The Cabinet decided on July 10 not to finance the second phase of the National Growth Fund Programme BioBased Circular. The decision follows the advice of the National Growth Fund Committee and means that the reserved 236 million euros will not be converted into a final allocation. BioBased Circular had submitted the plan for the follow-up phase, running from 2027 to 2032, on December 1.
The NGF Advisory Committee concludes that the conditions of the Project-Specific Agreements have not been fully met and also questions the choice of biopolyesters as the central solution. According to the committee, a convincing market proposition for these materials is lacking, and alignment with European policy has not been sufficiently demonstrated. The composition of the consortium also played a role in the negative assessment: the committee notes a lack of stronger representation from industrial parties.
Response BioBased Circular
BioBased Circular does not agree with the committee's conclusions. The consortium states that the project-specific agreements have been met and that the focus on biopolyesters formed the basis of the program from the very first phase. According to the organization, biopolyesters require significantly less bio-based raw material than alternative chemical routes and tap into a polyester market that is one of the largest plastics segments worldwide. According to BioBased Circular, more than 140 companies, ranging from startups to large enterprises, are involved in the program both substantively and financially.
The consortium believes that the committee is primarily assessing the current market situation, whereas the program was established with a view to the regulations and demand expected from 2030 onwards. BioBased Circular calls the loss of funding a setback for the sustainability of the chemical industry and for the agricultural sector, which had been promised new sales prospects with biobased raw materials.
Consequences for ongoing activities
According to BioBased Circular, the decision has no direct consequences for 2026. Funding for the dozens of projects already started remains secured, and the budget for the current EKOO and DEI+ calls also remains available. The organization will use the summer to determine how activities can be continued, possibly in a streamlined form. More clarity on this is expected in September.
According to BioBased Circular, over the past three years some two hundred projects have been launched at more than 140 companies, and a broad community has been built around the development of biopolyesters in the Netherlands. The organization says it continues to believe in the potential of these materials, even without the second phase of the Growth Fund program.
Source: Biobased Circular
Photo: ryna, Adobe Stock
