HolyGrail 2.0: Where next for digital watermarking?

HOLYGRAIL 2.0:WHERE NEXT FOR DIGITAL WATERMARKING?

For the second iteration of the HolyGrail project – HolyGrail 2.0 – AIM, the European Brands Association, and the Alliance to End Plastic Waste, have announced the beginning of semi-industrial trials. We spoke with Michelle Gibbons, Director General of AIM, about what this next phase will encompass. We also spoke with Jacob Duer, President and CEO of the Alliance to End Plastic Waste, about their own involvement in the project and how it fits into the wider goal of waste reduction.

MICHELLE GIBBONS, AIM

PE: What are the aims and objectives of HolyGrail 2.0 and how does it represent a step-change from the first iteration of the project?

MG: The Digital Watermarks Initiative HolyGrail 2.0 is a pilot project with the objective to prove the technical viability of digital watermarks for accurate sorting of packaging waste as well as the economic viability of the business case at large scale.

In Phase 1, we focus on the development of a functional add-on module for the detection sorting unit that can efficiently detect and separate the digitally watermarked packaging from packaging waste. The first prototype, built by Pellenc ST and Digimarc, which combines the digital watermarks technology and NIR/VIS infrared for sorting of packaging waste, was validated in September 2021 with a >95% ejection rate. Over the next four months, trials and demonstrations with around 125,000 pieces of packaging representing up to 260 different stock-keeping units (SKUs) will be held. The second prototype by Tomra/Digimarc is currently being developed.

During the semi-industrial test phase, both units will be tested at two different locations that are capable of running semi-industrial trials. The first controlled tests using industrial sized equipment and the Pellenc ST/Digimarc module are scheduled for October 2021 at the ARC (Amager Resource Centre) sorting centre in Copenhagen. The Tomra/Digimarc module will be tested in Germany at the end of 2021 – beginning of 2022. A software model and identification parameters will be developed and tested for a category specific sorting based on digital watermark detection.

Pending successful completion of the semi-industrial tests, brand owners and retailers will then bring their enhanced products commercially to the market in three EU countries: Denmark, France and Germany. During this phase, which is planned to kick off in Q1 2022, the aim is that consumers will buy on-shelf products with digitally watermarked packaging, which after consumption will enter the waste stream. The functional prototypes developed by Pellenc ST and Tomra will be deployed in a large-scale pilot in commercial sorting and recycling facilities under normal operating conditions with minimal adjustments and optimization of components.

This last phase is scheduled to run until Q3 2022 after which the HolyGrail 2.0 Initiative will release a final public report outlining the techno-economic analysis of the digital watermarks technology for sorting of packaging waste.

We have also just announced our two new partnerships for the initiative. The Alliance to End Plastic Waste has joined us as key partner to drive the project. With the City of Copenhagen we are delighted to have another precious partner for the semi-industrial test phase on board.

PE: What would you say are the biggest infrastructural challenges in Europe when it comes to building a circular economy?

MG: To truly empower consumers to play their part in the Circular Economy, reliable, relevant, clear, understandable and EU harmonized information about the sustainability features of a product, such as environmental aspects, proper waste disposal, anti-littering and recycling, is crucial. Any such information needs to be ‘actionable’ by consumers. Unfortunately, with today’s increasing (national) proliferation of more than 200 environmental labels in the EU, a considerable number of consumers feel more confused than empowered to make a green product choice. Therefore, as brands we want to support citizens in their efforts, not only by continuously developing our products and making them more sustainable, but also by providing consumers with clear and relevant information about the sustainability features of products, whilst not overloading them with information.

PE: For those unfamiliar with the technology, can you explain how digital watermarking can help the EU to achieve its circular economy goals?

MG: One of the most pressing challenges in achieving a circular economy for packaging is finding a way to accurately sort post-consumer waste. Up to now, typical industrial sorting facilities produce about 16-20 single sorting fractions. Each fraction requires more or less a specific recycling route. More differentia-

tion in the sorting process of for example identical packaging materials used for different purposes (e.g. food- vs. non-food application) is not possible today.

Digital watermarks have the potential to revolutionize this process. Digital watermarks are imperceptible codes, the size of a postage stamp, covering the surface of consumer goods packaging. They are able to carry a wide range of attributes (e.g. manufacturer, SKUs, type of plastics used and composition for multi-layer objects, food vs. non-food usage). The aim is that once a package has entered a waste sorting facility, the digital watermark can be detected and decoded by a high-resolution camera on the sorting line, which is then able to sort the packaging in corresponding streams, thus enabling sorting processes that are not yet possible today with near infrared (NIR) technologies.

PE: Are there any perceived ‘drawbacks’ to digital watermarking from the brand owner point of view that would need to be addressed in order to ensure their more widespread adoption?

MG: The main success factor for a full-scale implementation of digital watermarks for intelligent sorting is acceptance by brand owners and retailers of the digital watermarks technology. That is why specific work packages within HolyGrail 2.0 address the technological and aesthetic concerns of packaging producers for digital watermarks in print. The aesthetic aspects of the packaging, such as shelf appeal, are crucial for brands and retailers. In this context, the initiative will release a public summary report on best practices for digital watermarks.

PE: Are there any other upcoming project milestones that you would be particularly keen to share with us at this time?

MG: During the semi-industrial test phase at the ARC sorting facility in Copenhagen, Open Houses comprising a virtual tour and demonstration of the prototype sorting detection unit for HG2.0 members and external stakeholders will take place on 19 October and 18 November 2021. Interested stakeholders can get more information directly on our website: www.digitalwatermarks.eu. n

JACOB DUER, ALLIANCE TO END PLASTIC WASTE (AEPW)

PE: Why is AEPW getting involved in HolyGrail 2.0? How does the project fit into your overall mission and what place does it occupy in your route map?

JD: The Alliance to End Plastic Waste has the clear mission to end plastic waste in the environment. We do so along four strategic pillars: infrastructure, innovation, education and engagement, and cleanup. HolyGrail 2.0 covers more than two of those, testing an innovative solution to sort plastic packaging waste as well as the infrastructure which is needed to make best use of the digital watermark technology.

The Alliance brings together a global network of business leaders, governments, intergovernmental organisations, entrepreneurs and civil society to speed up the development of solutions to end plastic waste. We are dedicated to developing solutions to different aspects of the complex plastic waste challenge. One of these areas is recycling. As we aim to steer towards a realization of a circular economy for plastic, recycling and innovative technologies to improve current and explore new processes play an important role. HolyGrail 2.0 will close important gaps to realizing circularity and, thereby, complement our project portfolio.

PE: Why is now – as the second phase of HolyGrail scales up its trials – the right time to partner with the project?

JD: In its first phase, HolyGrail 1.0, between 2016 and 2019, the project was facilitated by the Ellen MacArthur Foundation that worked together with different stakeholders from the packaging value chain to identify the digital watermark technology as a promising solution for intelligent sorting.

At the Alliance, we like to say we are a ‘do-tank’, rather than a ‘think tank’ — we focus our efforts to result in concrete action and aim to implement solutions on the ground. This second phase of HolyGrail, facilitated by AIM, turns the theoretical concept into life as we test the economic and technical viability of digital watermarks to learn how this solution could be implemented.

PE: Drawing on your holistic view of the global plastic waste problem, could you comment on the wider picture of what is required (beyond the actions of the HolyGrail stakeholders) to accelerate the implementation and impact of digital watermarking?

JD: Innovative solutions must be sustainable and scaled for impact. To achieve this, we need collaboration and a pioneering mindset.

Digital watermarks are one important solution to overcome gaps in current recycling processes. Many more solutions are needed to improve recycling processes and advance a circular economy. As the plastic waste problem needs to be tackled across different dimensions, we must work on these simultaneously, across different regions, and with different focuses, to enable technology solutions like this to scale. Bringing together key actors to find and implement solutions to end plastic waste by assessing local circumstances and using this knowledge to identify the best way forward is what we need to do — for the digital watermark technology, but also any other solution that helps to solve the global plastic waste challenge. n