Kevin Eggers, Founder and Partner at AP Ventures, said:
We focus on backing technically differentiated companies that solve real operational problems across the industries and value chains in which we invest. Whether improving energy efficiency, resource productivity, safety, environmental performance or supply-chain resilience, this combination of technical rigour and commercial pull is what continues to define AP Ventures’ approach.
Who’s behind the fund
AP Ventures is independent and headquartered in London, with offices in Johannesburg and San Francisco. The firm says Fund III’s USD 300 million came from a global mix of institutional investors, including sovereign wealth funds, corporates, pension funds and family offices. AP Ventures has been investing in industrial and materials-focused businesses since 2013 and positions itself as a partner for companies navigating complex technical and commercial milestones.
How it fits the market
Institutional capital flowing into industrial deep tech helps bridge the valley of death between lab-scale innovations and industrial deployment. Funds that combine long-horizon capital with sector expertise can be crucial where scale-up requires heavy equipment, regulatory navigation and industrial partnerships. AP Ventures’ portfolio choices reflect two converging market demands: cleaner industrial processes and greater supply resilience for critical materials and fuels.
The bigger picture
For founders in the UK and Europe working on industrial decarbonisation and circularity, Fund III is a reminder that there is patient capital willing to back capital-intensive, hardware- and chemistry-led businesses. That matters for national and regional ambitions to decarbonise heavy industry and secure strategic supply chains while building exportable technologies. As policymakers and corporates pursue net-zero targets, funds like AP Ventures may play a practical role in moving innovations from pilot to plant.
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