Major Japanese trading conglomerate Marubeni Corporation has announced a pilot project with LO3 Energy – a New York-based blockchain company specializing in applications of disruptive technologies in the energy sector. The project’s aim is to test energy transactions with the intention to create a full-scale commercially operational network in the future.
According to their joint press release (Feb 20), LO3 Energy will use blockchain to connect a number of Marubeni’s power production facilities, including renewables, with offices and factories around Japan in a virtual marketplace for the pilot to increase the efficiency and automation of Marubeni’s renewable energy offerings.
“The Japanese energy sector is in the midst of a drastic transition, and there are increasing numbers of private power producers and suppliers interested in developing new customer offerings particularly in the renewable energy space,” LO3 Energy CEO Lawrence Orsini expressed.
“Initially this project is internally focused, but it is very much driven by the desire from Marubeni to explore the opportunities that blockchain management systems can offer in the transaction of energy throughout Japan.”
COO of Marubeni’s power business division Yoshiaki Yokota said, “This project will allow us to privately evaluate how this kind of network could work here in Japan and develop case examples that we can use to decide how and when this kind of project could be implemented widely.”
Marubeni is the fifth largest sōgō shōsha (general trading company) in Japan founded in 1918, and is related to to the group of companies connected with Japanese financial giant Mizuho.