Driven to make an impact with supercritical water gasification

The innovative Dutch company SCW Systems is developing two technologies that contribute to the energy transition and a circular economy. Invest-NL is investing with a committed amount of 15 million euros as a shareholder. Philip Janssen (CFO of SCW Systems) and Jeroen Junge (senior investment manager at Invest-NL) are working together to make a large-scale impact.

Jeroen sees many funding requests from various companies in his role. He talks about four main reasons why the application from SCW Systems stood out: “The innovative method of producing sustainable gas, which has great potential in terms of scalability and flexibility regarding the raw material used and the final gas. Additionally, the possibility of a strong consortium of partners PGGM and Gasunie, which provides a solid foundation both technically and financially. We also noticed that SCW Systems has a passionate team composed of experienced individuals with a solid background. And finally, the fact that the company considers making an impact one of their core business principles. For us, this was enough reason to seek collaboration.”

Philip: “Invest-NL has a long investment horizon and can invest significant sums. Therefore, Invest-NL is a logical partner for us because the scaling-up of our technologies requires substantial capital and takes time to mature. With Invest-NL as a shareholder, we have created a stable environment for long-term growth and focus on proving and scaling our impact. Although, 'stability' is a relative term for a scale-up, especially for SCW Systems.”

Philip and Jeroen have been discussing the collaboration for some time. Philip: “You could say that the transaction has been carefully prepared while waiting for the right moment to allow Invest-NL to become a shareholder. I experience the collaboration with the people from Invest-NL and especially with Jeroen as very professional. You build a relationship together. And that sometimes involves tough conversations and discussions during negotiations and structuring. This has allowed us to work well on mutual trust, creating a solid foundation to discuss difficult topics with complete transparency. Jeroen is professional and businesslike in the way he executed the transaction. At the same time, there was room to also get to know each other on a personal level. Essential if you want tocommit to each other over a longer period.”

Jeroen: “That good feeling is mutual. I have always experienced the collaboration with both Philip and the other staff of SCW Systems as pleasant. There is an open attitude and mutual respect. Where there are differences of opinion, both sides have the willingness and commitment to reach an agreement on what is the right way forward for both parties.”

“It is wonderful to see how the people of Invest-NL are intrinsically motivated to make an impact in the energy transition. There is a click with SCW Systems there. We are also driven by a strong ambition to make an impact and have a steadfast belief in the realizability of solutions,” says Philip.

The future of the relationship between Invest-NL and SCW looks promising. Jeroen: “Invest-NL has not only become a shareholder but also a partner in a consortium. That is something that aligns well in the long term with Invest-NL's strategy, focusing on the energy transition.” Philip: “Together, we want to make a significant impact, firstly by reducing the CO2 in our atmosphere and thereby cooling the Earth, and secondly by converting waste streams into circular gases and raw materials. We have even included this as a primary objective in our articles of association, above economic returns and dividend distributions. It's quite remarkable that we could agree on that.”

Philip and Jeroen are deeply involved in their work and the challenges society faces. Philip: “In everything that’s happening now, I feel that we are at a tipping point. There's a lot of attention for sustainability, circularity, and the energy transition. The theme is beginning to shift from niche to mainstream. Every day, more attention and funding flow into these themes. I expect that in 10 years' time, we will look back on this. By then, we will be fully aware that it is not a luxury, but a pure necessity if we are to continue enjoying our Earth together.” Jeroen adds: “A world in which people can live and move freely, increasingly enabled by the technology being developed now. A world where humans and nature come more and more into balance with each other.”