CarboNet makes waves in industrial water treatment

Wastewater treatment is one of the most pressing global challenges of our time. With increasing water scarcity and growing industrial demands, the need for innovative solutions has never been greater.

Canadian startup, CarboNet, has emerged as a disruptive player in this critical industry, with an industrial wastewater management solution, cutting-edge chemistry and a bold approach to growing internationally.

In 2023, the Vancouver-based company was recognized by Export Development Canada (EDC) as an “Export Star” for its outstanding achievements in clean technology.

According to the company website: “As freshwater becomes scarce and increasingly regulated, companies from energy and mining to food and beauty turn to CarboNet to reduce, recycle and renew the water they need to thrive.”

Through its NanoNet technology, CarboNet has introduced a “sea change” in the way wastewater is treated. It uses advanced chemistry powered by fast-acting molecules, flocculants and coagulants that attach to specific contaminants—oil, sludge and other pollutants—in the water, so they float to the surface and can be easily removed through industrial water filtration.

Co-founder Amielle Lake, a recent guest on EDC’s Export Impact Podcast, describes the technology as a perfect blend of precision and applicability.

“We’re able to design molecules and control them with tremendous precision. You sort of have to double back to the drug delivery world where we’re applying it to wastewater and it’s a sea change in how anyone’s ever thought about wastewater treatment,” she says.

• Cost efficiency: CarboNet’s technology reduces both operating expenses (OpEx) and capital expenditures (CapEx) for industries.
• Eco-friendly chemistries: By replacing traditional chemicals with fast-acting, environmentally friendlier alternatives, CarboNet reduces environmental impacts.
• Versatile applications: From oil and gas operations to municipal wastewater systems, NanoNet’s potential spans multiple industries.

The story of CarboNet begins at the University of British Columbia (UBC), where Lake first met Dr. Michael Carlson, the inventor of NanoNet and CarboNet’s chief technology officer (CTO).

At the time, Carlson was researching drug delivery systems when he discovered a potential solution for decontaminating water. Originally intended for oil spill cleanup, his findings shifted toward wastewater treatment after realizing the broader applications of his chemistry.

“The bad news is we can’t treat an offshore open spill with the technology that Mike invented, but we can develop very effective, very cost-effective, very easy-to-apply green chemistries to wastewater treatment,” Lake explains.

Unlike many startups that begin by testing their products in domestic markets, CarboNet chose to take a bold leap. It headed straight to the Permian Basin in Texas, one of the highest producing oilfields in the United States.

Why Texas?

• High demand: Hydraulic fracturing (fracking) operations in the Permian Basin use vast volumes of water. The need for effective and cost-efficient water treatment solutions was urgent.
• Market scale: While Canada offered several proof-of-concept opportunities, Texas represented a massive market with immediate scalability potential.

The journey began modestly, with the team hand-mixing their first product in a wooden box and conducting field tests in a garage. Within 18 months, CarboNet had become the leading supplier of flocculants and coagulants in the Permian Basin.

While CarboNet’s story is one of success, it wasn’t without hurdles. Here are two major challenges the company faced and how they overcame them:

1. Access to capital: Scaling a capital-intensive business, like CarboNet, requires significant funding. Lake notes that while industrial water filtration remains a critical issue, it hasn’t always been a top priority for investors.

To address this, the company capitalized on strategic partnerships, including their relationship with Export Development Canada (EDC).

• EDC provided credit insurance, securing the company’s receivables during its U.S. expansion.
• EDC facilitated connections with prospective partners, accelerating CarboNet’s market entry.

“We’ve dealt with EDC across a few of their programs. Because we’re an exporter, they insure all our very precious accounts receivable, which is obviously key to building and managing a company, like ours. EDC was wonderfully aggressive. We really appreciated that they did everything they said they were going to do on timelines,” says Lake.

2. Talent acquisition

Building a team capable of navigating complex markets was another hurdle. From their Vancouver headquarters, finding top-tier sales and marketing talent that were several flights away from manufacturing centers was challenging.

To overcome this, CarboNet focused on building local teams in its target markets. This strategy not only made scaling operations easier, but also strengthened relationships with local stakeholders.

Lessons for entrepreneurs

CarboNet’s success offers valuable insights for businesses planning to scale internationally:

1. Identify market pain points: Ensure your product addresses urgent and real-world problems that customers can’t ignore.

2. Leverage your network: Building strong personal relationships opens doors and accelerates trust.

3. Think globally from Day 1: Targeting international markets early can help tap into larger opportunities.

4. Use available resources: Programs, like EDC’s suite of solutions, can mitigate risks and provide access to funding and partnerships.

5. Adopt a “play-to-win” mentality: Focus on bold, strategic moves that prioritize long-term success over incremental gains.

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Beyond its immediate business accomplishments, CarboNet is reshaping how industries think about water, industrial wastewater management, and wastewater treatment processes.

“Society won’t function without water in its processes,” Lake explains. “We’ve got a solution that makes it cheaper and greener.”

By pushing the boundaries of chemical innovation, CarboNet is helping industries worldwide reduce costs, improve operational efficiencies and address global challenges, like water scarcity and pollution with their wastewater treatment processes.

CarboNet’s story is an inspiring example of how Canadian startups can compete at a global level by leveraging innovation and bold strategies. 

For entrepreneurs seeking to scale their ventures beyond Canada, CarboNet’s approach offers a roadmap for success. Whether it’s identifying major market pain points, building strong partnerships, or adopting a play-to-win mindset, the lessons from CarboNet’s rise are invaluable.

Are you ready to take your business global? Explore EDC’s solutions for cleantech exporters and learn how their programs can support your international growth.

Listen to this episode of the Export Impact Podcast on the EDC website, or subscribe on Spotify, Apple or Amazon Music, and start turning your global business goals into reality.

The content for this customer profile was sourced from the company website, interviews and other third-party resources, but EDC hasn’t independently verified the information or data.

This content was partially created using generative artificial intelligence (GenAI).