Shell’s 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.

As an early adopter of this technology we aspire to use blockchain technology:

  • to establish trust and security amongst peers;
  • to assert the state or ownership change of digital assets by recording all transactions on the blockchain.

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. 

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.

Supply Chain

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Creating transparent supply chains with Digital Passports for Equipment

Shell has initiated 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.

New Energies

Solar panel in the city

Accelerating the energy transition with the Energy Web Chain

Shell is a founding member of the Energy Web Foundation (EWF), a global non-profit organisation that develops public, open-source, decentralised technologies purpose-built to accelerate the energy transition. In June 2019, Energy Web Foundation launched the world’s first public, open-source, enterprise-grade blockchain platform tailored to the energy sector: Energy Web Chain.

Trading

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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 a blockchain platform.

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

Developers collaborating

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:

  1. helping businesses to realise the benefits of the technology;
  2. ensuring that the right technology choices are made; and 
  3. 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’s businesses.

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