Previously known as Environmental Material Sciences (EMS), soil remediation platform LiORA has raised a $5.1 million CAD seed round to execute its U.S. market strategy. Based in Calgary and Saskatoon, the company finalized this all-equity round in January, led by Conexus Venture Capital Fund II and BDC Capital’s Sustainability Venture Fund (SVF), with contributions from PIC Investment Group, Golden Opportunities Fund, and WTC Investments. LiORA chairman Kerry Brown and CEO Steven Siciliano also joined the round.
A report from the Auditor General noted 24,109 contaminated sites across Canada as of March 2023.
In an interview with BetaKit, Siciliano described the funding as a significant increase from their previous $1.6 million pre-seed financing, adding that they secured an additional $1.4 million in venture debt from RBCx. BDC SVF partner Anamika Mukherjee and Conexus Venture Capital principal Alex Shimla will join LiORA’s board along with independent director and Siemens veteran Jeff Dyck.
Siciliano, a professor of soil toxicology and Industrial Research Chair at the University of Saskatchewan, decided to develop new industry tools based on his work on soil remediation from Canada’s North to Antarctica. This academic pursuit led him to collaborate with oil and gas firms on toolset development.
LiORA, formerly EMS, created a sensor to analyze soil pollutants, a platform to interpret data, and a nutrient mix called BioLodestone to break down hydrocarbons. Spun out from the University of Saskatchewan in 2019, the company aids undisclosed international oil and gas companies in decontaminating sites in Canada and the U.S.
“These companies are striving for sustainable, effective financial liability reductions,” Siciliano remarked.
Contaminated sites, such as oil refineries and old gas stations, hold substances that can pollute the environment. The March 2023 report from the Auditor General estimated that cleaning 4,500 unmediated sites could exceed $10 billion.
Siciliano highlighted LiORA’s sensor’s capabilities, which track biological activity and pollution for over two years, coupled with AI tools for insights to expedite cleanup from twenty to five years.
“The typical company addresses only 10 percent or less of its contaminated sites at a time,” Siciliano asserted. “We aim to elevate that to 100 percent by making it cost-effective and scalable.”
LiORA, employing around 30 people, has achieved over 70 percent annual revenue growth. Siciliano plans to use the funds to expand the developer and software engineering teams. The next-generation sensor targeting salinity spills, noted as more toxic and common, is set for a Q2 2026 launch.
While already holding multiple U.S. contracts, the seed funding primarily aims to validate a scalable U.S. market entry. “Proving we can sell in that market is pivotal for Canadian startups,” Siciliano said.
With files from Josh Scott. Feature image courtesy of Patrick Hendry via Unsplash.