Tracing the raw material’s journey through the complex petrochemical value chain from plastics is a difficult task. To improve this process and support the delivery of its circular raw material to customers, Sabic has launched this pilot project to demonstrate the feasibility of using a blockchain-based, value chain IT application.
Part of Sabic’s TruCircle portfolio and services, the project is the first of its kind in the industry to track product from raw material production to converter, going beyond previous industry applications of blockchain in end-to-end tracking. The platform offers reduced costs and time and improved data integration for all value chain partners.
Another key benefit of blockchain technology in the delivery of more sustainable solutions lies in its ability to validate sustainability proof points and organizations’ ESG credentials. This is of significant benefit to all members of the value chain, including external parties, as it reduces the administrative effort associated with the certification process of materials. It is also a more reliable process, due to the reduced risk of human error.
Waleed Al-Shalfan, Vice President Polymers Technology & Innovation at Sabic, says: “At Sabic, we have a deep commitment to innovation and the development of technology that can help us deliver more sustainable solutions to our customers. Our vision of creating a circular economy for plastics requires a total transformation of the value chain, and pioneering partnerships with partners both upstream and downstream. Blockchain technology has exciting potential for the delivery of our TruCircle products to customers, and therefore for our commitment to supporting customers in their sustainability aspirations.”
All data collected through blockchain remains immutable while shared across suppliers, customers and regulators.
Finboot’s MARCO software solution acts as a middleware layer and will track the TACOIL produced by Plastic Energy from their recycling process, the delivery of this oil to SA Sabic BIC for conversion into TruCircle circular polymers, and finally the delivery of the polymers to Intraplás for conversion into their packaging solutions. The technology also ensures that all data collected remains immutable as it is shared across suppliers, customers and regulators – providing transparency, auditability and accountability in a complex industrial ecosystem.
Juan Miguel Pérez Rosas, CEO of Finboot, comments: “We are delighted to embark on this pilot, as it will contribute significantly to the development and progression of a circular economy, while being an example of best practice for the global manufacturing sector. Sabic is at the forefront of its industry, always looking to the future and investing in technology and innovation to accelerate its digital transformation supporting the circular economy.”
Marisa Alves, head of purchasing at Intraplás, adds: “As a global provider of packaging solutions, Intraplás has the clear ambition to make sustainable packaging widely available to the market, without compromising the environment and food safety, which increased participation in this. important project with our supplier and long-term partner Sabic. The blockchain technology project will reinforce our goals even more, as it will help us improve performance, create additional transparency to the supply chain and promote digital traceability for our certified circular packaging. This is an Intraplás contribution , through more concrete sustainable solutions, to a real circular economy.”
Carlos Monreal, founder and CEO of Plastic Energy comments, “As a company that has developed our own innovative technology, we at Plastic Energy are excited to explore the possibilities that new technologies such as blockchain can offer. This pilot has the potential to make a great impact in the value chain, providing a new level of traceability and transparency for recycled plastics, and demonstrating how advanced recycling can play a valuable role in the circular economy of plastics.”
