Blockchain
At Shell, we are leveraging blockchain technology to reimagine current processes, create new value propositions and establish new markets.
Shell鈥檚 blockchain strategy is founded on three distinct pillars. We are leveraging blockchain technology to reimagine current processes, deliver cost savings, increase efficiencies and drive standardization across our processes and, indeed, across the entire energy industry. We will find new value propositions, particularly in emerging or rapidly evolving markets, by reimagining the operation of end-to-end value chains based on blockchain technology. Additionally, blockchain technology is making it possible to create completely new markets.
Shell continues to support and initiate the creation of decentralised ecosystems. As the emphasis shifts from private/consortium networks to public networks for enterprise use, we will continue our efforts to push the boundaries of blockchain in the energy industry.
The Energy Podcast: How Blockchain is Changing Energy
How can blockchain transform the way we produce and use energy? The Energy Podcast explores talks to three industry experts about their experiences of blockchain in action.
Blockchain in action
Blockchain activity in Shell
Shell is currently progressing multiple projects that are at different stages of maturity ranging from proof-of-value, to proof-of-concepts and pilots. We are actively creating new business opportunities with blockchain. To create new business opportunities and form new ecosystems based on blockchain, Shell is actively working with, or investing in, start-ups and emerging companies, participating in industry consortia, and establishing joint ventures.
Low carbon fuel
Shell is exploring the potential for using blockchain to encourage wider adoption of sustainable fuels in the transport sector.
We are also looking at blockchain as a way of verifying that hydrogen comes from sustainable sources. For example, Shell, Accenture and Amex GBT launch one of the world鈥檚 first blockchain powered digital book-and-claim solutions for scaling sustainable aviation fuel (SAF). It is the largest SAF book-and-claim pilot at launch, offering around 1 million gallons of SAF 鈥 enough to power almost 15,000 individual business traveller flights from London-to-New York. The pilot phase of the programme aims to demonstrate the credibility of the book-and-claim model, using blockchain technology to ensure secured allocation of SAF鈥檚 environmental attributes to companies and airlines after the fuel has been delivered into the fuel network. With Avelia, airlines and business customers could simultaneously reduce emissions in their respective scopes, while ensuring transparency and accountability by avoiding issues such as double-counting.
Supply Chain
Creating transparent supply chains with Digital Passports for Equipment
Shell has completed a pilot project to create a decentralized digital passport system for the authentication of equipment, parts and products. Blockchain technology makes it possible to create a digital passport for a piece of equipment by providing a system that enables data to be disclosed between certain parties in a supply chain. In turn, this enables us to enhance tracking and management of safety-critical process equipment or products throughout their life cycles. In this pilot, Shell is working with other companies, including manufacturers, inspectors and contractor companies to redefine the way it collaborates in its supply chains. These technologies are expected to reduce costs, increase productivity and help ensure safer operations for every party within the ecosystem. Find out more about the digital passport project.
New Energies
Accelerating the energy transition with Energy Web
(EW), a global non-profit organisation that develops public, open-source, decentralised technologies purpose-built to accelerate the energy transition.
Together with Energy Web, Shell completed a proof of concept of a blockchain solutions to support customers鈥 changing needs and the movement towards . The functionalities developed aim to increase transparency on renewable electricity consumption by applying blockchain technology to match energy production and consumption on a half-hourly basis along the energy supply chain, in a trusted way and in complement to existing certification schemes (EAC). The proof of concept has showcased the technical feasibility of such granular matching of renewable energy and shaped a customer value proposition that can now be tested with customers through a pilot.
Watch the demonstration below to find out more.
Tracking renewable energy 24/7 with open-source blockchain solutions.
Trading
Moving towards secure, smart, authenticated contracts with blockchain
Shell Trading is an investor in VAKT Global Ltd, which includes energy leaders, trading houses and banks. The VAKT blockchain platform, which went live in November 2018, enables post-transaction management of physical energy commodities and is part of the move away from traditional and cumbersome paper contracts and operations documentation toward a system with secure, smart contracts and authenticated transfers of electronic documents. Shell has also invested in Komgo SA, a venture that seeks to digitalise the trade and commodities finance sector through the same blockchain technology infrastructure. This allows for interoperability between VAKT & Komgo and brings trading operations and trade finance closer together and into a fully digitalized ecosystem.
Managing energy trading contracts
Shell has invested in LO3 Energy, a start-up that works with utilities and retailer energy providers to allow households and businesses buy and sell locally produced energy. Users set preferences through a mobile app, choosing how to procure the local energy resources available within their communities. Power flows through the partners' distribution network, but LO3's Pando platform manages the definition of the energy sources and a dynamic marketplace for contracting and settlement. The Pando platform enables a wide range of business use cases, including peer-to-community ("P2C") energy trading, energy hedging for businesses, virtual power plants, dynamic electric vehicle charging and demand response.
Blockchain COE
Blockchain Centre of Excellence
The Shell Blockchain Centre of Excellence helps to orchestrate blockchain efforts and serves as the Shell-wide expertise centre. The main tasks of the CoE are to build and disseminate capabilities, to develop platforms and decentralized solutions, to start-up projects across all value areas and to form and maintain strategic partnerships with blockchain ecosystems.
The Blockchain Centre of Excellence was established in 2017 with the aim of guiding Shell through an increasingly decentralised world. The primary focus areas for the centre are:
- helping businesses to realise the benefits of the technology;
- ensuring that the right technology choices are made; and
- building capabilities, toolkits and skillsets.
The Blockchain Centre of Excellence team includes conceptual, legal and technical experts and blockchain developers. In addition, blockchain product teams operate within Shell鈥檚 businesses.
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