Shell Oil Invests In A Startup That Uses Blockchain For Tracking Energy
To “democratize the energy industry” a U.S.-based blockchain startup has raised an undisclosed sum from Shell oil and Japanese business giant Sumitomo Corporation Group.
In an announcement published on Wednesday, LO3 Energy said it has developed a “transactive energy platform” to address the challenge of tracking energy from different sources across supply networks.
Kirk Coburn the investment director at Shell Ventures, said that“As we move into a less carbonized future, Shell aims to invest in innovative companies that will help enable the energy transition. LO3 Energy fits right in that space.”
LO3 has developed a mobile app for its system that enables users to choose from different local energy resources and further allows them to select a specific supplier.
In this system the electricity which is being tracked passes through the power grid as normal, a “private, permissioned blockchain” tracks the details of the energy source and the purchase agreement.
According, LO3’s white paper “Exergy” blockchain is aimed to “facilitate the optimal coupling of local electric generation to parties that can value, procure, store and utilize this generation most efficiently.
The transactions that result within the system will get cleared within a participative market-driven environment operating as close to the grid edge as possible, with an increasing level of automation with the help of self-executing contracts on a distributed ledger.”
The company claims that its system has the ability to power power a range of business use cases, which includes peer-to-peer energy trading, energy hedging for businesses, virtual power plants, dynamic electric vehicle charging and demand response according to the startup’s CEO Lawrence Orsini.
He also said that the energy industry is going through a revolution with renewable distributed energy resources increasingly picking up market share – but to integrate them efficiently we need to re-invent our energy networks.
LO3 has previously raised investments from reputed companies and investment firms like Braemar Energy Ventures, Centrica, and tech giant Siemens.