MIT chemical engineering graduate student Sean Hunt and medical doctor Gaurab Chakrabarti started the company Solugen in 2016, producing hydrogen peroxide-based products for cleaning wastewater, which used gene-edited yeast that Chakrabarti discovered.
It produces enzymes that are used to produce hydrogen peroxide. This bio-based, innovative product, along with other similar chemicals, have been marketed and sold for spa cleaning, disinfecting wipes, and gas and oil runoff wastewater treatments.
It has reached a revenue of 12 million dollars in the past year, and this year it is expected to surpass 30 million dollars. It got 30 million dollars venture capital and 68 million dollars from investors Valor Equity Partners, Founders Fund, and others, and Solugen is now valued at 250 million dollars, earning it a spot on the list of Forbes' Next Billion Dollars Startups this year.
Solugen's first product for water treatment is PeroxyZen intended for pools, spas, and hot tubs. It is petroleum-free and is better than other traditional cleaners because the enzymatic process, which created the bioperoxide product, also produced organic acids that removed mineral buildup, which clogs and corrodes pipes.
In 2017, the business, together with Diamond Wipes, launched another bio-based product known as Ode to Clean. Diamond was in charge of manufacturing while Solugen was in charge of marketing and producing hydrogen peroxide. Being made with plant starch, it is biodegradable and has no toxic fumes.
By 2018, Solugen was marketing products for wastewater cleaning using the same chemical base and selling them to oil drillers. They also acquired a new Houston plant, which now produces around 4,000 gallons of product a week. Solugen is now aiming to provide multiple tanker trucks worth of product a day.
The innovative use of biodegradable enzymes in wastewater treatment prevents the buildup of mineral scales from and corrosion of water pipes. The product could increase the efficiency of water injectors by removing iron buildup without having to add more acid stimulant treatments.
The products are better than phosphates because manufacturing one ton of the wastewater treatment product sequesters 1.35 tons of carbon dioxide. In contrast, the phosphate HEDP emits three tons, according to Life Cycle Analysis. It is an attractive product for companies assessed by investors and governments on their impact on the environment.
Furthermore, the runoff of phosphate cleaners results in algal blooms that harm fisheries and local ecosystems, spurring the EU and the US to ban phosphates in detergents.
Solugen's Texas operations are considered essential and have been open despite the pandemic. The estimated demand for its wastewater cleanup product surged by a minimum of 50%.
Solugen has also started manufacturing hand sanitizers made from its organic hydrogen peroxide and alcohol. It produced over 100,000 gallons of the product and donated most of it to local health care centers. It is considering producing one million gallons by the end of the year because of the commercial opportunities.
Solugen's founders believe their innovation can also reinvent fertilizers with the addition of metals and essential minerals to the soil. They are expecting approval from the US EPA soon, and the company is poised to hire 20 more employees in mid-2021 to add to their 70 workers.