According to Forbes, on July 10, Shell, the fifth largest oil and gas company in the world, invested in a blockchain-based energy startup.
The European oil and gas giant has invested an unknown amount in New York based LO3 Energy, whose platform Exergy monitors energy using blockchain technology.
A recent LO3 investment marks Shell’s fourth government investment in blockchain-related firms, Forbes said, listing platforms such as Vakt, Komgo and Applied Blockchain as other portfolio companies of the blockchain.
Kirk Coburn, Investment Director of Shell Ventures said:
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.
According to the report, Shell has the ability to convert its investments into its own LO3 tokens called XRG, which will be used to stimulate the platform and will be needed to access the distributed power grid. Initially, the company planned to raise funds through the initial offer of coins (ICO) using XRG, but postponed these plans, the report says.
According to Forbes, Exergy in LO3 is currently based on the Ethereum blockchain, but also designed to integrate with the EOS blockchain.
Since the end of 2018, Shell has been a member of Vakt, a blockchain-based platform for energy trading, along with major oil firms, including BP and Equinor.
Recently, an Australian startup Power Ledger announced the launch of a peer-to-peer distribution network in Graz, Austria’s second largest city. As in the case of LO3, the company intends to optimize energy management and gradually switch to zero-carbon energy.
The Japanese Sumitomo Corporation Group also invested in LO3 Energy. The motivation behind the investment is the nuclear disaster that took place in 2011 in Fukushima and the attempt to move away from nuclear power plants. Norihiko Nonaka, Executive Officer of Sumitomo Corporatio said:
Under drastic change and innovation in the power sector, especially rapid penetration of decentralized renewable energy, we have the intention to expand our business into 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.