A Birmingham company which has developed a nature-based wastewater treatment solution has raised a further £2.3m to help it enhance its technology.
The latest investment in I-Phyc – which featured on our EnviroTech 50 ranking – was headed up by Mellby Gård AB, a privately-owned Swedish company targeting investment in promising water technologies.
It also included the MEIF Proof of Concept & Early Stage Fund, which is managed by Mercia and part of the Midlands Engine Investment Fund, and private investors.
I-Phyc’s technology is already in operation at water treatment plants at Weston-super-Mare and Broadwindsor in Dorset, and will be used in a new plant at Croxton Kerrial in Leicestershire.
The company has seen a major increase in enquiries in the past year and is now in discussions with all the major UK water companies as well as operators in the US and Scandinavia.
The latest investment will allow I-Phyc to enhance its technology, bring new sites on board and firmly establish its position as the market leader in chemical-free water treatment systems.
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The company, which also has a laboratory in Bristol, currently employs 15 staff and is planning to create five new jobs in the six months ahead.
Karl Wills, executive chair at I-Phyc, said: “We are delighted to receive further backing from our existing investors, other new investors and welcome aboard a significant new investor in the form of the Mellby Gård AB.
“Mellby Gård AB, through its wholly owned subsidiary Feralco AB, is a leader in the field of water treatment systems. Its support is a real testament to the strength of I-Phyc’s technology. This latest investment round will not only provide funds for expansion, but also greatly enhance our credibility within the industry.”
Mikael Helmerson, deputy CEO, of Mellby Gård AB, added: “We see I-Phyc as having an exciting role to play within the ever growing circular economy in which management of water resources will be an important contributor.”
I-Phyc’s system uses algae to remove phosphorus, ammonia and other contaminants, while locking away carbon and creating sustainable by-products from the biomass produced.
It has the potential to significantly improve water quality in rivers and streams and enable water companies to meet stricter limits on pollutants which is difficult to achieve economically using current systems.
The latest funding round is the third by Mercia and MEIF, which initially invested in I-Phyc in 2019.
Kiran Mehta, Investment Manager at Mercia, said: “Our previous investments helped I-Phyc to develop and roll out its technology and it is now attracting huge interest within the industry.
“With water companies trying to meet ever increasing water quality standards and challenging carbon emission goals, new technologies will have a key role to play.
“This new funding will help position I-Phyc as a leader in sustainable water treatment solutions.”
Mark Wilcockson, senior investment manager at the British Business Bank, said: “This further investment from the MEIF will support I-Phyc to create new jobs in the region, invest in its technology and cement its position as a market leader in its industry.”