New investor Emerald Technology Ventures has led a $US10 million ($15.2 million) Series A1 investment round in Brisbane-based environmental engineering company The Water & Carbon Group.
Switzerland-based Emerald is a climate change and sustainability-focused global venture firm that has more than €1 billion in assets under advice.
The round was supported by another new investor, US-based Ecolab Inc. (NYSE: ECL) and conversion of notes issued in prior investments from Dragonfly Enviro Capital plus additional investment from some existing shareholders.
The new capital is to be used to accelerate deployment of the company’s technology for removing toxic PFAS chemicals from wastewater.
PFAS (per- and poly- fluoroalkyl substances) have been used in products such as firefighting foam, food packaging and water-repellent fabrics. They are frequently referred to as ‘forever chemicals’ because of the time it takes them to naturally degrade. They have also been shown to bioaccumulate and pose serious health risks. Liquid draining from landfill, known as leachate, can contain significant levels of PFAS. The Water and Carbon Group’s LEEF system is designed to intercept and remove PFAS from leachate.
PFAS has been getting international attention, with increasing levels being detected in water sources across the globe. This includes levels detected in in Sydney’s drinking water catchment in June this year which, while within Australia’s drinking water guidelines, was above US safety thresholds. The US Environmental Protection Agency (EPA) has set stringent standards at four parts per trillion for the two most common PFAS compounds, PFOS and PFOA, in drinking water.
The Water and Carbon Group says it has made significant inroads into the US market during 2024. The company launched its first permanent plant in the US in July at a Pennsylvania site operated by Bethlehem Landfill Company.
Emerald investment director Julien Dillon said: “The Water and Carbon Group is bringing a critical solution to the global environmental challenge of PFAS contamination. The company’s success in Australia, and now the US, shows the scalable global potential of the LEEF system.”
Dillon is to join The Water and Carbon Group’s board following Emerald’s investment.
The first LEEF system installation at Shoal Bay, Darwin, has been operational for nearly two years and has treated around 51 million litres of leachate annually, showing the system can be effective in regions of high rainfall.
Water and Carbon Group chief executive Jim Hunter said the new capital will enable the company to fast-track its US expansion, focusing on PFAS treatment in complex wastewaters.
The Bethlehem Landfill project is already making an impact. The project has the capacity to treat 378,000 litres of leachate daily, reducing PFAS to non-detectable levels.
The US federal government is ramping up efforts to combat PFAS through initiatives such as the PFAS Strategic Roadmap and proposed enforceable limits for PFAS compounds in drinking water. These efforts are boosting demand for effective treatment options, and this is expected to flow on to other countries.
Image: A water treatment plant set up by The Water and Carbon Company.