Event highlight: Power Session 1 on Bankability of FOAK Power-to-X projects
02-04-2026
First Power Session of VoltaChem was organised on the 10th of March at the KIVI, The Hague. With almost 70 attendees, the focus of this session was on the Bankability aspects of large FOAK Projects.
This session, hosted at the Royal Society of Engineers in The Hague, marked the first VoltaChem Power Session of the year, focusing on the bankability of first-of-a-kind (FOAK) power-to-X projects. The event brought together project developers, financiers, and policymakers to discuss the unique challenges and opportunities faced by innovative scale-ups in Europe, particularly those aiming for sustainable chemicals and fuels.
The event was chaired by VoltaChem Business and community lead Monalisa Goswami. She emphasised VotlaChem’s role as an international network connecting valuechain players from feedstock suppliers to end users and OEMs, aiming to address the complexities of the power-to-X value chain. VoltaChem creates a trusted space for sharing experiences, co-creating projects, and staying ahead of industry developments.
Martijn De Graaff, business director of industrial transformation at TNO, reflected on the sector’s evolution over the past decade. He noted the shift from idealism and opportunism to a more pragmatic, realistic phase, with tangible FOAK plants being built globally.
2 Panels on challenges faced by FOAK developers as well as challenges faced by financiers in financing these projects
Building on the TNO report on Bankability of First of A Kind (FOAK) projects, this event pin-pointed risks and challenges faced by developers. It spans across technology uncertainty, market volatility, regulatory issues, and limited track records, which often hinder access to traditional financing. The panel identified critical risks across the value chain: feedstock supply contracts, technology guarantees, ramp-up optimisation, and offtake agreements with creditworthy partners. Residual risks, which cannot be fully allocated or mitigated, remain a major barrier to institutional financing.
“You have to start talking each other's language and there I think all kinds of communities or networking events are very important. Specifically when it's more topical and you can make a step actually and also developing relations and project ideas that of course, outside of the room will develop further between partners.”
- Jeroen Kelder, Partner, Infinity Recycling
Financiers explained their requirements for stable, long-term cash flows and robust contracts. Offtake agreements are especially vital, yet difficult to secure, given the reluctance of buyers to commit to fixed prices over extended periods. Creative solutions, such as forming strategic alliances and collaborating across the value chain, are increasingly necessary to manage perceived and actual risks.
Panel discussions also covered regional differences in policy and market incentives, such as Canada’s strategic autonomy and green power pricing, the Netherlands’ green gas blending obligations, and the UK’s revenue certainty mechanisms. These policy instruments and government support are crucial in unlocking project finance and advancing the green transition.
Launch of the Bankability Accelerator:
The event concluded with the formal launch of a Bankability Accelerator Programme offered by TNO and Nyenrode University. The Bankability Accelerator aims to provide a tailor-made program to bridge information gaps (technology and market) for all parties around the table who are in a position to finance such large FOAK projects but might not yet be well-versed with the specific technology and valuechains and associated risks. TNO and Nyenrode as organisations are perferctly positioned to play a role in providing this support because of their independent nature and deep expertise on technologies as well as financing mechanisms.
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