A Saudi Arabia-based chemical manufacturer has said its recently launched blockchain pilot is expected to uncover the possibilities of the technology “in supporting end-to-end digital traceability of circular feedstock in customer products.” The benefits expected to accrue from using blockchain include reduced costs and time as well as improved data integration.
Digital traceability from end-to-end
Saudi Basic Industries Corporation (SABIC) recently revealed that they had started a pilot project using blockchain technology in collaboration with Finboot, a Saudi Arabian-based chemical producer. According to the chemicals producer, the objective of the pilot is to “investigate the possibilities of blockchain technology in supporting end-to-end digital traceability of circular feedstock [raw materials] in customer products.”
SABIC released a statement saying that it is difficult for feedstock to be traced due to the intricate petrochemical chain. Therefore, through the pilot, SABIC, which is 70% owned by Saudi Arabia’s oil giant Aramco, plans to “trace the product from feedstock production to [the] converter, going further than previous industry applications of blockchain in end-to-end tracing.”
It is anticipated that the blockchain pilot will reduce cost and time as well as increase data integration. Additionally, the company hopes that the pilot will lower administrative tasks related to certification.
Blockchain has the potential to unlock new opportunities
In remarks following the announcement of the pilot’s launch, Waleed Al-Shalfan, the vice president of Polymers Technology & Innovation at SABIC said:
SABIC is committed to innovation and technological advancements that will help us deliver better solutions for our customers. To create a circular economy in plastics, we need to transform the entire value chain and forge new partnerships upstream and downstream. The potential of blockchain technology is exciting for providing our TRUCIRCLE products and for supporting our customers’ sustainability goals.
Juan Miguel Pérez Rosas, CEO of Finboot, said the pilot will “contribute to the development and progression of a circular economy.”
According to the press statement, Finboot’s MARCO software will be used as a “middleware layer” that tracks the product from Plastic Energy where it’s produced, to its delivery 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.
The technology will protect all data collected throughout the entire process and ensure its immutability. This includes information that is sent to customers, suppliers, regulators, or other parties. This, according to the press statement, provides “transparency, auditability and accountability in a complex industrial ecosystem.”
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