Biobased business: between dream and earning model

"Help entrepreneurs build a successful biobased business, with guidance and support, rental of a Biobased Lab and workstations." That was the big ambition that the Bio Treat Center was given at the start in 2017, however with a small budget. Director Ton Voncken sees that biomass has a lot of potential, but that it also takes time and serious investment to bring customer and plant together. The assumed revenue model may not be realistic, but opportunities are plentiful. That is why he decides to take up the challenge, in a slightly different way.

That slightly different way starts with the location itself. "The intention was that we would use the Water Pavilion for the lab and workplaces, but that location turned out not to be suitable for long-term use. Entrepreneurs would also have to invest 50% in research and development themselves, but they can't do that at all at this stage. They still have to create their market and earning model. Instead of functioning as a kind of real estate developer in disguise, we prefer to support the innovation process, help bring parties together and find financing. From the start, the Brightlands Campus Greenport Venlo has had three themes: healthy food, future farming and biocircular economy. The initial plan was to develop these three themes physically separately. After a good discussion with campus director Saskia Goetgeluk, we let them run together. If you put entrepreneurs together, meetings, inspiration and cooperation arise." That approach proved to be a hit: it immediately resulted in 75% coverage in 2018 for the construction of the first block of 'box in box offices' in Villa Flora, a good basis for further growth. In two years, the demand for workplaces on campus has exploded and many projects and facilities can be realized, thanks in part to the good cooperation between entrepreneurs and institutions on campus.

Helping to pioneer

On the website the Bio Treat Center describes itself as a 'practical testing ground for enthusiastic entrepreneurs with sustainability ambitions'. What can an entrepreneur expect from this? "We help those companies especially in the first two phases of their development. In the first phase there is a great idea, but no earning capacity and little knowledge of business operations. In the second phase, there is already a concrete product, but the company needs to scale up to achieve a good earning model. We help entrepreneurs to go through the learning process that goes with these development phases. This is different for biobased than for other startups, because you are entering a market that does not yet exist; you have to create it yourself. Because society, the government and large industrial companies are looking for this transition, opportunities are created. It is a new and complex playing field, much of which is still uncertain and subject to discussion. It means that you are constantly looking for a way forward, occasionally taking detours or going down dead-end roads. An intensive learning process, but also very fascinating."

"As a biobased business you are entering a market that is not there yet, you have to create it yourself."

Big diversity of biomass projects

Voncken distinguishes 5 transition chains when it comes to the biobased economy: biobased chemistry, green proteins, natural ingredients, biobased materials and soil nutrition. If you set these chains against the initiatives that have arisen in the 3 years that the Bio Treat Center has been active, an impressive overview emerges. By now, more than 60 companies are active on or connected to the campus engaged in biobased initiatives, based on 20 different biomass feedstocks, more than 40 projects are running in various stages of development.

For example, there is a project to use sugar beet as a semi-finished product in the chemical industry, the Plants for Plants project is investigating how nettles can be processed and roadside and natural grass is being processed into insulation material. More information about the projects can be found here.

More than residual flows

Voncken notes that during discussions with parties the image around biomass often needs to be adjusted. "The image still often exists that biomass equals residual flows. But if you want to create a viable business, you need scale. That is almost impossible to achieve with residual flows alone. That is why a basis of 60 to 70 percent cultivated biomass, supplemented with residual flows, will have to be established. But there are still plenty of opportunities to add value to residual flows, especially if you take that up collectively. That is why we have started a separate platform for the agriculture and horticulture sector. We are going to look at the valorization of residual flows, but also at the development of new crops. We must move away from the idea that cultivating biomass is not sustainable. It is important that we create a cycle in production and that we take an integrated view of the use of biomass for food, energy, chemicals and materials. If you keep thinking in boxes, you won't get anywhere. "

"We need to get rid of the idea that growing biomass would not be sustainable."

Fair comparison

At the same time, Voncken is also realistic: the costs of fossil versus the costs of biomass are not currently comparable. "If the negative environmental effects of fossil are not passed on, biobased will remain more expensive. This discussion must be intensified, and all links in the chain must be priced fairly, so that a fair comparison can be made. Governments and industries must also become more realistic about the costs of biobased innovation and development. We are still at the beginning, so it is logical that you need time and serious money to start a transition. If you really want that transition, you have to have the courage to choose for it. Technically, we are quite capable of making the transition from fossil to bio-based. To do so, however, we will have to rearrange the system, and we are not yet ready to take that step. There are heated debates about the sustainability of biomass use. I argue for an independent institute, a kind of biomass authority. It can clarify the sense and nonsense about biomass, bring clarity to the complexity of the issue and involve all actors."

Self in Transition

The Bio Treat Center itself is also entering a transition phase after 3 years of assisting entrepreneurs and coordinating projects. All entrepreneurial facilities will be housed at the Brightlands Campus Greenport Venlo. A number of OP-Zuid projects are now in the completion phase. The entrepreneurs themselves are responsible for the follow-up. A few larger projects will be continued as a separate entity, where various people from the team will find their place. For instance, the lignin project is being scaled up and the BTC Lab is moving to the location of partner Attero. The Bio Treat Center, however, will not be continued as a mainstay for new initiatives. For Voncken a double feeling. "On the one hand, it is great to see the results of three years' work; we have brought about great things and developed a great deal of knowledge and expertise. On the other hand, of course, we are far from finished. It is therefore important that various actors in the market get to work to convert the developed knowledge into biobased projects with impact."

Tips from Ton Voncken for entrepreneurs

Are you one of those inspired entrepreneurs with sustainability ambitions? Then do your advantage with the following tips.

1: Start with your drive, not the technique

Many entrepreneurs start with the technology, but forget that they themselves are the key success factor. Therefore analyse carefully where your own qualities lie, what makes you happy. If you have that self-knowledge, you can work on your personal development and entrepreneurship. The technique comes later.

2: Find your customer's buying arguments

Funding is only a problem when your revenue model is flawed. There is plenty of money to be found if the earning capacity of your business is big enough. And that is determined by the extent to which you can meet the buying arguments of your customer. Your sales arguments are secondary to that.

3: Also talk to a strategic communications advisor

You can be so enthusiastic yourself, the trick is to be aware of what is going on around you. Entrepreneurs are therefore better off exchanging their technical advisor for a strategic communications advisor. He or she can help you look through the other person's eyes. Only then can you translate your message.

4: You can't apply for appreciation

People will appreciate your efforts if you do what suits you and what is in your power. In case of a setback, keep pointing at the other person and try to explain it again doesn't work. Rather look for the common denominator and try to figure out how you can positively stimulate others.

Would you like to know more about biobased business and bio-circular entrepreneurship? Then contact Brightlands Campus Greenport Venlo.