LO3 Energy, a NY based company, secures major backing from two global corporate giants Shell Ventures and Sumitomo Corporation Group to support the global development of its blockchain based community energy networks.
Pioneering ⛓️ Shell Ventures’ new investment @LO3energy is developing advanced #blockchain technology that can help the transition to a lower-carbon future. https://t.co/roe30EM4Y2
— Shell (@Shell) July 10, 2019
LO3 Energy has developed a transactive energy platform to overcome the challenge of integrating distributed energy resources (DERs) into supply networks. The network will allow people to both consume and produce electricity at their home and business.
A dedicated mobile app will help the users to set preferences of all the available local energy resources from where they can choose and purchase. The newly designed system will allow electricity to flow through the normal grid transmission network, but the private, permissioned blockchain will manage the energy source and the contract agreement to pay for it.
According to LO3 Energy CEO, Lawrence Orsini
“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.”
The business use cases of this partnership include peer-to-peer energy trading, energy hedging for businesses, virtual power plants, dynamic electric vehicle charging, and demand response.
Kirk Coburn, Investment Director 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.”
LO3 Energy’s transactive energy platform was pioneered with the Brooklyn Microgrid and the company now runs projects with partners around the world. LO3 already has investment from Braemar Energy Ventures, Centrica, and Siemens.