The chemical industry is on the cusp of a major transition—one in which we’re shifting from fossil-based raw materials to renewable and circular carbon sources, where CO₂ is no longer an emissions problem but a raw material. And that race has already begun, including in the North. But does the Northern Netherlands have what it takes to lead the way internationally in this area? “If we embrace that vision together, then it’s also time to think big, act big, and start playing Champions League soccer.”
The carbon transition is not only important for the future of our planet, but also for the strategic autonomy and economic future of the Netherlands and Europe. For this to happen, a new industry must be able to compete with an industry that has been dominant for decades. And essential technologies must be able to scale up successfully. So what does that require? Where are the opportunities and obstacles? And how far have we come in the North?
The Carbon Transition Explained
Almost all the products we use every day are made up of carbon atoms. “And 90% of all chemical products are made from fossil carbon sources,” says Matthias Heinemann, professor of molecular systems biology at the University of Groningen and former co-leader of the Future Carbon NL growth fund proposal. “We need to move away from that, but the big question is: how do we obtain the carbon we need for products from renewable sources?”
According to Heinemann, there are a few ways to do this: “We can convert recycled products back into new products, or we can extract our carbon from bio-streams or biomass. But there’s also a third option: Carbon Capture & Utilization (CCU), in which we capture the CO₂ that’s emitted and use it as a raw material. And by combining these elements, we can set in motion a truly circular transition, in which we are no longer dependent on fossil raw materials for our everyday products and CO₂ is no longer a waste product. CCU must play a key role in this.”
Why is now the right time?
Due to factors such as rising energy prices, a decline in available raw materials, and geopolitical instability,
the pressure on the chemical industry has increased enormously. “We’re definitely noticing that around us,” says
Tijmen Vries, Director of Strategic Development at BioBTX. “The plants here in Delfzijl that relied on salt chemistry, local raw materials, or cheap gas are struggling, and some have even gone bankrupt. I think the era of large-scale plants is now over, because it’s simply no longer sustainable.”
On top of that, the chemical industry is highly dependent on imports. “We’re not just talking about oil or gas, but also about critical raw materials, such as phosphate,” says Marga Breeuwsma, Operations & Regulatory Manager at SusPhos. “We use it to make fertilizers, among other things, and our economy is structured in such a way that we depend on phosphate for our food production. Now that we can no longer import it from Russia, we are completely dependent on phosphate from Morocco throughout Europe. That is precisely why it is incredibly important to be able to recover raw materials locally from waste streams or produce them from renewable sources.”
“Even when considering future revenue models and the international competitive position of Europe and the Netherlands, it’s important that we really start taking steps now,” said Prof. Heinemann. “Because China, in particular, is catching up to us in every area, and that’s not because they’re good at copying technologies. When I open major scientific journals like *Nature* and *Science* these days, it’s mainly Chinese research groups that dominate the pages. Green chemistry—and CCU in particular—is one of the few areas where we can still distinguish ourselves and take the lead.”
Why the Northern Netherlands?
According to Heinemann, the North is the ideal location for the carbon transition: “We have access to green energy here, we have the space, and grid congestion and nitrogen issues are less of a problem here than in the rest of the country. We also have fewer major fossil fuel players here than in port cities like Rotterdam and Antwerp. Change is more difficult there because the chemical companies are all interdependent. You need a place where you can build the new green chemistry from the ground up, and the Northern Netherlands is the ideal place for that.”
“With all these elements combined, we have a strong starting position for green chemistry in the North,” adds Henri Kats, program director of Chemport Europe. “The fundamental research in the region is also world-class, and we’ve managed to attract great companies like Avantium, CIRCTEC, and, most recently, SkyNRG. And we have governments and chemical companies that also embrace the vision of green chemistry and have come together within the Chemport ecosystem. That gives us something that’s quite unique.”
That combination of factors was also decisive for a company like ChainCraft in its decision to build a factory in the northern Netherlands. “Space and power supply are important, of course, but all the support we received was also a deciding factor—for example, from the NOM, but also from various government agencies,” says Joline de Brauw, COO of ChainCraft. “And, of course, Avebe, because they’re willing to take such major steps toward sustainability and want to collaborate with us on this for the long term. That’s really cool, and we desperately need companies like that.”
How far along are we in the transition?
In addition to ChainCraft, several green chemical plants are being built in the North that will begin operating on a commercial scale in the coming years. Avantium and CIRCTEC, for example, as well as BioBTX. “We turn recycled plastic back into chemical building blocks, and this will make us the first plant in the Netherlands to do so,” says Vries of BioBTX. “We now have a contractor, all our suppliers for components, and our customers, and the permits are almost finalized, so we can start construction in Delfzijl at any moment.”
For SusPhos, a Leeuwarden-based company that recovers phosphate from sewage sludge ash, nearly all signals are green for the construction of the first full-scale demonstration plant at SNB in Moerdijk. “We’re currently in the basic engineering phase; we expect final approval this fall, and then we can begin construction,” said Breeuwsma. “Applying our process after the sludge incinerators will give SNB a significant reduction in its CO₂ footprint.”
“Our process produces no waste streams, and we can offer our two products at market-competitive prices,” Breeuwsma continues. “We use the recovered phosphate to make circular fertilizers with a zero carbon footprint, and the second product—a cement substitute—is completely carbon-neutral, so that’s a fantastic and sustainable alternative for a very energy-intensive industry.”
CuRe Technology, based in Emmen, has developed a groundbreaking technology to recycle used polyester and expects to secure funding this summer for the construction of a commercial plant. “But aside from the funding, we’re running into a jungle of regulations. Not even for the plant’s permit itself—that went fairly smoothly—but especially all the peripheral issues that require approval from various agencies, which sometimes don’t even agree with one another,” says Josse Kunst, co-owner and CCO of CuRe. “It costs a lot of money and causes significant delays, and that really makes it difficult for a startup with a short runway and a high burn rate.”
The bottleneck: permits
CuRe is by no means the only company facing regulatory hurdles. “I think permits are definitely the biggest bottleneck right now,” says Henri Kats of Chemport Europe. “In that regard, we’ve made things unnecessarily complex for ourselves in the Netherlands, and in recent years, a culture of avoiding legal risks as much as possible has really taken hold. But if we take a step back, we all recognize the importance of the carbon transition. So let’s admit that things can never go perfectly and focus on the benefits rather than the risks. Because of these kinds of delays, many of these companies have to raise additional funding, and that shouldn’t be necessary—especially since it often involves public funds.”
“As an entrepreneur, it’s very frustrating, but on the other hand, I also understand very well that the average permitting authority doesn’t always have that highly specialized knowledge in-house,” says Josse Kunst of CuRe. “I worked in Singapore for a while, and there, when you want to build a factory, you can turn to an organization that specializes in this, sorts out complex issues, and handles the entire permitting process. I think we here in the North would also benefit greatly from such an organization.”
“We’re building something completely new, so we knew from the start that the permitting process would be complex,” says Joline de Brauw of ChainCraft. “That’s why we’ve had many discussions with other companies at the same stage, such as Avantium and BioBTX. We’ve learned an incredible amount from them, which allowed us to arrange and prepare a great many things early on and to involve the relevant authorities in the process from the start. We don’t want to celebrate too soon, but it all seems to be working out, and we plan to actively share everything we’ve learned with other companies.”
Competing in a fossil-fuel market
But aside from the availability of circular products, the crucial question remains: is the market willing to pay for them? “Competing with the fossil fuel industry can be quite difficult at times,” says Tijmen Vries of BioBTX. “Potential customers are sometimes still quite hesitant, and wildly fluctuating oil prices—and consequently, the price of plastic—don’t really help either. Back in February, plastic was still dirt cheap. Now, with the closure of the Strait of Hormuz, it’s much more expensive, but unfortunately that doesn’t work in our favor. Customers see it as a temporary situation, and in any case, they’re paying just as much as the competition.”
“We’ve found a very efficient and cost-effective way to turn recycled polyester into new products. That’s why we’re seeing a lot of interest from the market, but all those big companies would rather be buyers of our products than investors or co-investors. They want the product, but not the risk,” says Josse Kunst of CuRe. “And that creates a problem, because to sell products, we need to scale up and build a factory, for which we need investors. And public investors can only invest once market players are willing to take the first step.”
“So there’s still quite a funding gap there,” Kunst continues. “And if we, as a region, have a clear vision for the carbon transition but have to wait for or depend on major market players, then we’re essentially relinquishing control over that vision. So what we’re really missing is coordinated strategic funding for the entire ecosystem. That’s quite difficult to set up, but if we don’t do it, we as a region simply won’t achieve our strategic goals.”
European legislation
“The fossil fuel industry has many decades of development and optimization behind it, so that makes it harder for green chemistry, as a new industry, to compete with it,” says Henri Kats of Chemport Europe. “It also makes it harder to find investors. Funding requires the creation of demand, and I think Dutch—and especially European—legislation can play a major role in that.”
Tijmen Vries of BioBTX also believes that European legislation can make a big difference. “Laws and regulations that encourage bringing green chemistry products to market help on all fronts. They create demand, help companies get through that initial phase, secure funding, and build plants, because people know there will be a market for them. Laws are already being drafted, but it’s a complex process. After all, green chemistry is used to make an incredibly wide variety of products, and you need separate laws and regulations for all those end products.”
The EU is strongly committed to Carbon Capture and Storage (CCS). Carbon Utilization (CCU), in which captured CO₂ is reused as a raw material for the production of chemicals, materials, and fuels, is recognized in European policy but is even less developed in terms of regulations and market mechanisms. “That makes a big difference for companies,” says David Ziegler, co-founder and CCO of the Antwerp-based company D-CRBN. “Storing CO₂ remains a cost, while reusing CO₂ creates economic value. With our plasma technology, we can convert CO₂ into carbon monoxide and syngas—essential building blocks for the chemical industry—in an energy-efficient way.”
CCU as a Key Technology
D-CRBN recently raised €17.5 million in a Series A funding round to further scale up its technology, roll out industrial demonstration projects, and pave the way for commercial applications. “We focus on converting CO₂ into valuable raw materials,” says Ziegler. “That’s why we’re eager to collaborate with companies active in carbon capture and with chemical companies that can further process these raw materials into sustainable products.”
“In addition, we are exploring various opportunities in the northern Netherlands and are currently working on a grant application. Groningen Seaports is developing a CCU Field Lab, where we may be among the first companies to test our technology. This offers a unique opportunity to further validate our technology on an industrial scale. At the same time, we’d love to connect with companies that are open to collaboration on CO₂ valorization and circular carbon chains.”
Bright Renewables, based in Enschede, focuses on Carbon Capture, among other things, and is also looking to the North for opportunities to scale up. “As a company, we are part of the HoSt Group and develop sustainable technologies, including in the field of Carbon Capture,” says Ivan Derkink, Business Development Manager. “In addition, we’ve developed a technology to produce e-methanol from CO₂ and hydrogen. We’re currently conducting a TRL-7 pilot in Sweden as part of the Horizon Europe project, but we also want to set up a second pilot in the northern Netherlands and are looking for potential partners for that.”
Green chemistry is one of the few areas where we can still take the lead. China is catching up to us in every respect.
Matthias Heinemann University of Groningen
The future of the chemical industry is green
“CO₂ is here to stay, and if we in Europe want to maintain our autonomy and pursue a new, green revenue model, we’ll really have to start looking more closely at these kinds of technologies,” said Henri Kats. “The chemical industry is at the forefront of the supply chain for the end products we use and need every day. It’s an industry that has caused pollution, but it’s also an industry that can change. And it must, because it’s an indispensable industry.”
“I truly believe that the Northern Netherlands is the place for green chemistry; otherwise, we wouldn’t be here,” says Josse Kunst of CuRe. “We have fantastic companies here, all the necessary research institutions, and municipalities and provinces that are contributing ideas and lending a hand. We have everything we need to take the lead internationally in this field. If we embrace that vision together, then it’s also time to think big, act big, and start playing Champions League soccer.”