PFAS: What we are Bullish and Bearish on

Mazarine has been studying the PFAS space for 5 years, and while PFAS frenzy seems to be at an all-time high in 2024, we have found reasons to be bullish on some opportunities, and bearish on others.

PFAS Verticals we are BULLISH on

Testing and Monitoring

Environmental Testing: Investment opportunities are available in companies that develop advanced analytical testing technologies to detect PFAS in 1) wastewater and 2) soil. While testing of drinking water is an opportunity, we are less bullish on drinking water testing & monitoring. Lab services-related companies working with labs offering sophisticated lab techniques like mass spectrometry and liquid chromatography is the single most compelling opportunity in PFAS over the coming 5 years.

Real-Time Monitoring: There is also a growing market for real-time, and near real-time, monitoring tools using IoT devices and sensors to assess PFAS levels in wastewater sources, providing early detection.

Regulation and Compliance

Consulting and Compliance Services: With evolving regulations around PFAS, there is increasing demand for environmental consulting firms to help industries comply with new standards and manage risks. Investing in firms that offer PFAS risk assessments and compliance strategies could be profitable.

PFAS Mitigation Solutions: Companies offering risk management strategies and liability mitigation for PFAS contamination also represent an investment category.

Biodiversity and Ecosystem Restoration

Wetland, Lake, and River Restoration: PFAS contamination in freshwater and coastal marine ecosystems requires large-scale restoration projects. Investment in companies focusing on natural remediation techniques could be profitable, especially in collaboration with governments or conservation groups.

Reach out to Mazarine to trade notes on why we are so bullish on these verticals.

The "frothiness" of PFAS in 2024 has been interesting to watch. As a VC with an impact mandate, Mazarine has been patiently watching, refining our PFAS thesis, and reviewing opportunities. We have made one investment so far in 2024.

PFAS Verticals we are SOMEWHAT BEARISH on

Treatment and Filtration

Activated Carbon Filtration: Companies specializing in granular activated carbon (GAC) technology, which is one of the most common methods for removing PFAS from water, present some investment opportunities.

Ion Exchange Systems: These are effective in selective PFAS removal, particularly for specific types of PFAS, and are an emerging focus for water treatment companies.

Membrane Technologies: Reverse Osmosis (RO) and nanofiltration membranes can remove PFAS from water, and the demand for advanced filtration systems is on the rise.

Absorbents: Leveraging breakthroughs in materials science, some companies are bringing to market absorbent granules that show potential in addressing the growing PFAS challenge.

Waste Management and Land Remediation

Landfill Leachate Management: Companies developing technology to treat leachate (the liquid that drains from landfills) contaminated with PFAS are emerging as key players.

Soil Remediation: PFAS-contaminated soils can be treated through thermal or chemical processes, and businesses focused on soil treatment are potential investment opportunities as regulatory bodies address contamination in non-water environments.

PFAS Verticals we are MOST BEARISH on

(We realize that investors who have parked money in these verticals will disagree with us.)

Removal and Destruction Technologies

Thermal Destruction: High-temperature techniques like incineration are being explored as ways to destroy PFAS in waste streams. Investments in new thermal treatment facilities or mobile treatment units are gaining attention.

Electrochemical and Plasma Technologies: Emerging techniques, such as electrochemical oxidation and plasma reactors, which destroy PFAS molecules through advanced chemical reactions, present opportunities for early-stage investment.

Bioremediation: Some research focuses on developing microbes or enzymes capable of breaking down PFAS, offering a new frontier for both technology development and environmental services.

PFAS Offsetting and Credits

PFAS Remediation Credits: Similar to carbon credits, investment in companies or projects that offer remediation credits or other financial instruments tied to the cleanup of contaminated sites may become an emerging market as environmental regulations tighten.

Reach out to Mazarine to trade notes on why we are so bearish on these verticals.

For questions about the this realm, please contact Mazarine here