CHROMAFORA PFAS REMOVAL (IEU SIW VD)

The project will finance the promoter's research and development related to Per-and Poly-fluoroalkyl substances (PFAS) removal technology and the deployment of water treatment installations 'as a service' at end-user premises. Chromafora is a Swedish cleantech company that uses patented technologies to remove heavy metals and PFAS from polluted water. PFAS are considered as contaminants of emerging concern. Because of their water- & oil-repellent, non-stick characteristics, PFAS are used in many daily-use products. When these products degrade in landfills, PFAS can contaminate water bodies (mainly groundwater). The abstraction of water from these water bodies is a hazard for human health. Detection and control of PFAS has been included as a new requirement in the recently adopted Directive (EU) 2020/2184 of the European Parliament and of the Council of 16 December 2020 on the quality of water intended for human consumption (Drinking Water Directive or DWD), leading to stricter requirements in the water for human consumption.

The aim is to support a solution for thousands of potential clients, mainly at landfills, and at industrial sites where hazardous PFAS pollution accumulates.

The Project fulfils the Priority 'Clean Water' of the InvestEU Agreement by targeting water pollution reduction and supporting compliance with the Water Framework Directive. It also aims to meet the Directive (EU) 2020/2184 (Drinking Water Directive or DWD) by removing Perfluoroalkyl and Polyfluoroalkyl substances (PFAS) contamination in water bodies. 

The proposed Operation aligns with the EIB's lending priorities of water & wastewater, innovation, and circular economy, as well as crosscutting objective Environmental Sustainability (ES), particularly to the objectives "Sustainable use and protection of Water and Marine resources," "Pollution Prevention and Control," and "Transition to a Circular Economy." It aligns with the latest Water Sector Orientation, as removing micropollutants (such as PFAS) is a strategic sector orientation. The Project will contribute to developing and deploying innovative technologies with substantial environmental and public health benefits. 

The Bank's contribution will address market failures such as imperfect information, limited investments, and incomplete markets linked to innovative processes, and uncertain customer acceptance of innovative solutions. It will positively affect public health, considered a public good. 

The Promoter faces significant risk, requiring investment in anticipation of market and regulatory demand for contaminant removal. The high failure rate of similar ventures, and its high financing needs make for high-risk proposal. The equity-type venture debt provided by EIB complements the equity financing raised, reducing further dilution of existing shareholders and providing longer tenors than commercial venture debt. 

The EIB would not be able to provide such type of financing support during the period in which the EU guarantee can be used, or not to the same extent, without InvestEU. 

Compliance with the environmental "acquis", notably Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by the Directive 2014/52/EU, will be assessed during appraisal, as well as compliance with the Industrial Emissions (IED) Directive 2010/75/EU and other applicable environmental acquis.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if after the project appraisal, the EIB concluded that the promoter is subject to EU public procurement legislation (Directive 2014/24/EU or 2004/18/EC, where applicable), then the Bank would require the promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/24/EU or 2004/18/EC, where applicable), as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.