Saudi chemicals producer SABIC launches blockchain pilot project

Saudi chemicals producer SABIC launches blockchain pilot project
Image Credits: Al-Monitor

SABIC, a Saudi-based leader in the chemicals industry, has launched a pilot project with technology company Finboot, an advanced recycling pioneer in Plastic Energy, and packaging specialist Intraplás to investigate the possible applications of blockchain technology in supporting end-to-end digital traceability of circular feedstock in customer products.

According to a news release from SABIC, Finboot’s MARCO software solution will act as a middleware to track TACOIL produced by Plastic Energy from its recycling process as well as the delivery of this oil to SABIC for conversion into its Trucircle polymers, and finally the delivery of the polymers to Intraplás for conversion into its packaging solutions.

SABIC’s pilot project is the first of its kind in the industry to employ end-to-end blockchain tracing from feedstock production to converter, reducing time and cost and improving data integration for value chain partners. The solution also ensures that the data remains transparent, immutable, and auditable throughout its journey between suppliers, customers, and regulators.

Carlos Monreal, founder and CEO of Plastic Energy, comments: “This pilot has the potential to make a big 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.”

Another key benefit to the project is its ability to validate sustainability proof points and organizations’ environmental, social, and governance (ESG) credentials, which significantly reduces the administrative efforts associated with the certification process of materials and offers a reduced risk of human error.

Waleed Al-Shalfan, vice president of Polymers Technology, and Innovation at SABIC explains: “At SABIC, we have a deep commitment to innovation and technology that can help us to 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 partners both upstream and downstream. Blockchain technology holds exciting potential for the provision of our Trucircle products to customers, and therefore for our commitment to supporting customers in their sustainability ambitions.”

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