150-yr Old Shanghai Gas to Employ Blockchain to Establish “a trust-free ‘Energy-as-a-Service’
Shanghai Gas – 150-year old Chinese energy enterprise – is widening its blockchain initiatives after victorious trial collaboration with supply chain administration blockchain company, VeChain (VET).
Utility services enterprise Shenergy Group owns Shanghai Gas, which was established in 1865. The Group has control over 90% of Shanghai gas market.
The company has a yearly supply of more than 8 billion cubic meters.
Shanghai Gas is piloting utilized distributed ledger technology (DLT) provided by VeChain to elaborately trace its logistics chain and discover opportunities for improving efficiency and minimize operational expenses.
The widened collaboration will result in Shanghai Gas establish “a trust-free ‘Energy-as-a-Service’ ecosystem” in collaboration with VeChain and electric energy provider ENN Energy Holdings.
ENN, which has a market cap of $85 billion, produces power for 17 provinces, over 16 million homes, and roughly 100,000 industrial clients.
The three enterprises, which have joined hands in the Blockchain-Enabled LNG (Liquified Natural Gas) Solution, have been trialing since November 2018.
The outcome of trial indicates “significantly eliminate[d] information barriers in the supply chain, contribute[d] to a transparent product process, and provide[d] a reliable database for LNG risk management.”
DLT continues to see an increase in adoption by the energy sector, with a recent research report forecasting blockchain technology applications within the power industry to record 82% y-o-y increase in investment growth.
If the prediction is precise, blockchain would account for almost 2% of the total $1.85 trillion energy sector in another five years.