Polyamide producer Domo Chemicals (Leuna / Germany; www.domochemicals.com) and engineering plastics producer Covestro (Leverkusen / Germany; www.covestro.com) have partnered with blockchain technology start-up Circularise (The Hague / The Netherlands; www.circularise.com) in a collaborative project to improve traceability and transparency in plastics supply chains. The project, named “Circularise Plastics”, aims to use blockchain technology to set up an open standard for sustainability and transparency within the supply chains.

Domo and Covestro intend to discuss the project, which is still at a very early stage, with customers and look for new partners at the upcoming “K” (www.k-online.com) trade fair taking place in Düsseldorf / Germany on 16-23 October 2019. The Circularise Plastics project has three main objectives:

• Making it easier for suppliers, processors, manufacturers, moulders and brand owners to choose traceable, sustainable and circular materials
• Creating incentives for suppliers and manufacturers to produce traceable, sustainable and circular materials and products
• Providing critical information for reversed logistics and take-back of products, materials and components

For materials suppliers and processors, as well as equipment and mould makers, participation in Circularise Plastics brings increased material value by adding material passports to plastic resin, additives, colourants and any other materials produced, said Burkhard Zimmermann, head of strategy, sustainability and digital at Covestro’s Polycarbonates segment.

Using blockchain avoids the use of a powerful central authority, giving equal rights to all participants, the partners said. Circularise’s protocol enables trusted data exchange in fragmented supply chains without public disclosure of datasets or supply chain partners. This means that confidentiality and competitive advantage are maintained.

“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 Alex Segers, CEO at Domo. Achieving a single standard for traceability to origin would enable the industry to take responsibility for and communicate about sustainability practices and attach proof of origin to materials, he added.

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 centralised authority (such as a verifying party) to many decentralised, anonymous participants,” said Mesbah Sabur at Circularise.

The Circularise Plastics concept involves 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 (plastics producer/moulder), the OEM can access important information and make statements accordingly. The open protocol enables the establishment of an industry standard, and Circularise’s “smart questioning” technology safeguards privacy while allowing for transparency, the partners explained.