Infinity Recycling: cooperation is the magic word

Almost a year and a half ago, the Investment Fund Groningen (IFG) decided to participate in Infinity Recycling's Circular Plastic Fund. Infinity founder Jeroen Kelder explains what the Northern Netherlands stands to gain from this.

The creators of Sesame Street already knew it: cooperation is one of the most important words if you want to move forward, change and improve things. In all the transitions rolling over us now, this is still true, or all the more so. IFG and Infinity together are much more than the sum of their parts. BioBTX in Delfzijl is one of Infinity's portfolio companies. Clariter, which plans to build a plant in Delfzijl that converts plastic into valuable raw materials, is another.

Kelder is no stranger to the region. He studied Economics in Groningen and got to know the ecosystem a little better in the meantime. 'Without wishing to suck up: I am impressed by how well organized it is in the Northern Netherlands, how well people know each other. I also notice that they give each other more. That's all very important. Through cooperation with the IFG, we come across opportunities to invest in companies or advise them. Scaling up proven technology. That's what we help with. We do that with money, but also by providing structure, network and focus.'

Six years ago, Infinity was born almost on the back of a beer mat. 'I have lived in the UK for years and came into contact with a company there that was extracting oil from waste and then selling it to the Dutch petrochemical sector. He got a subsidy to build a plant in Scotland. I thought: that's illogical. Surely it would be much better to locate in the Netherlands? The framework conditions are better there, there is the market and cooperation is much more advanced. I started talking and discovered how good the infrastructure in the Netherlands actually is. In ports, chemical clusters, governments. I became fascinated by the plastic recycling industry. My business partner, Jan Willem Mulder, had invested in that same British company from a petrochemical background. That's how I got to know him. And yes, then on a Friday afternoon - quite appropriately in Circl on Amsterdam's Zuidas - we thought of setting up something together to get more good initiatives off the ground. That became Infinity Recycling.

That was 2019. Now there is 175 million in the Circular Plastic Fund and with it Infinity is investing in seven promising companies. In the meantime, concrete thought is being given to the next fund, to achieve even more impact and greater returns. 'But we are still very busy with that first fund, you know. It's not just about writing a check. We deliberately keep the number of participations low. Ultimately there will be no more than ten. We seriously want to help these companies move forward. We do that by actively watching and advising.

To that end, Kelder and his cohorts do not have the least names ready. 'On the one hand, we have an advisory board with senior people from business and science who think strategically with us. On the other hand, we have experts who can assist our portfolio companies operationally. We call that the bench. There are indeed experts there with a variety of backgrounds. From people who are well versed in scaling up to specialists in protecting intellectual property. They can all help. We use them for such things as market research, deal sourcing, due diligence and portfolio management (after the investment is made). They are sparring partners who think with us about the challenges of scale-up and can assist our portfolio companies.'

In many ways, the Netherlands is the base of Infinity Recycling, which has offices in Rotterdam. 'That is not for nothing. We think the Netherlands is very well positioned to play a pioneering role. Recycling is more advanced here, technologies are given more space and, above all, cooperation runs much better than elsewhere. This is certainly also true in the Northern Netherlands. There is room and the lines are short. The green energy that comes ashore in Eemshaven is essential.'

Kelder sees a lot of cross-pollination. From the university and colleges, from companies, from NOM, the government and other investors. 'In the Northern Netherlands, the idea of doing things together has long been established. It's a kind of tradition. And that is exactly what is now desperately needed to get through the transitions. Even better: it's a wonderful opportunity to get better in all respects. And we are happy to participate in that.

For Kelder, there is no doubt that the transition to a circular economy will lead to enormous growth. 'So this is the time to anticipate that and build momentum already.' That belief comes in part from how Europe looks at the economy. New financial sustainability standards are on the way. Recycling and impact must be included in corporate policies. 'That, of course, makes us especially interesting to our investors.' The American economist Benjamin Graham once said it very poetically: price is what you pay, value is what you get. Kelder: 'That is exactly what we are doing, adding value. By investing in companies, but also by helping the ecosystem move forward together with the IFG and others.