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- The VeChain Foundation has entered into a partnership with the Chinese natural gas giant Shanghai Gas to build an “Energy-as-a-Service” ecosystem.
- In a first step of the project, information on LNG will be collected and stored on the VeChainThor blockchain.
VeChain is gaining further acceptance in China. Since Chinese President Xi Jinping gave a speech in October, in which he said that China must “seize the opportunities” that the blockchain offers, VeChain has been able to conclude several prestigious partnerships in China. For example, the VeChain Foundation has entered into a partnership with the Anhui Tea Association and has been promoted by the state media in China.
Yesterday it was announced that China’s Shanghai Gas (Group) Co, Ltd, a subsidiary of Shenergy Group Company Limited with a share capital of RMB 4.2 billion (approximately USD 592 million) will work with VeChain to build an “Energy-as-a-Service” ecosystem. With this, VeChain gets the next major company on board to revolutionize the energy sector in China through the VeChainThor blockchain.
Natural gas giant from China relies on VeChain
Shanghai Gas is a giant in the Chinese market for natural gas and liquefied natural gas. It accounts for 90 percent of Shanghai’s gas market and is the largest supplier in China in terms of customer size and storage as well as transport capacity. As early as 2018, Shanghai Gas, together with ENN Energy Holdings and VeChain, has already implemented a pilot project for the liquefied natural gas storage and distribution center in Zhoushan.
As stated in VeChain’s blog post, Shanghai Gas was impressed with the results of the pilot project, and the partnership now aims to optimize business processes for the entire company, reduce operating costs and improve supply chain efficiency. In addition, VeChain, ENN and Shanghai Gas strive to initiate the missing information exchange between the actors of the entire industry:
Under such circumstances, a more transparent solution to solve the problems of transaction processes, security issues, imbalance between supply and demand, pricing mechanisms has become a must need in the industry, in which blockchain technology has emerged as a viable solution.
In the first phase of the project, the LNG delivery information, the storage information showing the LNG quality, will be collected and stored on the VeChainThor blockchain. This is intended to significantly reduce the information barriers in the supply chain and create a more transparent product process.
The project will involve all “stakeholders, both upstream and downstream throughout the supply chain, to contribute to the future creation of a blockchain-based energy ecosystem”. The technical implementation will be done via the VeChain ToolChainTM, whereby Shanghai Gas will be enabled in the first phase to maintain its business operations remotely due to the corona virus using the cloud and blockchain based solution.
In the long term, the three parties have formulated a strategic plan based on Shanghai Gas’s business processes to create a comprehensive blockchain-enabled “Energy-as-a-Service” ecosystem that includes logistics management, energy trading and innovative financial products, and brings together key energy industry stakeholders.
In addition, VeChain is optimistic that the use of the Energy-as-a-Service ecosystem can be extended to the participating energy companies of the Belt and Road Initiative, a global development strategy in nearly 70 countries in Asia, Europe and Africa. In this regard the VeChain Foundation states:
With the continued development and reform of the LNG market in China, a huge and vibrant natural gas market potentially brought by the countries along “The Belt and Road” is being expected. […]
As “The Belt and Road” initiative progresses, companies that lead the pack in terms of possessing advanced digital infrastructure and technology will play a central role. As the co-founder of The Belt and Road Initiative Blockchain Alliance (BRIBA), VeChain is confident in enabling businesses and benefiting all stakeholders along the “The Belt and Road” with reliable and proven blockchain technology and infrastructure.
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