The fifth-largest oil and gas company in the world Shell recently announced that it has invested in an energy startup that is developed in the blockchain.
According to the July 10, Forbes reports, the amounts that oil and gas giant invested in LO3 — a New York-based company having Exergy platform that uses blockchain technology to track energy — remains undisclosed.
The current investment is the fourth blockchain-related public investment that Shell took as it already has Komgo, Applied Blockchain, and Vakt in its blockchain companies’ portfolio.
Shell can choose to convert the investment in XRG, LO3’s native tokens. The tokens will not only be needed to access the distributed energy grid but will also incentivize the platform.
The company’s earlier plan to use XRG to raise funds through an initial coin offering (ICO) was put on hold.
LO3’s Exergy, which in future will integrate EOS blockchain is presently based on the Ethereum blockchain.
Shell, together with Equinor and BP, has been a member of a blockchain-based energy commodity trading platform Vakt since 2018.
In yet another venture, Power Ledger — an Australia-based startup — stated that it would release a peer-to-peer energy distribution network in Austria’s second-largest city, Graz. LO3 wants to achieve zero-carbon energy by optimizing its energy management system.