LO3 Energy has launched what it has labelled as a patented blockchain software and transaction system.
And Lawrence Orsini, founder and chief executive at LO3 Energy, said his firm was now “leading an energy revolution”.
The system, dubbed Exergy, acts as a distributed ledger on grid-connected hardware, such as generators.
Four key components make up Exergy, the first of which is the XRG Token which is fitted to grid-level hardware. By using these tokens instead of traditional transaction services, energy can be purchased and sold faster to enable ‘transactive energy’.
Proprietary technology developed by LO3 combines both an electric meter and a computing unit to collectively measure a building’s energy production and consumption. This TAG-e technology, as LO3 has called it, acts as a hybrid metering device to enable transactions to take place.
A mobile app houses the consumer-facing interface where units of electricity are purchased and sold.
Orsini said this made Exergy different from other energy and blockchain platforms because the architecture had been designed “from the ground up” in order to align more with electricity grids at distribution level.
“This makes it possible to secure and transfer the information critical for integration of distributed energy resources, like renewables and operating a truly decentralised grid,” he added.
Meanwhile LO3 has also established an Exergy Foundation to advance its technology and policy support for transactive energy. It intends to do this by launching research initiatives, advocacy work on behalf of regulatory frameworks and invest in early-stage projects.
Exergy is currently operational in specific projects located in the US and Australia with two projects in Germany expected to be up and running before the year’s end.
While no UK-based projects have been mentioned specifically, in October Centrica acquired LO3 under the guise of its innovations unit.
XRG tokens will initially be offered to accredited investors and developers under a Simple Agreement for Future Tokens (SAFT) structure. This will comprise an ERC20-compliant exchange allowing for transactions to take place.
The system’s launch is to go forward in three stages, commencing with a private sale of SAFT notes for institutional and private investors. This will be followed by the pre-sale of SAFT notes to accredited members of the public, before general sale taking place with a final event that incorporates full, functional proof-of-concept.