Accelerating the energy transition with nanotechnology

Also Roderik believes that we as humans need to be far more economical with our scarce resources: “There simply is no alternative. At Delft IMP we work on this daily. Delft IMP develops nanocoatings and manufacturing methods for powders because, at the edges—the interfaces between materials—there is much room for improvement. Our nanocoatings are extremely thin, sometimes only a few atoms thick, applied to powders. These thin layers substantially enhance the properties of those powders. Delft IMP focuses on powders used in batteries, fuel cells, and electrolysis. These three activities are becoming increasingly important in the energy transition because they can store electricity (batteries) or convert it into hydrogen or vice versa (fuel cells and electrolysis). The use of batteries, fuel cells, and electrolysis will continue to grow. We make it more efficient and cheaper.”

Evelien: “With this application technology, Delft IMP is able to control the process to optimise the film thickness and reduce the use of scarce resources, such as cobalt.” Wouter adds: “The sustainable use of resources is Delft IMP's hallmark. A technology with great potential because the technology applied to powders has a much broader range of applications.”

The way of product development is also special. Roderik: “What makes Delft IMP unique is that we often develop and optimise these coatings together with our customers. We can provide the production capacity to produce this on an industrial scale. As a result, this nanocoating process becomes part of the powder production or processing at the industrial customer. For example, think of the giga-factories for batteries that are currently being established all over the world.”

Invest-NL participates with € 5 million in a € 10 million funding round for Delft IMP. The other investor is Sandwater from Norway. The financial injection will be used to further scale up Delft IMP's technology. The financing involves these two parties investing money in Delft IMP and receiving an equity interest in the company in return. Roderik: “The counterparty is, of course, that we use the money to grow and increase the company's value. For us, value is not just monetary. Our technology focuses on energy systems to ultimately emit less CO2 and to use the rare materials we have on Earth more efficiently, either by using less or by extending their lifespan. This financing is used for that purpose. To expand the team, but also to design and build production machinery, and of course to conduct research ourselves to further improve the coatings.”

As with any investment, a good relationship is crucial for success. And you must work on that relationship. Wouter states that it is always a great journey: “Without friction, there is no shine! As new investors, you partly share the same interests as the company—you both want it to become a great success. But during the investment process itself, there are definitely conflicting interests, such as cash skin in the game, meaning the amount of money entrepreneurs invest in their own company. We negotiated seriously on this, and we came to a good agreement. It was also a good way to get to know the management better on a business level. Roderik adds: “Together, you look for the right balance in the collaboration. What’s nice is that Invest-NL, in a sense, is also a startup; they also started with a small team and are building their expertise to make good investment deals. You can recognize different phases and the hurdles associated with them. That creates a bond.” Evelien: “And an important point to mention is that this did not lead to delays. The process of the investment, from introduction to approval by IC within Invest-NL, was completed within 4 months. A startup indeed has more to do.”

Every investor is of great importance to Delft IMP. Roderik: “Of course. But Invest-NL also brings something extra to the table. They are inventive in trying new, better ways to add value beyond financing, such as a focus on ESG (Environmental, Social and Governance) and the dynamics and diversity within the team. That is a significant added value. The focus on achieving a carbon-neutral society is important to us. We share that ambition and it keeps us sharp.”

Invest-NL will also remain involved with Delft IMP in the future. Evelien: “Together with TU Delft, a first-hour shareholder, Invest-NL has nominated Jacqueline Vaessen as an independent board member. She will act in the best interests of Delft IMP. Our goal is for her to add structural value to Delft IMP, thereby increasing and accelerating the chances of success. Furthermore, Invest-NL remains formally involved through shareholder meetings, and informally involved, for example, through ad-hoc questions from Delft IMP, Sandwater, or other stakeholders.”

Wouter talks about more opportunities from Invest-NL: “As our portfolio of investments grows, so do the potential synergies. We actively share general market information, and our aim is also to connect management teams of different companies so they can learn from each other and share their networks. Invest-NL will certainly also actively contribute with its experience and network when a next investment round is upcoming.”

A better future begins today. Or actually yesterday. Roderik, Wouter, and Evelien are daily engaged in shaping the future. But what does that future look like? Wouter: “CO2 emissions will be legally restricted on a large scale and thereby receive a meaningful market price. Business and societal choices will change as a result. Society will become more moderate, mindful, innovative, and sustainable. This is made possible by demonstrating how things can be different in combination with strong political decisions.” For Roderik, there are few other options for the future: “The world must do more with less. There is no alternative but to reduce our carbon footprint. Humanity's standard of living will be higher in ten years than it is now. This apparent contradiction is achievable but can only be realized if we use the special materials we have more efficiently, and at the same time accelerate the energy transition. The energy transition fundamentally requires a materials transition to be successful. We work together on this every day.”