PepsiCo Labs has announced it will collaborate with six startups to promote sustainability in its European supply chain. One of these startups, Security Matters, uses blockchain technology to identify, sort and pack waste. PepsiCo will use Security Matters’ invisible marker system in waste sorting to track closed loop recycling and verify sustainability claims.
Security Matters is a startup focusing on traceability in recycling and the circular economy. It has developed a blockchain-powered recycling conveyor that identifies plastics during the recycling process using its chemical marker. The marker allows a digital twin to be stored on a blockchain network, which enables product identification and traceability.
The company has some high profile partnerships. It secured a joint venture with government-owned Perth Mint to track the production and authenticity of gold and was part of the BASF reciChain blockchain pilot for recycling plastics.
On top of these collaborations, Security Matters has just announced a NASDAQ SPAC listing. The SPAC deal valued the company at $200 million, 14 times its valuation on Australia’s ASX stock market the day before.
Such a meteoric rise is unusual, especially considering its 2021 accounts showed zero revenue. However, SPAC investors have the right to ask for their money back, which could mean that the final deal values the company at significantly less. Today’s ASX stock price is 2.5 times the pre-SPAC announcement figure.
Security Matters is far from alone in this industry. Other blockchain startups like Everledger and Circulor have been on the rise for a while. Circulor recently secured $25 million funding and Everledger has partnered with Source Certain International (SCI) to improve transparency in the mining industry. Netherlands-based Circularise is involved in plastics traceability and has secured partnerships with big names like Porsche and Mitsubishi.
Even established multinational companies are tapping into blockchain technology. IBM, Mitsui Chemicals and Nomura Research have started a plastic recycling blockchain consortium. Japanese chemical manufacturer DIC is conducting a pilot with the SAP blockchain solution involving the recycling of plastics. Meanwhile, Fujitsu and Tejin are collaborating to trace recycled industrial materials using blockchain technology.
