Sherbrooke, Que,-based Oneka Technologies, which has substantial business interests in Nova Scotia, has received a $4.9 million grant from Sustainable Development Technology Canada, or SDTC, as it marks the official creation of its Chilean subsidiary.

The formation of the new entity comes after the success of a six-month Oneka test project off the coast of Agarrobo, near the Chilean capital of Santiago. SDTC funding is tied to research and development projects, with the company funding part of a project and receiving a grant for the rest.

Oneka is developing seawater desalination buoys powered by wave energy in an effort to address the high energy requirements of conventional desalination systems. The company describes its technology as being capable of lowering water costs by as much as two thirds in its water-scarce target markets.

In a statement, Oneka said the deal is part of the Canada-Chile Agreement on Environmental Cooperation, which requires both countries to collaborate on cleantech research and development projects.

“Oneka’s technology desalinates the seawater using no land and emitting no emissions,” said CEO Dragan Tutic. “The systems produce only freshwater that is sent to the coast and low-concentration brine that is released offshore and well mixed with the ocean waves. The multiple-outfall approach makes the brine release responsible with a negligible effect on sea life.

“It is also a great opportunity to have such a demonstration project so we can monitor in the real environment those elements. And finally, with its simplicity and the fact that it doesn’t have any energy cost, it represents a new water source that can be affordable for coastal communities and industries in Chile.”

Founded in 2015 by mechanical engineer Tutic, the company also previously tested a prototype off Eastern Passage, Nova Scotia, and now maintains an office at the Centre for Ocean Ventures and Entrepreneurship bluetech hub in Dartmouth.

And last month, Oneka finalized a $14.1 million Ocean Supercluster deal to work with Nova Scotia shipyard A.F. Theriault & Son, Quebec City water treatment specialists H2O Innovation and the town of Barrington, Nova Scotia to build and deploy a “utility-scale” version of its desalination buoy.

The company’s most recent major funding round was in 2021, when it raised $5.5 million of equity and non-dilutive funding in a deal led by Innovacorp, a forebear of provincial business development agency Invest Nova Scotia.

So far, Oneka has more than 25 employees and projects in Canada, the United States and Chile, with offices in all three countries.

And last month Quebec bluetech support organization Novarium announced that Oneka would be one of eight companies to participate in the first cohort of its Flots Pro accelerator.

Flots targets companies with a product in the market, helping them to navigate the early phases of scaling, such as gaining their first industrial clients. It aims to encourage successful strategies in companies that improve the environment and are commercially viable.