Sumitomo Invests in Blockchain-Powered Peer-to-Peer Energy Platforms
Sumitomo Corporation and Sumitomo Corporation of Americas (together, Sumitomo Corporation Group) have invested in LO3 Energy, Inc., a U.S.-based developer and operator of blockchain-powered peer-to-peer (P2P) energy platforms. This funding will support LO3 Energy's commercialization of blockchain-based community microgrids.
With the rapid growth of renewable energy and battery storage technologies within the marketplace, Sumitomo Corporation Group anticipates decentralized energy systems becoming an essential function to support efficient use of clean energy, making LO3 Energy's technology an integral part of this ecosystem.
LO3 Energy provides peer-to-peer electricity trading platforms using blockchain technology to both retail power consumers and "prosumers" – those who both produce and consume energy. This technology allows consumers to buy and sell electricity directly from one another in a transparent, traceable way.
"The investment from Sumitomo represents a landmark moment for LO3 Energy as we begin to scale our blockchain microgrid networks around the world," said LO3 Energy CEO Lawrence Orsini. "Energy is going through a revolution with renewable distributed energy resources fast replacing fossil fuels – but to integrate them efficiently we need to re-invent our energy networks. These investments will help us accelerate the roll-out of our microgrids, which help put all stakeholders benefit through local energy transactions and demand response energy management on a building-by-building level."
Since the launch of LO3 Energy's Brooklyn Microgrid, the world's first P2P electricity trading project, the company has expanded the business in the Americas, Europe, Australia and other developed regions, planning and operating a number of pilot projects.
Mr. Norihiko Nonaka, Executive Officer of Sumitomo Corporation, commented, "Under drastic change and innovation in the power sector, especially rapid penetration of decentralized renewable energy, we have the intention to expand our business into the new field created by LO3 Energy. We will work together and support LO3 Energy's further growth which can realize a clean, environmentally sound community."
In order to boost the further growth of LO3 Energy, Sumitomo Corporation Group will draw on the expertise its power business has cultivated from its numerous projects around the world, as well as tap into its robust global networks.