A $5.8-million seed round will help Laval, Que.-based Dispersa increase production of a chemical derived from food waste which is used widely in cleaning supplies, and advance it toward commercial-scale production.

Dispersa is behind a process named BioEterna that uses microorganisms to ferment oils and sugars into a surfactant, a family of commonly used chemicals found in cleaning products, cosmetics and even ice cream. The company’s goal is to improve the sustainability of surfactants, which are sourced primarily from petroleum and palm oil.

These traditional sources contribute to demand for fossil fuels and, in palm oil, a product linked to deforestation.

“It’s a significant milestone and chapter in our journey . . . closing this round is going to help us boost production, that’s No. 1 for us,” Nivatha Balendra, CEO and founder of Dispersa, said in an interview with Sustainable Biz Canada.

Led by Nàdarra Ventures and backed by a consortium of Canadian investors, the funding will help substantially scale up production and marketing of its flagship product, PuraSurf M, which is made in Nova Scotia.

BioEterna and PuraSurf

The surfactant cuts greenhouse gas emissions compared to its petroleum or palm oil counterparts and helps limit the clear-cutting of rainforests in regions like Southeast Asia to make way for palm oil farms.

One of Dispersa's biggest challenges will be overcoming a cost barrier, because biosurfactants are more expensive than surfactants made from petroleum and palm oil, limiting their attractiveness in the market. However, Balendar said PuraSurf M has already taken a big step in that direction, lowering the price gap by about 50 per cent because it is derived from food waste.

Dispera’s ambition is to make PuraSurf M price-comparable to surfactants made from palm oil in two to three years, Balendra said.

“Even though there’s interest to adopt, it really needs to meet the economics of our customers that are already dealing with tight margins,” she said. “At Dispersa, we really want to be able to create something that offers that ability to make biosurfactants mainstream.”

It also performs on par or better as a surfactant in some use cases, she added, addressing another key issue with its industry acceptance.

A key priority of the seed funding is expanding to commercial production of PuraSurf M with a contract manufacturing group. The aim is to accelerate production by 50 times to fulfill existing orders in North America and satisfy its expanding customer reach. Balendra expects Dispersa will reach commercial-scale production by the end of 2025.

Its plan is to sell PuraSurf M to cleaning product manufacturers that make surface cleaners, detergents and hand soaps for institutional and industrial markets such as hotels and the hospitality sector.

PuraSurf M has met regulations in Canada and Dispersa is working toward U.S. sales.

Starting its board

The seed round also establishes Dispersa’s board of directors. Mary Dimou, general partner of Halifax-based biotechnology venture capital fund Nàdarra Ventures, and Alexandra Baillie, president and managing director of Toronto-based impact investment firm Good & Well, are among its first members.

Both are part of organizations that participated in the seed round.

“Really honoured to have two amazing women join us on this board,” Balendra said. She noted Dimou’s background in venture capital and technology, and Baillie’s experience in the investment sector as important knowledge gains for Dispersa.

The company of 12 is also looking to grow its headcount.

Expansion to new markets planned

Balendra’s goal for Dispersa over the next two years is to focus on cleaning products to meet consumer interest. The plan is to then expand into home cleaning products such as laundry detergents, and other adjacent markets.

“The goal is for us to then use BioEterna, leverage that and build upon our library of ingredients to bring this solution to as many industries as possible and be able to create a bigger impact,” Balendra said.

Other commercialization paths include: product development with companies tailored to their specific needs; and joint development with chemicals companies, multinationals and distribution firms that want to bring waste-derived biosurfactants to more markets.

“We want to be a part of as many sustainability stories as possible.”