Polyamides specialist Domo Chemicals and polymer supplier Covestro AG have teamed up with a Dutch start-up called Circularise on a new collaborative project for circularity in the plastics industry based on blockchain technology.
The newly formed Circularise Plastics project group aims to set up an open standard for sustainability and transparency within plastics and will be highlighted both by Domo and Covestro at K 2019, later this month.
Netherlands-headquartered tech company Circularise uses blockchain and zero-knowledge proof in order to bring transparency and communication to global value chains. Their protocol enables trusted data exchange in fragmented supply chains without public disclosure of datasets or supply chain partners.
Unlike other blockchain transparency solutions, Circularise’s technology, called “smart questioning”, protects a company’s privacy and sensitive information, meaning that confidentiality and competitive advantage are always maintained.
The technology also eliminates the need to trust a centralised party.
“Because all of the verification is done by the system itself, the idea is that users do not need to rely on a central point of control. Instead, trust is transferred from one centralized authority (such as a verifying party) to many decentralised, anonymous participants,” according to Mesbah Sabur at Circularise.
In a 3 Oct statement, the three partners announced that Circularise Plastics is an open protocol concept involving a seven-step process whereby the source material can be followed through a blockchain pathway, ensuring end-to-end product traceability and provenance.
If ultimately accepted by the original information holder (plastic producer/moulder), the OEM can access important information and make statements accordingly.
The solution offers two basic main advantages over other initiatives. The open protocol will enable an industry standard (on any blockchain) and avoid monopoly. The Smart Questioning technology safeguards privacy, while still allowing for transparency.
“Registries and tracking systems are key to assessing progress towards global circularity goals. Blockchain can bring transparency where it's most needed, especially when it comes to supply chain traceability in our industry,” said says Alex Segers, CEO at Domo.
According to Segers, achieving a single standard for traceability to origin would enable the industry to “responsibilise and communicate” sustainability practices and attach proof of origin to materials.
The project pursues the three objectives of:
• Choose Circular: Make it easier for suppliers, processors, manufacturers, molders and brand owners to choose traceable, sustainable and circular materials.
• Produce Circular: Create incentives for suppliers and manufacturers to produce traceable, sustainable and circular materials and products.
• Make Circular: Provide critical information for reversed logistics and take back of products, materials and components.
“For material suppliers & processors, as well as equipment & mould-makers, Circularise Plastics participation means increased material value and trust in your production, by adding material passports to plastic resin, additives, colorants and any other materials produced.
“For OEMs & brand owners, it helps on the road to achieving sustainability targets and a strengthened brand position, by revealing a product’s origin and transparency on its environmental impact,” explained Burkhard Zimmermann, head of strategy, sustainability and digital at Covestro´s polycarbonates segment.
The Circularise Plastics project, according to the partners, is at a very early stage and the objective at K 2019 is to raise interest among value chain partners who are willing to join the consortium in the ideation and testing phase.
Domo, Covestro launch plastic blockchain project
Domo