A water treatment firm which is aiming to clean up rivers and other waterways has received backing from Swedish investors as part of a new funding round worth more than £2 million. I-Phyc has developed a nature-based, wastewater treatment system which uses algae to remove phosphorus, ammonia and other contaminants, while locking away carbon and creating sustainable by-products from the biomass produced.
It has now secured a fresh round of funding worth £2.3 million, backed by Mellby Gård, a Swedish investor targeting promising water technologies, the Midlands Engine Investment Fund and private investors. I-Phyc says its system has the potential to improve water quality in rivers and streams significantly and enable water companies to meet stricter limits on pollutants which is difficult to achieve economically using current methods.
Its technology is already in operation at water treatment plants at Weston-super-Mare in Somerset and Broadwindsor in Dorset, and will be used in a new plant at Croxton Kerrial in Leicestershire. The company, which is headquartered in Birmingham, has seen a major increase in enquiries over 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 it to enhance its technology, bring new sites on board and enhance its position in chemical-free water treatment systems. The company, which also has a laboratory in Bristol, currently employs 15 staff and is planning to create five new jobs in the coming months.
Karl Wills, executive chairman 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 Mellby Gård.
"Mellby Gård 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 chief executive of Mellby Gård, added: "This investment is the first to be made by our water fund, a vehicle targeted at early stage investments in technology companies within the broader water market.
"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."
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Additional funding was provided by the Concept & Early Stage Fund which is part of the Midlands Engine Investment Fund and managed by Henley-in-Arden firm Mercia.
It is the third investment by Mercia and the Midlands Engine Investment Fund which initially backed I-Phyc in 2019.
Mercia's investment manager Kiran Mehta 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."
