Green Token by SAP Is a blockchain solution aimed at providing raw material traceability for recycling purposes.Major Japanese chemical manufacturer DIC Announced plans to pilot with SAP blockchain solutions including recycling plastic input. However, GreenToken usage examples are not limited to plastics.
“Consumers are highly aware of the circular economy, which has increased the demand for sustainable packaging,” said Yuji Morinaga, Executive Officer and General Manager of DIC’s Packaging Materials Products Division. “Working with GreenToken helps demonstrate our commitment to the environment, promotes plastic recycling, and supports our mission to build a closed-loop recycling system that employs chemical recycling.”
What is SAP’s Green Token?
Something you may not notice is that when you buy a product that says it is recycled, it may only be semi-recycled. Suppose a company manufactures 1,000 items and 30% of the raw material input is recycled. In that case, if you are using the mass balance accounting method, 300 of the 1,000 items produced as recycled will be labeled.
Some people Mass balance methodology It is controversial when implemented in a particular way.
New plastics are often made from a mixture of sustainable pyrolysis oil and crude oil that is recycled. Because the two inputs are chemically similar, pyrolysis oil can be used. However, figuring out what percentage comes from recycled raw materials can be very difficult after the fact. Manufacturers know that they need 3 tonnes of raw material to produce 4 tonnes of final product.
Therefore, the idea of using GreenTokens as a digital twin of raw materials in the manufacturing process is to achieve accountability and transparency. Perhaps auditability is just as valuable.
GreenToken may contain parameters that are specific to a company’s production process, such as the conversion factor from raw materials to the next output stage. Details of these types can be kept private. However, when the output is passed to the next company in the supply chain, it may carry information about its origin, carbon footprint, and percentage of recycled materials.
Previously, GreenToken was used in plastics that recycle proof-of-concepts, including BASF, Mitsubishi Chemical, and SCG Chemistry.
This solution uses the Quorum enterprise blockchain.
DIC manufactures polystyrene for food packaging and has an existing recycling system that returns used polystyrene containers to styrene monomer, the precursor of polystyrene. GreenTokens are used to track products throughout the recycling process and supply chain.
in the meantime, Plastic recycling This is a common use case for blockchain. Many of the solutions use chemical markers to create digital twins with startups such as: Circulation, Security issues When Circular..