Inside edition 3 of the Circular Factory Program: unlocking your Feedstock potential

For entrepreneurs in the circular economy, sourcing, processing and navigating the regulations around feedstock is often one of the most complex and critical challenges. Ensuring a stable supply of raw materials, managing quality and effectively integrating technology into the production process are essential for success. Transitioning from lab-scale to demo production adds another layer of complexity, where decisions around automation, partnerships and co-siting can determine whether a business scales efficiently or struggles to move forward.

Morning session: navigating the feedstock legislation maze

The day began with a series of expert talks that tackled the intricate realities of feedstock in a circular economy. From sourcing and quality assurance to the maze of legislation surrounding waste streams and permits, participants gained critical insights into this foundational pillar.

Key points from the morning included:

• Waste or resource? Experts emphasized that a feedstock’s waste status is determined by what comes in (feedstock), not what goes out (products). This regulatory distinction has significant implications for circular businesses.
• Strategic partnerships: Participants learned the importance of securing Letters of Intent for both product buyers and feedstock suppliers to ensure consistent supply and demand.
• Leveraging local knowledge: Engaging local governments and co-siting with waste processors (aka feedstock providers) can reduce permitting complexity and leverage existing expertise. Engaging local authorities with your plans as soon as possible is key to avoiding delays.

Key take-away: Regulations can seem overwhelming, but having the right team—whether an internal expert or an external partner—can make navigating these challenges more manageable. A big thank you to the experts involved, all part of the Circular Factory ecosystem, who offered to be on standby to provide the participants additional support during their journey.

Afternoon site visit: lessons from PeelPioneers

After a morning of theoretical insights, the group traveled to PeelPioneers, a pioneering circular startup turning citrus peel into food ingredients. Co-founder Sytze van Stempvoort shared their journey, from starting with a €1 million plant to scaling operations to handle 50,000 kilos of peel daily. His presentation was filled with invaluable lessons and knowledge bombs on building a minimum viable plant (MVP) and navigating the challenges of scale.

Key learnings from Sytze included:

• Focus on scoping your MVP right. In the early days, identify what you need to prove and only invest in what gives you a competitive advantage.
• The power of co-siting: Sharing a site with your feedstock supplier not only eases permitting but also streamlines logistics. For their first factory, PeelPioneers co-sited with a waste processor.
• Plan automation and process flows thoroughly: Transitioning from lab-scale to commercial production should not be underestimated. In a lab, everything is done manually, but in a factory, ensuring smooth flow of feedstock and semi-finished products through the system is crucial.
• Engage Original Equipment Manufacturers (OEMs): Engaging OEMs early on can significantly boost your credibility with governments and investors. Using representative technologies, instead of generic ones (Sytze: “Don’t put an oven from your local Blokker in your production facilities”), helps demonstrate your commitment to quality and scalability.

Critical decision-making in scaling up

As the day wrapped up, the conversation shifted to broader strategic decision-making in scaling circular factories. Lindy Hensen, co-initiator of the Circular Factory-program, emphasized the importance of evaluating what to handle in-house and what to outsource. “Lately, investors always ask if ‘capex light’ is a possibility. Think critically about what to do in-house and what can be outsourced. Do you really need your own factory in the beginning?” By carefully evaluating your needs and partnering with the right players early on, founders can save valuable resources and reduce risk.

After a full day of theoretical insights, practical examples and peer-to-peer learning, the participants were provided with the tools and inspiration to work on the Objective Key Results (OKRs) when it comes to feedstock. It means they are one step closer to their tailor-made roadmap towards opening their first factory. 

Next up is our Process design & technology development Deep Dive Day. Stay tuned for another update. In the meantime, check out the profiles of the participants and learn more about their stories.

The third edition of the Circular Factory program is made possible thanks to our financial partners: Gemeente Rotterdam, Stichting Ondernemersbelangen Rotterdam, the Rabo Foundation and Invest-NL.