Article / 4 Dec 2025

The value of IP in commercialising green chemistry

As efforts to reduce the environmental and health impacts of chemical products and processes intensify, green chemistry has emerged as a crucial discipline for industry. Here, we explore why the journey from invention to real-world impact often relies on effective IP-based commercialisation strategies and provide some examples of companies that are already using their IP portfolios to great effect.

From bio-based chemical production processes, to enzymes for recycling plastic, green (or sustainable) chemistry is already demonstrating transformative potential in reducing the environmental impacts of chemical products and processes.

Getting these innovations to market requires more than scientific skill, however. In fact, the journey from invention to real-world impact often relies on effective commercialisation strategies based on a business’s intellectual property (IP).

  • Why is protecting IP important in green chemistry?

    Managing and protecting IP are at the heart of any commercialisation strategy, whether that is via patents, trade secrets, copyright, or trade marks. Securing such protection, not only safeguards discoveries, but also incentivises investment and ensures that businesses can realise the full potential of their innovations.

  • Why is IP an “essential tool” for Novonesis?

    Bio-solutions developer Novonesis (formerly Novozymes) has collected around 10,000 patents and 8,000 trade marks globally since initiating patent filings in 1989, with vice-president of IP and licensing Iben Haasum stating the company “see[s] patents and other IP rights as essential tools to strengthen our global competitiveness and to maintain our aspirations and passion for innovation.”

    Managed properly, IP can help businesses to:

    1. Protect innovation. IP rights (particularly patents) can act as legal ‘shields’ that prevent competitors from copying novel methods, compositions or processes without permission. Many global businesses have portfolios of hundreds, if not thousands, of patents.
    2. Develop new revenue streams. IP rights are tradeable assets. Businesses can generate revenue by licensing the IP to a larger company, or by selling the entire IP portfolio.
    3. Enhance value. For SMEs in particular, IP may be the only asset they have. By using this IP strategically, SMEs can increase their valuations and attract potential buyers.

  • How can green chemistry businesses commercialise their IP?

    Green chemistry businesses have two key options when it comes to bringing their innovations to market, each with its own benefits and challenges.

    The first option is to vertically integrate IP. This essentially means that a business establishes its own manufacturing lines and uses the innovations itself. This approach has been taken by companies such as Solugen, which has built its own facilities for the production of hydrogen peroxide using bio-based processes. 

    Whilst this allows a business to maintain greater control over quality, engage with the market directly, and build its brand, it also requires significant investment and could expose the business to operational and financial risks.

    The second option is for a business to license its IP to another business. This means that another organisation can use, produce, or sell the IP in exchange for royalties or lump-sum payments. 

    Licensing agreements can also be structured to reflect the territorial nature of IP rights. A common practice for academic spinouts, for example, is to grant exclusive rights to a European partner, whilst licensing to multiple businesses in Asia.

Licensing PET bio-recycling technology

In April 2023, CARBIOS, a specialist in the design and development of enzymatic processes for end-of-life plastics and textiles, announced that its PET bio-recycling technology was ready for global commercialisation following successful operations in its demonstration unit in Clermont-Ferrand.

As part of any licensing agreement, the company would provide all the necessary process documentation to allow licensees (such as PET producers and chemical companies) to engineer, construct and operate their own PET bio-recycling plants.

  • What are the benefits of licensing green chemistry IP?

    1. Wider reach. By licensing its technology to established manufacturers, a green chemistry business can ensure that its innovations reach international markets more expeditiously.
    2. Reduced risk. Licensing allows green chemistry businesses to avoid the capital expenditure and operational risk that are often associated with scaling business operations. Instead, the business essentially scales via the licensee, which will often have existing manufacturing capabilities and greater access to capital, whilst still receiving revenue through royalties.
    3. Focusing on R&D. Where capital is not required to scale operations or develop manufacturing facilities, it can be re-invested in research and development. This is a popular strategy for IP that is developed via universities and academic research.

Licensing university-developed carbon capture technology

In 2021, Honeywell established a licensing agreement with Texas Carbon Management Program Group at the University of Texas in Austin (UT Austin) for its proprietary advanced solvent technology.

This agreement allowed Honeywell to expand its portfolio of carbon capture technology and provide a lower cost, highly efficient method of carbon capture for power, steel, cement, and other industrial plants.

  • How can I find a licensing partner?

    Identifying and engaging a suitable licensing partner is a strategic process that can determine whether a technology’s commercialisation is even successful.

    In our experience, industry conferences provide a good starting point for meeting potential licensees, as do relevant business development networks, such as those targeting university research.

    Online platforms, such as those available via the World Intellectual Property Organisation (WIPO), are also useful ways in which to connect licensors and potential licensees.

    This is not a process to undertake alone, however. Professional advisers, such as IP consultants, technology transfer offices, legal professionals, and commercialisation specialists, will provide invaluable guidance and support on both selecting a partner and negotiating a deal.

    Most importantly, professional advisers will be able to ensure that a green chemistry business’s interests are protected at the negotiation table. This is because they understand the factors that will influence the perceived value of an IP-based asset and ensure that the business ultimately walks away with the best deal possible, without ‘leaving money on the table’.

Expanding renewable BDO production to Southeast Asian markets

In 2015, BASF expanded the scope of its licensing agreement with Genomatica for the production of 1,4-butanediol based on renewable feedstock (renewable BDO). Renewable BDO is comparable in quality to petrochemical-based BDO and is used for producing plastics, solvents, electronic chemicals, and elastic fibres.

Originally focusing on North America, the licensing agreement would now allow BASF to target certain countries in Southeast Asia, build a production facility using Genomica’s patented process, and produce up to 75,000 tonnes of renewable BDO a year.

Contact an expert

Commercialising green chemistry IP depends, not only on scientific excellence, but also on strategic IP management and licensing knowledge.

Through robust protection, comprehensive commercialisation strategies, and professional guidance, green chemistry businesses can ensure that the discoveries they make in the laboratory become the solutions that are adopted globally, catalysing industry-wide change and enabling a more sustainable future.

To discuss the issues raised in this article, please contact an expert below or a member of our specialist team.

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