Venture Investments in Safer Chemistry

People prefer safer products. Safer products need new chemistries and materials. Developing these new safer chemistries and materials is an innovation and an investment opportunity.

One of the clearest recent cases that illustrates this opportunity is the chemical class of Polyfluorinated Alkyl compounds, also known as PFAS, or as “forever chemicals”.

The PFAS chemicals were first made in the 1930s and the class includes thousands of different chemicals that deliver unique functions including water and grease repellency, temperature and chemical resistance, and flame resistance. Common uses include textile treatments, food packaging, personal care, electronics, building materials, cosmetics, firefighting foams, and cookware.

The PFAS chemicals share a similar structure that makes them hard to breakdown. Concerns about the toxicity of PFAS date back to the manufacturing of perfluorooctanoic acid (PFOA) and Perfluorooctane sulfonic acid (PFOS), when these chemicals were found in workers and local communities experiencing a higher incidence of cancer.

More recently, brands and manufacturers looking for alternatives, have been switching from the longer chain PFOA and PFOS (known as “C8” from the number of carbon atoms in the chain) to shorter chain PFAS structures including perfluorohexanoic acid (“C6”), perfluorobutanesulfonic acid (“C4”), fluorosilicones, and other derivatives. These substitutes share many of the same chemical properties and potential impacts as the original PFOA and PFOS and are still considered PFAS chemicals. Many companies are now looking for true PFAS-free alternatives.

There are currently more than 130 policies in different states, regulating the use or sale of PFAS-containing items in food packaging, apparel, children’s toys, and cosmetics. The US EPA has regulated PFOA and PFOS and is considering restrictions on all PFAS chemicals. The EU published a proposed restriction on all PFAS in 2023, that would affect a wide range of industries, if adopted.

In textiles and apparel PFAS chemistry is used as a fabric treatment to impart durable water repellency (DWR), or in its polymeric form (PTFE) to construct breathable waterproof membranes. These functions are mainly relevant in the outdoor performance category, but PFAS is often also used in the active, workwear, and lifestyle categories.

The original DWR fabric finish was based on C8. Awareness of PFAS’s toxicity from industry sustainability leaders such as Patagonia led to the outdoor industry switching from C8 to the less harmful C6 PFAS form, despite a loss in performance. As readily acknowledged by most brands C6 is a half way solution. This fact combined with the changing regulatory environment triggered a quest for a PFAS-free DWR solution that works. Some of the young companies developing PFAS-free DWR solutions include Green Theme Technologies, Beyond Surface Technologies, and OSM Shield. Established companies such as WL Gore, Huntsman, and Chemours also offer PFAS-free chemistries along with existing PFAS-based solutions.

Breathable waterproof membranes are going through a similar transformation, with brands and consumers looking for a PTFE-free solution. Some of the companies developing PTFE-free breathable waterproof membranes include young companies such as Dimpora and Amphico, as well as established companies such as WL Gore, BenQ, and Sympatex.

In food packaging PFAS chemistry is used as an additive that imparts moisture and grease resistance to single-use food service products such as paper plates, clamshells, trays, and fast-food paper.

Food packaging industry awareness about PFAS started several years ago, initially with some of the environmentally conscious brands. A turning point was in January 1, 2020 when BPI, one of the main compostability certifying organizations, ceased awarding the compostable certification to products containing PFAS. Leading brands such as Repurpose had already been working to remove PFAS from their products. Most of the rest of the industry followed over the next couple of years, with many companies using alternatives chemistries such as Solenis. PFAS can also be eliminated by changing the design of the packaging and using laminated or sprayed barrier layers.

In the personal care space PFAS is used in pigment dispersants, often for color cosmetics products that make long-wear claims. It is also used in some hair care products to provide conditioning, and in its PTFE form, in dental floss. An alternative PFAS-free pigment dispersant solution was developed by P2 Science. The company has also developed an alternative to the fluorinated acrylates sometimes used in hair care products, with Unilever’s Living Proof brand as one of the adopters.

PFAS was first added to firefighting foams in the 1960s to fight fuel fires on US Navy ships. This new type of Aqueous Film Forming Foam (AFFF) became the firefighting standard at all military bases and airports and its use has been a significant contributor to PFAS contamination of underground water. The US military has announced plans to eliminate PFAS from all firefighting foams and there are several companies developing nonfluorinated solutions that can be used in some of the applications where AFFF has been used. Examples of companies working on safer firefighting foams and gels include FireRein and Strong Water Technology.

A common application for PFAS based chemistry is non-stick pots and pans. Even products that are advertised to be “PFOA and PFOS-Free” are still likely to contain other chemicals from the PFAS class. Other applications in the built environment also include products like plumber’s tape, house wraps, and silicon sealants.

PFAS chemicals are also used in the manufacture of electronic components. Much of the silicon semiconductor industry relies on the use of fluorine-containing chemicals to create patterns in silicon wafers. Changing silicon etching chemistry will be harder than the previous examples, but there may be opportunities to reduce the auxiliary use of PFAS chemistry in electronics. PFAS chemistry is also used in products where chemical and fire resistance are essential, such as battery separators.

The transition to safer products is happening inside each product category. For example, between 2010 and 2017 established food brands have bought at least 80 organic food brands. Of these 80 acquisitions, 43 had published deal values, for a total of $45 billion. The same driving factors are re-shuffling personal care, textiles and apparel, packaging, and almost every other product category.

While the use of PFAS chemistry may be eliminated from apparel, packaging, personal care, and other consumer applications, finding alternatives for its use in electronics manufacturing, especially silicone etching, may take longer. In the meantime, for those few cases, we may have to resort to destroying PFAS waste. There are also numerous sites around the world where the groundwater has been contaminated by PFAS releases over the years, that will have to be cleaned-up.

Several methods of PFAS destruction are available, such as UV irradiation, developed by young companies like Claros and EcoSpears, and electro-oxidation, developed by companies like OxByEl and Aclarity. There are also companies that focus on separating PFAS leaving the destruction to others, including Cyclopure, and Purrafinity.

Eliminating PFAS is part of our mission. Safer Made portfolio companies involved in removing or reducing PFAS chemicals are: Green Theme Technologies (PFAS-free DWR textile finishing), Dimpora (PTFE-free breathable waterproof membranes), Repurpose (PFAS-free single use food service products), and P2 Science (alternatives to PFAS containing dispersants and conditioners).