The Saudi Arabia-based chemical manufacturer said its recently launched blockchain pilot will explore the potential of the technology “in supporting end-to-end digital traceability of circular feedstock in customer products.” Expected benefits from using blockchain include cost and time reduction as well as better data integration.
End-to-End Digital Traceability
Saudi Arabian chemical manufacturer, Saudi Basic Industries Corporation (SABIC), recently said it has launched a blockchain pilot project together with technology company Finboot. According to the chemical producer, the aim of the pilot is to “investigate the possibility of blockchain technology to support end-to-end digital traceability of circular feedstock. [raw materials] in the customer’s product.”
In a press statement, SABIC said the current process of tracking the journey of raw materials is made difficult by the complex petrochemical value chain. Therefore, through the pilot, SABIC, which is 70% owned by the Saudi Arabian oil giant Aramco, plans to “track products from the production of raw materials to [the] converter, is more advanced than previous blockchain industry applications in the last tracking.
The blockchain pilot is expected to reduce costs and time, as well as improve data integration, the statement said. The company also hopes the pilot will help reduce the administrative effort associated with the materials certification process.
Blockchain potential
In comments after the pilot launch announcement, Waleed Al-Shalfan, vice president of Polymer Technology & Innovation at SABIC said:
At SABIC, we have a deep commitment to innovation and technology that can help us provide our customers with more sustainable solutions. 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 has exciting potential to provide customers with TRUCIRCLE products, and therefore to commit to supporting customers in their sustainability ambitions.
Juan Miguel Pérez Rosas, CEO of Finboot, said the pilot will “contribute to the development and progress of the circular economy.”
According to the press statement, the MARCO Finboot software will be used as a “middleware layer” that tracks the products from Plastic Energy that are produced, until they are sent to SABIC for conversion into Trucircle round polymers. Shipments of round polymers to Intraplás “for conversion into packaging solutions” will also be tracked.
During the process, the technology will ensure the immutability of all collected data that must be distributed to suppliers, customers, and regulators. This, according to the press release, provides “transparency, auditability and accountability in a complex industrial ecosystem.”
What do you think of this story? Let us know what you think in the comments section below.
Image Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused or related to the use of or reliance on the content, goods or services mentioned in this article.
