Eco-friendly chemicals manufacturer secures $32M in funding

Sean Hunt (left), co-founder and chief technology officer of Solugen and Gaurab Chakrabarti, co-founder and CEO of Solugen Tuesday, March 5, 2019, in Houston. Solugen discovered part of a protein that can be used to make hydrogen peroxide. At room temperature and normal pressure, the company combines oxygen, water, sugar and a proprietary catalyst to create hydrogen peroxide. less Sean Hunt (left), co-founder and chief technology officer of Solugen and Gaurab Chakrabarti, co-founder and CEO of Solugen Tuesday, March 5, 2019, in Houston. Solugen discovered part of a protein that can be ... more Photo: Steve Gonzales, Houston Chronicle / Staff Photographer Photo: Steve Gonzales, Houston Chronicle / Staff Photographer Image 1 of / 11 Caption Close Eco-friendly chemicals manufacturer secures $32M in funding 1 / 11 Back to Gallery

Houston-based Solugen, a specialty chemicals manufacturer, announced Wednesday that it closed on a $32 million Series B funding.

Founded in 2016, Solugen creates hydrogen peroxide by placing natural materials -- sugar, water, oxygen and a proprietary catalyst derived from the protein -- into a reactor system. The system does not require the high pressure or intense heat typical of making the chemical compound.

At HoustonChronicle.com: Solugen finds sweet spot with industrial hydrogen peroxide

Hydrogen peroxide has many uses. It prevents infection on a scraped knee, cleans up grease, helps etch printed circuit boards and kills bacteria on fruits and vegetables. But its ability to clean wastewater from hydraulic fracturing could be the most popular use in Texas.

"The company's success to date proves that there is significant demand for cleaner, greener methods of chemical production," Brian Singerman, partner at San Francisco-based venture capital firm Founders Fund, which led the funding round, said in a news release.

The Series B funding comes seven months after Solugen secured $13.5 million. The money will be used to develop other chemicals and to create portable reactor systems that, standing 23 feet tall and mounted on a semi-trailer truck, would enable companies to make hydrogen peroxide on-site, eliminating shipping costs.

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"Innovations like the mini-mill, which go beyond the product, are especially important as we move forward, since they illustrate how we understand the needs of our customers, who are operating in an environment where freight, importer, and distributor margins for petrochemical-based water treatment chemistries cost more than double our solutions," Solugen Chief Executive Gaurab Chakrabarti said in the news release.

Solugen's revenue grew by nearly 10 times over the past year due to multiple multi-million-dollar oil and gas contracts, the news release stated. The company recently began construction of a 200,000-square-foot headquarters in Houston that will be completed early next year, housing the company's research and development, logistics operations and its commercial scale mini-mill.