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Innovation Agents on a mission

Every month, an innovation agent from ChemistryNL gives you insight into his/her daily work. Read the blogs of:Martin van Dord, Caroli Buitenhuis, René Reijtenbagh, Eric van Sprang, Marco Tibaldi and Lays da Cruz

This month: Marco Tibaldi

Blog: Parallel Worlds: Why Green Chemistry Can’t Succeed Alone

Across Europe, and especially in the Netherlands, startups are developing technologies that promise to replace fossil feedstocks, recycle waste streams, and produce chemicals with much lower emissions. With our strong universities and green ambitions, we are certainly not short on ideas, pitch decks, and pilots.

Yet, turning those ideas into industrial reality remains surprisingly difficult.

A recent analysis of green chemistry startups in the Netherlands shows that the challenge is not only technological: it is systemic. Success depends not just on breakthrough chemistry, but also on markets, partnerships, infrastructure, and direct involvement of policy.

Part of the explanation is familiar. Green chemistry innovation is slow and capital intensive compared with most startup sectors. Based on the companies interviewed, reaching demonstration scale requires on average around €80 million, while commercial revenues may take more than a decade to appear.

But the most striking finding lies elsewhere. In 28 out of 35 startups, there was no clear evidence that customers actually wanted the solution being developed. Interaction with potential users often takes place only at later development stages, when large investments have already been made. In addition, many of these companies mimic the go-to-market strategy of large corporations operating in established markets. The result? They prepare themselves to fight in a high volumes-low margins game, a game they simply cannot win.

Meanwhile, the structural divide between industry and startups remains clear. As recently noted in an opinion column on Industrielinqs: “The traditional industry owns factories without future prospects. The progressive owns future prospects without factories. Apart, they lose. Together they could win.”

The data from the report supports exactly this point. Startups that align early with larger industrial partners tend to have higher chances of success. Rather than treating industry purely as a future customer, involving potential partners early in the development process can make a significant difference. Continuous dialogue across the value chain helps ensure technologies solve real industrial problems—and evolve in ways that can actually be deployed.

Policy also has a role to play here. If collaboration between innovators and industry is essential, the conditions for that collaboration matter. Clear regulatory frameworks, credible demand signals, and investment support can reduce the risks of working together. Equally important is strengthening innovation ecosystems—networks and organizations capable of connecting startups, corporates, investors, and researchers

The transition to green chemistry will not succeed through ideas alone, nor through legacy infrastructure alone. Progress will depend on bringing both worlds together—innovators who develop new technologies, and industrial players who know how to produce at scale.

 

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