Green chemistry entrepreneurs in the Netherlands are facing a persistent obstacle: there is too little capital and support to scale up from demo to industrial scale (TRL 5 to 9). As long as this funding gap is not closed, fossil alternatives will remain dominant and the necessary transition will stall.
Research confirms bottlenecks
Commissioned by Green Chemistry, New Economy (GCNE), the Transition Finance Network, together with ROM-Nederland, Invest-NL, RVO, the Ministry of Climate & Green Growth, and the NGF Biobased Circular, investigated the causes and potential solutions. The conclusion: the chemical sector is lagging behind when it comes to scaling up. Private investors are not yet getting sufficiently involved, while entrepreneurs need to make the leap to industrial scale right now.
Advices from the report
To really get green chemistry off the ground, the report recommends, among other things:
- Ensure robust support mechanisms and demand management.
- Set up one clear desk for entrepreneurs - for knowledge, permits, space and subsidies.
- Bring focus and develop a clear strategy: determine what does and does not belong to Dutch green chemistry and make conscious choices in that regard.
- Set up an investment fund specifically for the step from demo to industrial scale green chemistry.
Entrepreneurs and partners underline urgency
"Building green chemistry is crucial for a future-proof Dutch industry. I am therefore pleased that GCNE has taken the initiative to address a persistent problem within green chemistry. The report reflects well the signals from the sector and is an important basis for the Ministry of Climate & Green Growth to make adequate policy." - Karlo van Dam, Director Sustainability Industry, Ministry of Climate & Green Growth
“Every day, we see promising circular chemistry companies get stuck when making the transition from the demonstration phase to industrial scale. A targeted funding solution is essential to get that engine running.” — Angelique Erkenbosch, Business Developer at InnovationQuarter
“As a scale-up in green chemistry, we experience firsthand every day just how challenging it is to secure investments for scaling up. Without appropriate funding, we won’t be able to make a real impact.”
— Ton Vries, CEO of BioBTX
“With our technology, we can repurpose residual waste as a raw material, but to make a real impact, we need to be able to operate on an industrial scale. This report clearly shows where the bottlenecks lie and where the solution can be found.” — Michiel Spits, CEO of DOPS Recycling Technologies
Continued
GCNE, ROM-Nederland, the Regional Development Companies (ROMs), Transition Finance Network, Invest-NL, the Ministry of Climate & Green Growth and the NGF Biobased Circular are catching on: over the next few months they are working together to explore and outline the first contours of an investment fund to give green chemistry the boost it needs.
"This report underlines that we must act now. From GCNE, together with the Regional Development Companies, TFN and partners like the NGF Biobased Circular, we are working with entrepreneurs, government and investors to create the conditions and capital that are needed."
- Dina Boonstra, Director NV NOM on behalf of ROM Netherlands
Want to learn more or get involved? Feel free to contact Angelique Erkenbosch at T. +31 6 280 44 572 or E. angelique.erkenbosch@innovationquarter.nl.