Flocean, a Norwegian subsea desalination company, has expanded its Series A financing to $22.5 million, with global water technology leader Xylem joining as a strategic investor. The investment strengthens Flocean’s push to commercialize its subsea desalination systems, including the planned launch of Flocean One, which is set to become the world’s first commercial subsea desalination plant when it goes live in 2026.
The expanded round includes new participation from Xylem Inc., Ari Emanuel, Orion, Rypples, and Wellers Impact’s Water Unite Impact Fund, in addition to continued backing from Burnt Island Ventures, Freebird Capital, Katapult Ocean, Nysnø Climate Investments, and the CEO of Asset Buyout Partners. Xylem will support Flocean’s global scaling strategy as demand for reliable freshwater continues to rise across industrial and municipal sectors.
Alongside the funding news, Flocean announced an agreement with Norway’s Alver Municipality to explore the use of Flocean’s desalinated water for both industrial operations and local consumers. The collaboration will examine how Flocean’s output can be integrated into the municipal water network. Flocean has been producing desalinated water for a full year at its test site located at Mongstad Industrial Park in Alver.
Proceeds from the Series A will fund the launch and operation of Flocean One at Mongstad, support internal organizational growth, and advance multiple large-scale commercial projects across Europe, the Middle East, the Americas, and island regions. The company’s Build Own Operate model enables it to sell water as a long-term service under offtake agreements spanning 15 to 25 years. Initial project agreements are already underway across the Mediterranean, Red Sea, and Indian Ocean markets.
Flocean positions its subsea desalination model as a transformative alternative to conventional surface-based plants, which face high capital costs, long permitting cycles, and coastal land constraints. By installing systems 400 to 600 meters below sea level, the company uses natural deep-water pressure to achieve up to an eightfold reduction in capital costs per unit of capacity, a 50% reduction in energy use and emissions, a 95% reduction in coastal land needs, and the elimination of chemical pretreatment. The approach also avoids toxic brine discharge by releasing treated output at depth, well below sensitive coastal ecosystems.
The company plans for Flocean One to deliver 1,000 cubic meters of freshwater per day in 2026, with modular systems capable of scaling to 50,000 cubic meters per day to meet the needs of municipalities, industrial operations, and agricultural zones across more than 90 water-stressed coastal markets.
Flocean was founded in 2024 as a spin-out from FSubsea and combines more than thirty years of subsea engineering expertise with the mission of delivering climate-resilient water at an industrial scale.
KEY QUOTES:
“We’re not making an incremental improvement—we’re changing the fundamental economics of water. Water-intensive industries from semiconductors to data centers to mining are increasingly constrained by water scarcity. They need solutions that can deploy faster, cost less, and operate more sustainably. That’s exactly what subsea desalination delivers.”
Alexander Fuglesang, Founder & CEO of Flocean
“Flocean’s subsea desalination technology represents a bold leap forward in how we produce fresh water and address water scarcity — one of the most urgent challenges of our time. As demand for water accelerates globally, we’re investing in breakthrough technologies that have strong potential to scale. This partnership reflects our commitment to solving water with innovation that empowers our customers and communities to build a more water-secure world.”
Snehal Desai, Chief Growth and Innovation Officer at Xylem
“We are excited to collaborate with Flocean on testing their groundbreaking water desalination technology. Our municipality applauds bold efforts like this and we will work as a team to evaluate and consider Flocean’s offering for both local industrial users, as well as the municipal network.”
Nina Bognøy, Mayor of Alver Municipality
