Ekowood Houses: at the forefront of energy transition with sustainable housing construction

Although timber construction is already commonplace in countries such as Germany and Scandinavia, the Netherlands lags behind. Only 3% of new houses here are built of wood. Ekowood Houses uses wood as construction and insulation material and integrates bamboo and a circular dry-stacking system of bricks for sustainable cladding. These bio-based prefab houses, produced in the Ekowood Fabriek in the Netherlands, are gas-free, heated with infrared technology and up to 60% less polluting than traditional houses.

As a fast-growing scale-up, Ekowood Houses had a clear need: a financing solution that both supported their sustainable mission and provided growth space to increase their impact. However, finding investment on attractive terms proved challenging. Besides working capital for production expansion, they were looking for a strategic financing partner that was willing to invest in their revolutionary building method and shared their long-term vision.

Herbert Beldhuis, startup & scale-up banker at Rabobank, played a driving role in facilitating Ekowoods Houses' growth path. According to Beldhuis, Ekowood Houses stood out because of their unique approach and clear market traction; a ‘game changer’ in the still relatively traditional construction sector. 'The construction sector accounts for 11% of global carbon emissions. Innovations like Ekowood Houses are therefore essential to meet regulations and climate targets. We also need 300,000 houses a year to reduce housing shortages. The biobased concept and the circular approach fitted perfectly with Rabobank's vision to accelerate energy transition and reduce carbon emissions.' In addition, major market players and investors saw the potential of Ekowood Houses. This can be seen, for instance, in the Switi project in Amsterdam. 'The concept was really seen by shareholders and parties from the building chain as the egg of Columbus. Market demand exploded, partly because of the unique and sustainable concept that stood as a house. Their order book kept growing, and that gave us the confidence to step in,' says Beldhuis.

Beldhuis explains further: ‘In the first phase, we looked at a financing structure in the form of a loan that suited their innovative nature. As growth accelerated, more working capital proved necessary. The Rabo Transition Fund offered a solution in early 2024.' This fund, established on Rabobank's 125th anniversary, supports sustainable frontrunners with favourable subordinated loans as leverage for additional financing. Herbert: ‘This is how we give startups and scale-ups a boost. For Ekowood Houses, this made their ambitions achievable without compromising on their long-term strategy. 'We want to build a long-term relationship with Ekowood Houses, so we have always thought along in the company's interest. With our Startup & Scale-up Team, we have a broad overview of funding solutions and know the landscape. So we always look for the best-suited financing solution for the customer. That has worked out: the company can continue to grow with a healthy foundation.'

Are you an entrepreneur with a sustainable mission and growth ambitions? The Rabobank Startup & Scale-up Team is ready for you. Discover how we can increase your impact with knowledge, network and financial solutions such as the Rabo Transitiefonds. We also offer innovative financial products such as the Rabo Impactlening and the Rabo Groen Lening.

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