Oil and gas giant Shell invests in Ethereum blockchain project to track flow of energy

World’s fifth-largest oil and gas company, Shell, took a step forward in its exploration of the blockchain world, after it invested in a New-York based startup using a modified version of Ethereum blockchain. The New York-based startup, LO3, uses a derivative of Ethereum blockchain to enable users to buy and sell locally produced energy, reported Forbes.

While the tech is similar to Bitcoin’s, LO3’s platform tracks the flow of energy that is added to a share local energy network, in order to assure users who purchased the energy as to whether the power came from a solar panel, windmill or any other source. Even though the invested amount by the Oil and Gas giant is undisclosed, the company believes that it would help promote a low carbon environment. Kirk Coburn, Shell’s Ventures Investment Director, said,

“We see that it’s society’s ambition to live in a lower carbon environment.”

He added,

“LO3 is a platform that enables that.”

LO3 had planned to raise funds through an Initial Coin Offering [ICO], but that has been put on hold for now. However, its XRG tokens will be used after the platform’s launch in 2020, to incentivize use of the platform and to access the distributed energy grid. LO3 is also working on another token called Anergy to let consumers sell their energy-usage data to third-party companies.

As for Exergy, it is being built on the Ethereum blockchain and aims to allow smooth integration with EOS. Ben Conte, LO3 Director, said,

“We are building a custom blockchain combining the best of what existing blockchain communities have already accomplished.”

Including LO3, Shell has invested in four blockchain projects. Others include Vakt, an oil-trading platform, and Komgo- a commodities platform.