A Saudi Arabia-based chemical manufacturer said its recently launched blockchain pilot project is expected to uncover the technology’s possibilities “to support end-to-end digital traceability of circular raw materials in customer products.” Expected benefits of using blockchain include reduced costs and time as well as better data integration.
End-to-end digital traceability
A Saudi chemical manufacturer, Saudi Basic Industries Corporation (SABIC), recently announced that it has launched a blockchain pilot project in collaboration with technology company Finboot. According to the chemical producer, the objective of the pilot is “to investigate the possibilities of blockchain technology to support end-to-end digital traceability of circular raw materials. [raw materials] in customer products. »
In a press release, SABIC said the current process of tracing the journey of raw materials is made difficult by the complex petrochemical value chain. Therefore, through the pilot project, SABIC, 70% owned by Saudi oil giant Aramco, plans to “trace the product from raw material production to [the] converter, going further than previous industrial blockchain applications in end-to-end tracing.
The blockchain pilot is expected to reduce costs and time, as well as improve data integration, according to the statement. The company also hopes that the pilot project will help reduce the administrative effort associated with the materials certification process.
Blockchain potential
In remarks following the announcement of the pilot launch, Waleed Al-Shalfan, Vice President of Polymers Technology & Innovation at SABIC said:
At SABIC, we have a deep commitment to innovation and technology that can help us deliver more sustainable solutions to our customers. Our vision to create a circular economy for plastics requires a total transformation of the value chain and pioneering partnerships with upstream and downstream partners. Blockchain technology holds exciting potential for delivering our TRUCIRCLE products to customers, and therefore for our commitment to supporting customers in their sustainability ambitions.
Juan Miguel Pérez Rosas, CEO of Finboot, said the pilot “will contribute to the development and advancement of a circular economy”.
According to the press release, Finboot’s MARCO software will be used as a “middleware layer” that will track the product from Plastic Energy where it is produced, until it is delivered to SABIC for conversion into its Trucircle circular polymers. The delivery of circular polymers to Intraplás “for conversion into their packaging solutions” will also be tracked.
Throughout the process, the technology will ensure the immutability of all collected data that needs to be distributed to suppliers, customers and regulators. This, according to the press release, provides “transparency, auditability and accountability in a complex industry ecosystem.”
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