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The chemical industry in the Netherlands is facing a significant transition to using renewable and biobased raw materials to combat environmental pollution and move toward a circular economy. Startups play an essential role in this transition but face significant challenges in scaling up their innovations. The high cost and complex technology requirements of pilot and demonstration facilities make scaling up to commercialization particularly difficult.

Last month, Invest-NL published the report “Factory-Free Scaling in Biobased Chemistry in the Netherlands” on this topic. This report sheds light on the challenges and solutions surrounding scaling biobased chemistry startups in the Netherlands and highlights the need for shared facilities to successfully grow this industry.

The report was compiled to provide insight into the current state of affairs and to make strategic recommendations for strengthening shared facilities. These shared facilities are essential to support startups in their growth without the need for large capital investments in proprietary infrastructure.

Recommendations

The report makes important recommendations for the entire ecosystem, such as increasing awareness and support from involved organizations and financial parties, coordinating networking by a connecting party, increasing investment readiness by taking more risk in the early scaling-up phases and exploring financing options for startup costs. The report also highlights the importance of mentoring startups through, for example, accelerator programs such as Green Chemistry Accelerator and Circular Factory.

Xandra Weinbeck, Senior Business Development Manager at Invest-NL: “Shared facilities are a crucial link in the transition to a sustainable biobased chemical industry. They allow startups to scale up cost-effectively and gain access to essential expertise and equipment. Without these facilities, we risk stalling promising innovations, which hinders economic growth and slows progress toward a sustainable future.”

If insufficient attention is paid to the barriers, the mismatch between supply and demand for shared facilities will continue, the report says.