NTU professor’s startup Aromatec scores funding

Many people may not realize this but there’s a complex technology behind the production of their favorite beverage to make sure it’s of top quality.

Singapore-based startup Aromatec has just raised an undisclosed sum to help improve that tech.

The round was led by Sunbo Partners, the Singapore subsidiary of South Korean investment firm Sunbo Angel Partners. A corporate strategic investor that develops and operates wastewater treatment systems also participated in the round.

From left: Aromatec CEO and chief technology officer Lei Shi, Aromatec co-founder Rong Wang, Sunbo Angel Partners founder and CEO Youngchan Choi, and Sunbo Angel Partners deputy general manager Ming Jin Goh / Photo credit: Sunbo Angel Partners

What problem is it solving? Founded in 2018, Aromatec manufactures hollow-fiber membranes for the concentration of liquid products in industries such as beverage, wastewater treatment, flavor, and fragrance.

Manufacturers typically use thermal evaporation – which involves generating a vacuum and heating the beverage – to make drinks concentrated. However, this method requires huge capital and operating expenses. Applying heat also alters the taste and aroma of the end product.

Forward osmosis is an alternative to thermal evaporation. It’s a natural process that doesn’t require external heat or pressure and too much energy. It also doesn’t alter the taste and aroma of the end product.

“We pivoted FO [forward osmosis] technology from water reclamation to concentration application because we believe that there is a more essential need for this technology and solution to enhance existing concentration processes,” Aromatec said.

Current solutions in the market include flat-sheet membranes. However, these may have issues with how water flows through the membranes and are quite difficult to use due to intensive pre-treatment and maintenance, the company observed.

After 10 years of doing research and snapping up fresh capital, Aromatec’s Rong Wang and Lei Shi are ready to commercialize their hollow-fiber membranes specially designed for forward osmosis – a first in the world, they claim.

By adopting Aromatec’s technology, customers may save on energy as well as transportation and storage costs due to the lower volume of concentrates, the company told Tech in Asia. It can also customize equipment and systems based on the customer’s needs.

Aromatec, however, is aware that adoption may take time due to the high capital expense for adopting a new manufacturing and production system. It’ll also require several tests before a manufacturer could fully adopt a new technology.

How much traction has it gotten? The company estimates the forward osmosis market to be worth US$6 billion in 2017. Meanwhile, the hollow-fiber membrane market could have been worth US$5.4 billion in 2019. Aromatec said it currently has several corporations testing its technology.

One is a European flavor and fragrance company that has ordered a pilot system and additional membrane modules. It also intends to deploy a full-scale industrial manufacturing system in the near future. Another corporation has also ordered several membrane modules for testing.