LO3 Energy, a US-based blockchain startup, is working to “democratize the energy industry,” the company has raised from the oil multinational Shell and the Japanese business giant Sumitomo Corporation Group. Disclosure of funds.
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In a statement released on Wednesday, LO3 Energy said it has developed a "tradable energy platform" to track energy from different sources in the supply network.
Shell Ventures investment director Kirk Coburn said.
“As we enter a low-carbon future, Shell's goal is to invest in innovative companies that help transform the energy industry. LO3 Energy is right for this area.”
With the LO3 system, a mobile app allows users to choose from different local sources of energy, allowing them to select a specific supplier.
When the power is normally output to the grid, a “private licensed blockchain” tracks the details of the energy source and purchase agreement.
According to its white paper, LO3's “Exergy” blockchain is designed to “optimize the coupling between local power generation and efficient evaluation, acquisition, storage and utilization of power generation parties”. The resulting transactions will be conducted in a participatory market-driven environment, operating as close as possible to the edge of the grid, and using increasingly automated contracts on distributed ledgers to achieve higher levels of automation.
The company said its products can power a range of business use cases, including "P2P energy trading, enterprise energy hedging, virtual power plants, dynamic charging of electric vehicles and demand response."
Lawrence Orsini, CEO of the startup, said:
“The energy industry is undergoing a revolution, and the market share of renewable distributed energy will increase. But in order to effectively integrate, we need to re-engineer our energy network.”
LO3 has previously received investments from Braemar Energy Ventures, Centrica and technology giant Siemens.