Blockchain technology is being used in various industries as more applications for groundbreaking technology are developed. A group of energy companies has come together to build a blockchain platform for the energy industry.
Sinochem Energy Technology Co Ltd has entered into negotiations with Macquarie and Royal Dutch Shell in a bid to develop a blockchain-based system for the energy industry. Sinochem Energy Technology is a subsidiary of the state-owned Sinochem Group, an oil and chemicals firm.
Macquarie and Shell already had a memorandum of understanding in place before this agreement. The MOU was signed in July as the companies agreed to develop a blockchain-based platform for the trade of crude oil. This is one of the areas in which Sinochem is an expert, and there is great potential for the platform to grow and become one of the best blockchain platforms in existence.
Sinochem Technology Department
Sinochem has a technology department that has been looking at the possibilities of incorporating various technologies into the oil and energy sector. The technology department has been struggling for two years since its launch because there has been little revenue despite the substantial investment that Sinochem has placed in the department. The company’s digital platform has been named Gateway, and it is through this platform that the firms will explore blockchain technology.
If the negotiations between Sinochem, Shell, and Macquarie succeed, the technology unit will receive significant funding for the development of the blockchain platform. Shell and Macquarie, in their MOU, agreed to look at the possibility of investing in Sinochem. According to anonymous sources, Sinochem Group has placed an internal deadline for its technology department to attract investors by the end of October at the latest. This deadline has been set in order to stop the losses being suffered by the tech department at Sinochem.
The technology unit was formed in 2017, and it was supplied with a registered capital of 1 billion yuan. Since then, Sinochem has placed over 600 million yuan into the technology unit. Due to the losses incurred over the year, over 500 jobs have been cut from Sinochem technology out of the 1,000 jobs that were at the firm at its peak.
Gateway uses technology similar to that behind Bitcoin for its blockchain and cryptological needs. This technology will be vital in improving transparency in the energy sector and reduce the risks that come with fraudulent activity in the industry. A group of energy companies coming together to create a blockchain platform will place the industry in a position to achieve growth.