As part the trials, Teijin and Fujitsu will leverage a blockchain-based commercial platform launched in July 2022 to promote the sustainable use of recycled materials, tracing and management of greenhouse gas (GHG) emissions within the environmentally-conscious bicycle industry.

By implementing a business model that maximizes the environmental value from recycled materials, Teijin and Fujitsu aim to contribute to the further development of the carbon fiber recycling market and the realization of a circular economy. Following the successful conclusion of the joint trials, Teijin and Fujitsu will promote the implementation of the new platform, with the aim of commercialization in fiscal 2023.

Background

In Europe, many bicycle manufacturers use frames manufactured in Asia, and many of these frames are also ultimately disposed of in landfills in Asia. Energy consumption during long-distance transportation of resources including materials and used frames across the supply chain represents one major reason why resources are often not recycled and disposed of in a sustainable manner. In order to contribute to the reduction of GHG emissions from its business operations, V Frames utilizes local resources in Germany and recycles used frames in its bicycle production.

Within this joint project, Teijin and Fujitsu will conduct trials together with V Frames and Advanced Bikes to visualize the results of V Frames’ efforts to reduce GHG emissions in its production process, with the aim to foster a shared awareness towards the environmental value of recycled materials within the environmentally-conscious bicycle industry and industries handling carbon fibers.

Outline of the joint trials

1. Purpose of the trials

Track and manage information on the environmental impact of materials used in bicycle frame production, evaluate the feasibility of the data collection process and evaluate the value of the visualized tracked data to enhance the environmental value of recycled resources in the production of bicycle frames

2. Roles and responsibilities

Teijin:

Support of environmental assessment across the different processes and engagement of stakeholders toward the creation of an ecosystem

Fujitsu:

Implementation of blockchain platform based on the Fujitsu Track and Trust digital ledger technology and development of tool for visualization and provision of tracked data

V Frames and Advanced Bikes:

Upload of environmental impact information for different operational processes within the company to the platform; review of data collection and visualization process

3. Period

January 2023 - March 2023 (planned)

4. Future vision and goals

Creation of “digital twins” to manage resources: information about resources (including their location, condition, environmental impact, etc.) used/generated in the business operations from the recycling to sales process of bicycle frames will be uploaded and provided on the platform to create digital replications (digital twins) of physical resources and manage information on their condition; using blockchain technology, the platform will also offer past data on the condition of resources;

Disclosure and utilization of data: data from the platform can be used to share information on resources (origin of resources etc.) with bicycle users or utilized by various stakeholders in their carbon management; data on the platform can further be used as proof for the successful realization of a resource cycle and utilized for future ESG investment evaluations or as credits