Unlocking Bankability: Targeted Support Mechanisms for Green Chemistry. Identifying and Assessing the Impact of Support
Mechanisms on the Bankability of Green Chemistry Projects
report
The fundamental transformation of Europe’s chemicals industry from fossil-based to sustainable resources will require significant investments to scale First-of-a-Kind (FOAK) industrial projects. FOAK projects hold the key: they must prove operational performance and build new supply chains to turn national ambitions into tangible production capacity. While the Netherlands is well positioned to become a leading hub for green chemistry, leveraging its highly-developed logistics infrastructure, integrated industrial clusters, and strong connectivity to Germany and Belgium, FOAK green chemistry projects face significant challenges in reaching Final Investment Decision (FID) and attracting private capital. High capital requirements and significant risks across the value chain often result in a risk allocation stalemate, limiting bankability and making projects difficult to finance under conventional project finance models, which rely on proven performance and stable cash-flow generation. As a result, access to large-scale private investment remains constrained, creating a bottleneck to project scaling and the broader industrial transformation. Large-scale FOAK deployment will require support mechanisms to feasibly derisk projects and unlock private sector financing. FOAK success creates data and replicability, reducing the perceived risks for subsequent projects and enabling Next-of-a-Kind (NOAK) project development.
This study therefore investigated: ➢ Business case risks along the value chain for FOAK green chemistry projects ➢ High-priority support mechanisms for overcoming core bankability constraints.
This study therefore investigated: ➢ Business case risks along the value chain for FOAK green chemistry projects ➢ High-priority support mechanisms for overcoming core bankability constraints.
Topics
TNO Identifier
1032576
Publisher
TNO
Collation
69 p.
Place of publication
Petten