Shell invests in blockchain-based energy start-up LO3 Energy | BTC-ECHO
The upcoming energy transition requires new technological solutions. Finally, the vision of a decentralized network of producers of renewable energy leads to the problem of their coordination. The blockchain technology seems predestined for such tasks. Consequently, it is hardly surprising that the New York start-up LO3 Energy is working on a blockchain-based solution for energy distribution.
The company developed a "transaction-based energy platform" for this purpose. For LO3 received from the oil giant Shell and the Japanese Sumitomo Corporation now an apparently hefty cash injection. This is evident from a press release. The exact amount of the investment is unclear.
Kirik Coburn, Investment Director at Shell Venutres, justified this move with the need to contribute to the energy transition:
On the way to a less carbonized future, Shell wants to invest in innovative companies that facilitate energy transition. LO3 Energy fits exactly in this area.
Renowned companies such as Siemens, Braemer Energy Ventures and Centrica had previously invested in LO3.
LO3 CEO stresses need for a reorganization of the power grid
LO3 Energy is looking for ways to integrate distributed power generators, such as small power plants or wind turbines, into the grid. Lawrence Orsini, CEO of LO3, emphasized the enormous potential of renewable and decentralized energy. To realize this potential, however, a "reinvention" of our power grids is needed. The investments would help his company to contribute to this process:
These investments will help us accelerate the development of low-carbon microgrids, which will help all those involved to benefit through distributed, decentralized and decarbonised local energy transactions and to strive for energy management at the level of individual buildings.
Specifically, LO3 developed a blockchain-based energy app for the smartphone. Users give their preferences about how to use the available energy resources. You can therefore choose from which provider you would like to buy the electricity.
The current flows through the ordinary energy grid. The Blockchain platform, on the other hand, takes care of the choice of energy source and payment via smart contract. The authors of the press release mention a number of possible use cases, such as "peer-to-peer energy trading, energy security for companies, virtual power plants, dynamic charging of electric vehicles and demand response."
LO3 is involved in projects worldwide in the US, UK, Canada and Japan. In this country, however, is also being researched on the possibilities of block chain for the power grid. The German Energy Agency (dena) already considered the use of Blockchain to be sensible.
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