MOSCOW (MRC) -- Circularise announced a pioneering joint project with the certification scheme ISCC, material suppliers Neste, Asahi Kasei, Borealis, Trinseo and Shell, original equipment manufacturers (OEMs), brands Arcelik, Philips Domestic Appliances and EVBox, as well as trading companies Marubeni and Itochu, in which partners tested a blockchain system to complement the ISCC Plus certification, said Hydrocarbonprocessing.
These parties were brought together by Circularise and Marubeni. This is the first time that 10 chemical industry players and appliance companies got together to test a blockchain-based digital system as a complement to a sustainability certification process of complex value chains.
Circularise’s blockchain-based digital system was tested with the ISCC Plus certification to make auditing of certified parties more efficient, and to strengthen integrity of certified data. Participants utilized a public blockchain enabling authentication, decentralization and encryption of data verifying material flows and related sustainability attributes. This innovative approach differs from other blockchain projects where companies use a private blockchain operated by pre-selected participants, such as members of a consortium. Instead, Circularise and project partners used a public blockchain, making it virtually impossible for companies to appear more sustainable than they really are by reusing the proof of a sustainability claim across assets. This principle forms the foundation of trust in data integrity.
Material traceability and verification of data at individual sites and across the value chain were guaranteed by ISCC Plus certification of each site of the operators, requiring site-specific audits, certification and mass balance calculations to provide reassurance about the sustainable content. The data was uploaded to the Circularise software system to improve mass balance bookkeeping and reporting.
Currently, the chemical sector is engaged in significant sustainability transformation efforts, including rethinking of the use of raw materials, circularity, and climate impact of operations and entire value chains. This transformation is largely built upon sourcing new, more sustainable feedstocks, while maintaining efficient processes, a viable economy and high credibility.
Certification schemes providing an option to use the mass balance system can facilitate a gradual switch towards increasing the replacement of fossil feedstock and materials with renewable and recycled raw materials, while enabling the use of existing infrastructure and equipment instead of constructing parallel plants and value chains. In the mass balance system, data storage and data integrity are key elements in verifying sustainability and compliance to the certification requirements.
One of the greatest challenges the mass balance approach faces in the plastics and chemicals industries is awareness and understanding. Through this project, the collaborating partners managed to deepen their knowledge on the topic, align internal processes with ISCC Plus requirements, and test a new futureproof way for bookkeeping of mass balance credits, while easily sharing them across organizations. Overall, this allowed value chain actors to better substantiate sustainability claims and improve collaboration. Beyond this project, blockchain technology will play a critical role in complementing supply chain certification to enable certification schemes to simplify the auditing process of supply chain actors, reduce the risk of mistakes and accelerate the sustainable transition.
We remind, Technip Energies has been awarded a significant contract by Neste for the expansion of their renewable products production capacity in Rotterdam, the Netherlands, as part of the existing Partnership Agreement between Technip Energies and Neste. The contract covers Engineering, Procurement services and Construction management (EPsCm) for the expansion of Neste’s existing renewables refinery in Rotterdam which will increase Neste’s overall renewable product capacity by 1.3 MMtpy.