Yesterday LO3 Energy, a Brooklyn-based company that is building a blockchain platform to enable a decentralised business model in the energy sector, revealed the news that both Shell and Sumitomo Corporation have invested in the project.
The company uses a version of the Ethereum blockchain that allows users to buy and sell locally produced energy, ensuring that the energy comes from specific sources such as solar or wind energy and so on.
These new investments will enable this project to be implemented worldwide, as stated by LO3 Energy CEO Lawrence Orsini:
“The investment from Shell and Sumitomo represents a landmark moment for LO3 Energy as we begin to scale our blockchain-based energy networks around the world. Energy 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. These investments will help us accelerate the roll-out of less carbon-intensive microgrids, which help all stakeholders benefit through distributed, decentralized and decarbonized local energy transactions and demand response energy management on a building-by-building level.”
This will allow the use of fewer fossil fuels, a view also shared by Shell Ventures’ investment director, Kirk Coburn:
“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.”
An investment not only from Shell
As for Sumitomo Corporation, one of the world’s top Sōgō shōsha, they will also support the LO3 project especially with regard to renewable energy, as stated by the Executive Officer of Sumitomo Corporation, Norihiko Nonaka:
“Under drastic change and innovation in the power sector, especially rapid penetration of decentralized renewable energy, we have the intention to expand our business in the new field created by LO3 Energy. We will work together and support LO3 Energy’s further growth, which can realize a clean, environmentally sound community.”
LO3 and Kyocera
In February 2019 the Japanese company Kyocera Corporation and LO3 Energy had already unveiled a test project to create a virtual power plant operated through blockchain, based on green photovoltaic technology.
The idea, in that case, was to create a Virtual Power Plant, or a power generation plant that integrates different sources, even heterogeneous, so as to be able to provide energy continuously.