Green Chemistry Gains Ground: Entrepreneurs Unite for a Sustainable Future

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by KnowESG
KnowESG_Green Chemistry Gains Ground - Entrepreneurs Unite for a Sustainable Future
Chemicals are necessary to create packaging, clothing, paint, and numerous everyday products, and derived from fossil oil. But Northern Netherlands is now leading the way in the move to green chemistry. FREEPIK.

As the world races to replace fossil fuels with renewable energy, one vital sector remains largely overlooked: Chemicals. Essential in producing packaging, clothing, paint, and countless everyday products, chemicals have traditionally been derived from fossil oil. However, in the Northern Netherlands, a quiet revolution is underway to transition the industry toward green chemistry.

Unlike other chemical clusters in the Netherlands, the Northern region,  encompassing areas like Eemshaven, Delfzijl, and Emmen, has minimal legacy in petrochemicals. “This gives us a clean slate to focus on sustainable innovation,” explains Henri Kats, investment manager at the North Netherlands Development Agency (NOM). The region is now a hub for circular economy efforts, with projects spanning biomass chemistry, circular plastics, and carbon capture and usage (CCU).

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This transition has attracted an impressive lineup of entrepreneurial ventures. CuRe Technology is leading the way in solutions for hard-to-recycle plastics. Circtec is building the world’s largest facility for chemical recycling of car tires. BioBTX is turning plastic waste into valuable aromatics like Benzene, Toluene, and Xylene. EEW Delfzijl is advancing thermal waste processing. These startups are not only innovating but also collaborating, reinforcing the idea that circularity is a team sport.

Yet, transforming the chemical industry is no easy feat. Competing with the entrenched, cost-efficient fossil-based industry poses significant challenges. “This industry has had a hundred years to optimize the process and can now supply relatively cheap products. We have only been doing research for 15 years,” says Tijmen Vries of BioBTX. Add to that uneven global waste policies and the financial risk associated with scaling new technologies, and the path becomes even steeper.

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“Financing green chemistry is tough,” admits Pieter ter Haar of Circtec. Traditional investors are wary of long-term returns, though recent breakthroughs, such as BioBTX’s €80 million and Circtec’s €150 million investments, offer hope. Crucial to these successes has been early backing from NOM, which helps build confidence in green innovation.

Another major hurdle is regulation. Current laws concerning "waste status" make it challenging for materials to be repurposed as renewable raw materials. Companies must wade through bureaucracy to have the label removed, limiting their ability to upcycle products. As Vries puts it, “In a circular economy, waste shouldn’t exist.”

The entrepreneurs agree that government support is critical not just through penalties on polluters but also proactive incentives for recyclers. Stable policies, subsidies for recycled inputs, and adjusting tax systems to reflect environmental costs could level the playing field.

Amid these obstacles, a spirit of collaboration shines. Chemport, a network supported by NOM, connects startups, scaleups, and even large corporations like BP to share resources and knowledge. “It’s a culture of openness,” says Josse Kunst of CuRe Technology. “We’re not just competing; we’re co-creating.”

The message is clear: The journey to a fossil-free chemical industry requires time, funding, patience, and above all, partnership. As Kunst aptly concludes, “Circularity is a team sport. We have to do it together.”

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Source: Innovation Origins

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