Blockchain Technology
Traditional energy consumption requires an intermediary. You buy your electricity from a local provider, who is buying their supply from a larger oil or gas company. Over four years ago, Shell Oil made its first blockchain transaction. Using this technology gives Shell visibility into energy product pricing in real time. This allows for quick and efficient trades using smart contracts on the blockchain. Accordingly, using the distributed ledger to validate their assets, and the tamper-proof security afforded by the technology, make using blockchain in the energy sector ideal.
Shell Oil & Blockchain
Dan Jeavons, VP of Computational Science and Digital Innovation at Shell, said Shell Oil has
“created one of the first public blockchain solutions that create a credible and transparent way to help decarbonize the aviation sector.”
He indicated Shell has additional digital transformation projects currently undergoing evaluation or at the pilot status.
These “involve digital passports to track the lifecycle of industrial parts, equipment, and machinery at energy plants operated by the company and its partners.”
Basically, the use of these Web3 technologies gives them greater flexibility to make a move from fossil fuels to green and sustainable energy.
Shell Oil is using a system whereby certificates issued at the energy source are traceable as consumed. This allows companies to be 100% accurate in their claims of green energy usage. Because the process is driven by data, Shell is combining Web3 with other technologies like AI and the use of digital twins to drive innovation and sustainability efforts.
