Just like in the rest of the Netherlands, businesses in North Holland experience the consequences of the energy crisis on a daily basis: grid congestion is slowing down growth, high energy prices make it difficult to remain internationally competitive, and making business operations more sustainable calls for different choices. “With everything that is happening in the world, the energy transition is more relevant than ever,” Robin says. “Not only from a climate perspective, but also from an economic and geopolitical necessity. Energy independence and strategic autonomy are becoming increasingly important.”
North Holland is feeling the pressure of the energy crisis
According to Reynier, the urgency of the energy transition is evident in everyday practice: “Grid congestion is having a major impact. New businesses are finding it harder to set up, existing enterprises cannot expand, and sustainability plans are stalling. That is costing the economy a lot of money. Part of the solution lies in reducing energy demand to relieve pressure on the power grid. That is quite a challenge, especially when you see that the demand for electricity is only increasing due to the use of heat pumps, electric vehicles, and data centres that are still being built. Another, larger part of the solution is to better match energy supply and demand, for example via software such as flexibility platforms or energy management systems. Opportunities also lie in hardware. Think of a heat network, alternative energy carriers (such as hydrogen or methanol), and batteries that can store energy for longer periods.” Robin adds: “All these challenges are creating scope for innovative entrepreneurs who are developing solutions for a smarter and future-proof energy system.”
Towards a smart energy mix
Robin and Reynier agree that primarily a combination of technologies and innovations will make the difference. According to Robin, this diversification offers perspective. “The realisation is growing that the future revolves around a smart energy mix. The energy transition is a complex system of electrons and molecules (biofuels, hydrogen). There is an increasing focus on which energy carrier best suits which application. In North Holland, we are seeing a broad palette of innovations emerging. Storage technology in particular is developing rapidly. An increasing variety of forms of energy storage is emerging. Not only lithium batteries, but also iron-air batteries, solid-state batteries and solutions for long-term storage.”
Unique combination in North Holland
“In terms of grid congestion, the Netherlands is one of the hardest-hit countries in Europe,” explains Reynier. “If an entrepreneur gets a working solution here, they’ve proven themselves in one of the most difficult markets in Europe. We speak to international entrepreneurs who are coming to the Netherlands precisely because the challenges here are so great. If a solution works here, it will probably work anywhere.” According to Robin, North Holland benefits from a unique combination of factors. “In this region you’ll find large-scale industry with many sustainability challenges, major energy consumers such as data centres, and opportunities for large-scale energy generation through offshore wind. Furthermore, we have opportunities for things like methanol production. We actually have all the facets of the energy transition together here. That diversity is interesting and makes North Holland an ideal testing ground for new technologies.”
Barriers to growth
The opportunities seem endless. Yet for many innovative companies, scaling up remains difficult. Hardware companies in particular run into major challenges. “For software companies it is often simpler,” says Reynier. “With a few million euros you can usually already secure customers and revenue. But if you are developing a new industrial technology, you need a lot of time and millions of euros just for the initial prototypes. The problem lies mainly in the phase between initial development and the first demonstration projects. Funding is often lacking there. In addition, regulations frequently play a retarding role. Permit procedures take a long time and innovative technologies do not always fit within existing frameworks.”
Patient investors
Right in that funding gap, between initial development and demonstration, ROM InWest tries to make a difference. Within this playing field, ROM InWest supports entrepreneurs with funding, guidance, and network development. Robin: “The breadth of the energy transition is reflected in the diversity of companies we support. In doing so, we not only invest in innovative companies, but we also help companies in their growth, for example by guiding them through various acceleration programmes.” According to Reynier, ROM InWest's strength in investing lies primarily in the combination of capital, knowledge, and long-term commitment. “We are patient investors,” he says. “We don't just pull out when things get difficult. Especially with complex innovations, you have to give entrepreneurs the time to build.” In addition, ROM InWest has a strong network within the region. “We know which parties are active and can make connections between entrepreneurs, governments, and industry,” according to Robin. “For example, together with our ecosystem partners in the North Sea Canal area, we are looking at whether we can realise a physical location there where companies that have an innovation for making industry more sustainable can carry out their pilots. You have to do that together.”
Pioneer role
According to Robin and Reynier, one thing is certain: the energy transition is no longer a ‘nice to have’, but an economic necessity. Robin concludes: “Perhaps the current energy crisis is precisely the acceleration we need to be able to further develop innovations. North Holland can play a pioneering role in this.” Ambitious entrepreneurs in North Holland working on an innovation that stimulates the energy transition can always contact ROM InWest. That is how together we take the next step in finding new opportunities within the energy sector.
