Flathead Forge backs Solidec’s decentralized chemical production platform

Flathead Forge Fund 1 has announced an investment in Solidec, a Houston-based company developing modular, on-site chemical manufacturing systems, as part of the company’s recent pre-seed financing round.

Solidec’s platform enables the production of key industrial chemicals—including hydrogen peroxide, formic acid, and acetic acid—using only air, water, and electricity. By generating chemicals at the point of use, the company aims to reduce reliance on centralized production and long-distance transportation, which are common in traditional chemical supply chains.

The approach has potential implications for the water sector, where chemicals like hydrogen peroxide are widely used in treatment processes. On-site production could help utilities and industrial users lower transportation costs, reduce emissions, and mitigate supply chain disruptions.

“Water treatment and critical mineral processing are converging on a distributed future. Solidec's platform cuts cost, emissions, and supply-chain fragility at the source,” said Douglas Lee, managing director, Flathead Forge, in a press release.

Since closing its initial pre-seed round in July 2025, Solidec has secured early commercial customers and continues to expand its footprint. The company also announced a pilot agreement with Lynas Rare Earths to deploy on-site hydrogen peroxide generation at a facility in Australia, demonstrating the scalability of its technology in industrial applications.

“Flathead Forge brings exactly the kind of domain-specific capital and operational network that a company at our stage needs. Their focus on water and critical minerals makes this a genuinely strategic relationship,” said Ryan DuChanois, co-founder and CEO of Solidec, in a press release.

As water utilities and industrial operators face rising chemical costs and supply chain challenges, decentralized production models like Solidec’s could offer a more resilient and cost-effective alternative.