Revolutionizing Wastewater: How a Game-Changing Startup is Using AI and Advanced Sensors to Decarbonize the Industry

Founded in 2020 as a spin-off from the Fraunhofer Institute, Variolytics has created cutting-edge sensor technology that helps detect and decrease greenhouse gas emissions in wastewater systems. Did you know that wastewater treatment plants contribute about 2% of global CO2 emissions? That’s similar to the aviation industry! In Europe, waste treatment accounts for as much as 15% of emissions per municipality, mainly due to nitrous oxide (N2O), which is 300 times more damaging than CO2.

Variolytics uses advanced sensors and artificial intelligence to provide real-time data on N2O levels. This helps treatment plant operators make informed adjustments to their processes, cutting harmful emissions. Traditional methods for such measurements have often been expensive and inaccurate. However, Variolytics’ EmiCo solution gives operators a clear view of their emissions and helps them stay compliant with regulations.

“It’s exciting to watch how FTTF’s investment strategy at Variolytics boosts research and helps deep-tech entrepreneurs grow. We’re thrilled to attract prominent investors like NAP,” Tobias Schwind, Partner at FTTF.

Since August 2024, NAP has been working closely with Variolytics to develop strategies that reduce risks, test pricing, refine marketing plans, and identify key customers. This hands-on approach has allowed NAP to explore international markets and collaborate on new product strategies.

This technology showcases how European innovation can significantly reduce emissions while being efficient and cost-effective. Variolytics stands out as a leader in water technology,” Shari Rana, Investment Director at Nordic Alpha Partners.

The EmiCo lite solution aligns perfectly with NAP’s strategy, focusing on being Better, Cheaper, Simpler, and Available at scale. Within just a year of installation, this technology can cut emissions by up to 50% and reduce energy use by 20%.

“Our intensive collaboration over the last six months has validated Variolytics’ strong technology and helped us craft a shared vision,” Jannik Brey Christensen, Value Creation Partner at NAP.

“Teaming up with NAP early has reassured us that we chose the right partner to help expand Variolytics. Their expertise in water tech and quick growth strategies creates a solid groundwork for our future,” Johann Barlach, Chief Financial Officer of Variolytics.

Nordic Alpha Partners is taking a notable stake in Variolytics, joining existing investors like HTGF and FTTF, as well as new partner EIC. This investment comes through NAP Fund II and is expected to finalize in Q1 2025, pending regulatory approvals.

“This commitment from NAP signifies Variolytics’ promise. NAP and HTGF have previously co-invested in Wiferion, which was acquired by an American company in 2023,” Anne Umbach, Investment Manager at HTGF.

“The EIC Fund supports promising technologies in energy, green solutions, digital advancements, and health. We’re excited to work with Nordic Alpha Partners to help bring Variolytics’ innovations to market, marking its role as a key player in EU water technology,” Svetoslava Georgieva, Chair of the EIC Fund Board.