Why we invested in Aclarity

There are pain points and then there are PAIN POINTS. Per- and Polyfluorinated Alkylated Substances (PFAS) are more than just a menace to society. They are an incredibly harmful class of chemicals to human health and nearly impossible to destroy, hence the nickname “Forever Chemicals.” Rarely do we come across a pain point as big as this in the water sector. Julie Bliss Mullen and the Aclarity team have not only come up with a solution to a seemingly intractable problem, they’re doing so extremely cost-effectively. Aclarity develops and deploys electrochemical water treatment systems that cost-effectively destroy contaminants including PFOA/PFAS, cyanide, VOCs, and nitrogen. They save customers money, time, operational complexity and reduce their liabilities. 

We’re thrilled to announce our investment in Aclarity. Here’s why we did it.

Depth of Pain

The problem Aclarity is tackling isn’t a hair-on-fire problem. It’s more like a dark bottomless pit with no end in sight. The water sector’s very own pit of despair. PFAS, cyanide, ammonia and VOC’s are infamous contaminants plaguing drinking water and arable land. These contaminants are not only harmful to human health, due to the history of industrialization, they are all over the place. Although many filtration techniques exist, all of them push the contaminants into landfills or have them incinerated, processes that leave PFAS mostly dead but not all dead. The now incinerated PFAS go air-borne and can once again deposit in soil and air. PFAS regulation is spreading rapidly and is already stringent in states such as New York and Michigan. But the majority of the pain is felt by industrial users who need to dispose of the contaminants, but can’t because PFAS is so hard to destroy. With fewer and fewer places willing to accept PFAS contaminated materials, including Activated Carbon, which is used to remove PFAS, the options are becoming even more limited. Aclarity removes the need to dispose of PFAS and other notorious harmful chemicals by destroying them altogether. With the PFAS Regulation Act on the horizon, Aclarity is soon to be an immensely competitive offer. 

You Did What with How Much?

Efficiency is the name of the game when it comes to Aclarity. The company has completed over 15 customer pilots and is able to destroy PFAS compounds to below detection with <10% byproduct formation. No other process is achieving this in the field. But Aclarity didn’t just beat all-time records. They did so on an extremely cost-effective budget. In 2019, they raised $700k in pre-seed funding and have received just over $2M in grant funding to-date. That’s a long way on not a lot. Kudos. 

Breadth of Application of the Technology

Aclarity is positioned to address MONSTER markets via their ability to treat wastewater in industrial and municipal markets. PFAS destruction alone is estimated at $30bn+ with a 40% CAGR by 2025. And not all they can do. Cyanide segments, including electroplating and road salt, are expected at $4bn, landfill leachate at $1.5bn and industrial reuse at $28bn. With the PFAS Action Act, there could be strong tailwinds for the landfill leachate market. They have a first-mover advantage in the market, and are being looked at closely by industry majors including Xylem (BIV LP) and DuPont. Their deployment partners including Heartland Technologies are industry veterans. With such demand, Julie and team will have to decide which market to target.

Team

Julie Bliss Mullen, Aclarity’s CEO and founder, started investigating the PFAS challenge eight years ago as a PhD student at the University of Massachusetts Amherst and has been working on this problem ever since. On first impression, Julie is clear, composed, and dedicated, but her real strength is her ability to seek advice and receive feedback, characteristics indicative of an unusual and highly effective leader. Julie developed the technology and she and her Chief Science Officer, Dr. Orren Schneider, are the only people who knows the formula. She has a strong staffing plan, focused on ensuring the technical team is in place, allowing Julie the freedom to focus on the commercial side. Orren is a highly technical person and a great fit to work alongside the technical production and delivery team. Ray and Jose are operational wizards, and Liz and Mike make everything come to life. When it comes to hiring, Julie has taken some early knocks, but is the better for it. We are excited to see the team Julie brings together.

Solving PFAS

PFAS is highly toxic and ubiquitous and it’s removal from the natural habitat of the world will be the work of a century. No incumbent will want to be left behind in the PFAS land grab, and Aclarity bandwidth across complex contaminants will position them well. The next 12-18 months will be crucial to establish leadership. Suez, Xylem, DuPont, De Nora, 3M, Mann & Hummel are all paying close attention and Aclarity needs to be clear about their willingness to pay for a loss-making company. The breadth of the IP suite will also be crucial. Given the size of the water market, purchasing the PFAS leader would give a new entrant a strong initial vertical to build out or improve on a position.

Julie, Orren and all the Aclarity team, thank you so much for including us on your journey.