Hydro adopts blockchain for sustainability

With consumers increasingly calling for proven sustainable products, Norsk Hydro has teamed up with fellow Norwegian DNV on a pilot project that utilizes blockchain technology to trace Norsk's low-carbon aluminum from pit to purchase.

An internationally accredited global assurance provider, DNV helps companies manage risks and assure sustainable performance,

Norsk Hydro, which operates across a broad range of market segments for aluminum, energy, metal recycling, renewables, and batteries, has opted to further improve its base in sustainable industries by adopting the decentralized and irrefutable technology known as blockchain.

This blockchain pilot project, launched in collaboration with DNV, will document the minimum 75% recycling of its Hydro CIRCAL aluminum and the low-carbon production of its Hydro REDUXA aluminum.

"We see that our customers and their [DNV] customers request trusted information documenting the footprint from our materials and production," said Bjørn Kjetil Mauritzen, head of sustainability at Hydro. "The aim of the pilot is to test a platform that supports manufacturers and brands to back their sustainability claims with verified data. This will allow them to trace the metal from the factory gates until it reaches the customer."

Hydro has opted to implement the blockchain-powered "Tag. Trace. Trust." service developed by DNV. Allowing anyone to instantly check the validity, data, and authenticity of the product's environmental profile.

"In this way, the aluminum product passport, with its unique digital ID, attached to the product displays key sustainability facts such as low-carbon aluminum and post-consumer scrap content," said Lin Jacobsen Hammer, business development and sustainability manager at DNV.

All of this is made possible through blockchain, which offers all parties involved in a business network a secure and synchronized record of transactions. This digital "ledger" records every sequence of a transaction from beginning to end, offering exceptional security and transparency.

Upon establishing the Tag. Trace. Trust service, the next step will be to review the experience from the pilot to assess how Hydro can better implement the platform to a standardized model, with the ultimate goal of rolling out the platform to as many customers as possible.

"Ultimately this pilot is made possible through the work we have invested in our greener brands in the past years. As a result, we can now explore how new technology can provide the market and the conscious consumer with key data – presented in a way they understand and trust – as a part of our agenda of driving sustainability," added Jørgen Hansson, project lead at Hydro.

According to Hydro, the blockchain-enabled system will provide provenance and responsible production claims by documenting every aspect of the product.

The quality, environmental impact, and sustainability improvements distinctive to the products will be tagged for a future blockchain-based ecosystem, which is expected to create a differentiation in a competitive market increasingly looking for transparency.

The trust and security of this third party-validated ecosystem is built on three factors:

• Each certificate or product passport is equipped with a unique digital identity and therefore traceable.

• Documents equipped with a tag are therefore 100% authentic and unique and safely stored on the blockchain.

• Anyone can easily trace its origin at the source and check authenticity and details on the blockchain.

More about the Tag. Trace. Trust. solution can be read on DNV's website at https://www.dnv.com/services/tag-trace-trust--185867.

Further information regarding blockchain technology and how it provides secure and unalterable tracing can be read at Blockchain provides mining accountability in the January 22, 2020 edition of Metal Tech News.