SABIC explores blockchain solution to increase traceability of circular raw material | Article
SABIC has established a consortium blockchain project with the aim of creating further transparency and digital traceability for its TRUCIRCLE raw material solutions, in collaboration with the technology company Finboot, advanced recycling company Plastic Energy and packaging specialists Intraplás.
The pilot project is aimed at investigating the possibilities of blockchain technology to support end-to-end digital traceability of so-called circular raw material in customer products. The companies say that it is currently a difficult task to track the raw material’s journey through the petrochemical value chain.
SABIC claims that its blockchain-based, value-chain IT solution, which will focus on its TRUECIRCLE portfolio of raw materials certified as circular by Net Zero Plastics, will be the first project of its kind in the industry to track the product from raw material production to a converter. . The company adds that the platform will offer reduced costs and time, as well as improved data integration for all value chain partners.
In addition, SABIC says that blockchain technology will be able to validate sustainable security points and organizations’ ESG credentials. The company explains that this will benefit all members of the value chain, including external parties, as it reduces the administrative effort associated with the certification process of materials while at the same time being a more reliable process due to reduced risk of human error.
Waleed Al-Shalfan, Vice President of Polymer Technology and Innovation at SABIC, comments: “Our vision of creating a circular economy for plastics requires a total transformation of the value chain, and groundbreaking partnerships with partners both upstream and downstream.
“Blockchain technology has an exciting potential for delivering our TRUCIRCLE products to customers, and therefore for our commitment to supporting customers in their sustainability ambitions.”
As part of the consortium, Finboot’s MARCO software solutions apparently act as an intermediary layer and will track TACOIL produced by Plastics Energy from their recycling process, delivery of this oil to SABIC for conversion to TRUCIRCLE circular polymers, and finally delivery of the polymers to Intraplás for conversion to their packaging solutions.
The companies claim that this technology ensures that all data collected remains unchanged while being shared across suppliers, customers and regulators. This provides transparency, audibility and accountability in a complex industrial ecosystem, according to the companies.
Juan Miguel Pérez Rosas, CEO of Finboot, adds: “We are pleased to undertake this pilot as it will make a significant contribution to the development and progression of a circular economy, while being an example of global best practice. the manufacturing sector. “
Marisa Alves, Purchasing Manager at Intraplás, says: “As a global supplier 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. our supplier and long-term partner SABIC.
“The blockchain technology project will further enhance our goals, as it will help us improve performance, create further transparency for the supply chain and promote digital traceability of our certified circular packaging.”
Carlos Monreal, Founder and CEO of Plastic Energy, concludes: “This pilot has the potential to make a huge impact on the value chain, providing a new level of traceability and transparency for recycled plastics, demonstrating how advanced recycling can be valuable. in the circular economy of plastics. “
