German plastics companies Covestro and DOMO are piloting a blockchain solution with Dutch startup Circularise for plastic traceability and allowing a circular economy. The companies first commenced operating together back in October 2019 and described the blockchain platform at CES 2020.

The blockchain platform generates a digital version of plastic materials based on audited documents and allows end-to-end traceability and provenance. The aim is to track plastics from generation to molders to OEMs and brand owners.

In the initial step of the process, the plastics resin’s certificates and audit reports will be registered by the blockchain. In the next stage, where a product is produced, the solution will trace what additives are utilized and file the ‘bill of materials.’ Finally, a brand owner will be capable of proving the provenance details of the manufactured plastic utilized in the final product.

Throughout the supply chain, the solution utilizes identifiers like QR, RFIDs, chemical tracers, NFC, and DNA to track the plastic.

Covestro, with incomes of $16 billion, manufactures polymer materials, while DOMO Chemicals is a polyamide supplier. The two formed a consortium with Circularise to start the Circularise PLASTICS initiative.

“The value of having this standard developed by the industry, instead of just one or two companies is in avoiding a powerful central authority and giving equal rights to all participants,” said Thomas Nuyts, Director of Global Product Management at DOMO in a statement.

Startup Circularise is leveraging blockchain to facilitate transparency and interaction amongst industry associates to allow a circular economy. One phase of its solution is its Smart Questioning technology, which uses Zero-Knowledge Proofs to enable communication without sharing information, identity, or position in the supply chain. For instance, someone can ask the possibility of whether or not a product comprises mercury without discovering all the suppliers in the chain.

Circularise granted the plastic traceability solution to BASF and Stanley, Black & Decker as part of their Circularity Challenge. The company was the only software firm to make it to the final stage amongst 100 other competitors.

“For OEMs and 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,” stated Burkhard Zimmermann, Head of Strategy, Sustainability and Digital, Covestro Polycarbonates in a statement. Earlier this year, BASF revealed its reciChain blockchain pilot project for recycling plastics. Meantime, Dell Technologies and its subsidiary VMware have produced a trace and track solution for recycled packaging material.