Bitcoin
$41,721.75+0.73%
Ethereum
$2,205.86-0.63%
Binance Coin
$223.38+0.42%
XRP
$0.61119982+0.79%
Solana
$60.28-1.18%
Cardano
$0.39979175+0.95%
Dogecoin
$0.08859864+1.59%
Tron
$0.10321517-4.18%
Chainlink
$15.35-0.66%
Avalanche
$21.91+0.77%
Toncoin
$2.28-2.36%
Polygon
$0.79187511-0.73%
PlayIconNav
Crypto Prices CoinDesk Market Index CoinDesk Market Index
Markets

Oil Giant Shell Invests in Startup That Uses Blockchain Tech for Energy Tracking

A blockchain startup that says it's working to give energy consumers more choice has raised an undisclosed sum from Shell and Sumitomo Group.

By Daniel Palmer
AccessTimeIconJul 11, 2019 at 4:30 a.m. UTC
Updated Dec 11, 2022 at 1:56 p.m. UTC
Shell

10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A U.S.-based blockchain startup working to "democratize the energy industry" has raised an undisclosed sum from oil multinational Shell 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.

“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,” said Kirk Coburn, investment director at Shell Ventures.

With LO3's system, a mobile app enables users to choose from different local energy resources and further allows them to select a specific supplier.

While the electricity passes through the power grid as normal, a "private, permissioned blockchain" tracks the details of the energy source and the purchase agreement.

According to its white paperhttps://exergy.energy/wp-content/uploads/2017/12/Exergy-Whitepaper-v8.pdf, LO3's "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 resulting transactions will clear within a participative market-driven environment operating as close to the grid edge as possible, with an increasing level of automation by using self-executing contracts on a distributed ledger."

The company said its product could power a range of business use cases, including "peer-to-peer energy trading, energy hedging for businesses, virtual power plants, dynamic electric vehicle charging and demand response."

The startup's CEO Lawrence Orsini said:

“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.”

LO3 has previously garnered investments from Braemar Energy Ventures, Centrica, and tech giant Siemens.

Shell image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.