Driving the Raw Materials Transition with BioBased Circular

The application has been submitted by the Top Sector Agri & Food and the Green Chemistry, New Economy (GCNE) platform. They are supported by more than 125 companies and societal organizations, including knowledge institutes such as Wageningen University (WUR), the University of Groningen (RUG), and TNO. The total project cost is 850 million euros by 2032. In addition to the grant from the growth fund, the participating companies will invest another 550 million euros in the project.

European Leader

The goal of the project is to make the Dutch chemistry sector a leader that produces plastics and polymers from building blocks sourced from nature. The idea behind it is simple. The primary raw materials for plastics in packaging, construction, textiles, and paints are carbon compounds. Currently, the chemistry sector extracts these from petroleum, which are essentially millions of years old remains of plants and animals pumped from the ground. These carbon compounds can also be derived from the carbohydrates in plants. Plants capture CO2 from the atmosphere and convert it into carbon compounds. “We leverage the power of plants,” says Arnold Stokking, chairman of the Green Chemistry, New Economy platform. “The use of oil will take some time, but we need to initiate this transition now. The urgency is significant.”

Linking Chemistry to Farmers and Foresters

The aim of BioBased Circular is to establish new production chains between the chemical industry and suppliers of biobased raw materials. The technology to produce so-called biopolymers and other building blocks for plastics from plants already exists but needs to be scaled up. In the Netherlands, European-leading companies such as Avantium and Cosun, along with promising scale-ups like Paques Biomaterials, Relement, and Plantics, are already working on this. “The Growth Fund provides substantial funding for R&D. We have some of that too, but our focus is primarily on scaling up, as our companies are already actively involved,” says Stokking.

The plant-based materials can come from various sources, including agricultural waste streams, landscape management, and the agrifood sector, from pruning wood in forestry, or from specially cultivated crops such as grains and corn. Currently unused lands can also be utilized for cultivation in the future. The project cites examples such as biobased polyester from sugar beets, biobased resins for the construction and furniture industry, biobased paints, coatings, and insulation materials from plant waste, as well as biodegradable biopolymers from wastewater. The goal is to connect companies from these different sectors as suppliers and customers.

A One-Third Reduction in CO2 Emissions

Recycled plastics can already be converted into plastic pellets or pyrolysis oil for new plastic. Therefore, recycling companies like Renewi are involved. The new plastics must be designed to be easier to recycle. This way, they do not need to be discarded or incinerated; instead, they can be repeatedly used as raw materials in a circular economy. This process allows the CO2 from biobased raw materials to be stored in the material for an extended period, just like wood. If successful, the chemical industry could reduce its emissions by 3.5 to 5.8 million tons per year. This represents a third of current emissions. Additionally, this transition could create between 2,500 and 8,300 new jobs and boost the Dutch economy by 1.5 to 3.5 billion euros annually.

From Incubator to Flagship

The start-ups and scale-ups that have been supported by GCNE and other knowledge institutions in recent years can be scaled up with the grant. “We are now moving from the idea phase to implementation, from incubator to flagship,” says Stokking. The intention is to build a large flagship facility in the Netherlands where five so-called demonstrators – companies already engaged with these technologies – will produce 100 kilotons of bioplastics annually from plant materials. The subsidy from the Growth Fund is divided into two phases. Until 2026, BioBased Circular will receive 102 million euros. If the project evaluation shows it is on the right track, it will receive another 236 million euros until 2032. Stokking states, “But with that 100 million, we can move forward in the first three years.”

This article was published on July 3 by Change Inc. with author André Oerlemans and is part of a series of articles on Green Chemistry, New Economy at Change Inc.