Renewable Fuels Traceability
The Dutch Blockchain Coalition aims to accelerate the energy transition in collaboration with knowledge institutions, businesses, and the government. Blockchain technology is a crucial key to transparently make our energy system more sustainable. Blockchain can contribute to sustainable and scalable solutions in the energy sector, addressing one of the significant challenges we face together.
Our society and economy depend on what the Earth provides us. To have a livable Earth by 2050, substantial efforts are required concerning the climate, reducing national greenhouse gas emissions by 49% in 2030 and 95% in 2050 compared to 1990. There is also a need for more inventive approaches to the available resources.
Therefore, we have initiated an energy track, bringing together entities such as Shell, Port of Rotterdam, the Dutch Emission Authority, ABN Amro, Ministry of Economic Affairs and Climate, and others to collaborate on use cases like documenting the biofuel chain and data exchange to optimize the electricity grid.
Use Case: Traceability in the Biofuel Chain – Blockchain as a 'Single Source of Truth'
The energy transition poses new challenges. As the industry transitions from centralized to decentralized and shifts from fossil fuels to renewable fuels, the question arises of how parties can demonstrate and verify that green energy is genuinely green. In collaboration with amongst others NEA, Shell, Platform Renewable Fuels, Kryha, and the Energy Web Foundation, the Dutch Blockchain Coalition has developed a Proof of Concept to trace renewable fuels throughout the entire chain.
This addresses three problems within this chain. Players in the industry and regulatory authorities no longer need to manually establish and follow sustainability criteria. The origin of renewable fuels is immutably recorded on the blockchain, and difficulties in proving additionality are resolved.
How Does It Work?
Renewable fuels can be traced from origin to end-user through a mobile and desktop application. This application uses a decentralized infrastructure (blockchain) to efficiently collect, aggregate, and visualize sustainability information throughout the chain—all in a reliable and verifiable manner. This increases trust in the industry and fosters the growth of renewable fuel usage.
The findings of the Renewable Fuels Initiative are summarized in an interim report, providing an overview of insights gained and offering guidance for further developments. It emphasizes that collaboration, transparency, and privacy-by-design are crucial, providing recommendations for a long-term vision and the continued development of digital product passports.