Startups in the biobased chemistry: build a factory or outsource the production

In a circular economy, materials are no longer produced from petroleum, but from plants. Innovative technologies are needed to facilitate this transition. The start-ups attempting this often encounter financial obstacles when scaling up their technology. The costs of a required demonstration plant can be very high (tens of millions of euros).

In a circular economy, materials are no longer made from crude oil, but from plants. Innovative technologies are needed to achieve this transition. Start-ups attempting this often encounter financial hurdles in scaling up their technology. The costs of a necessary demonstration plant can be substantial (tens of millions of euros). Meanwhile, the end market still does not exist, making the final financial outcome uncertain.

The startup Relement B.V. has developed a strategy together with Invest-NL to overcome these obstacles by outsourcing the initial production demonstration to a third party. Relement B.V.'s experience is described in a report: “Biobased chemistry start-ups: build a factory or outsource production?”