Green energy track continues to heat up, Zhili uses blockchain to track green energy

Chile is launching a blockchain-based platform to track renewable energy, giving miners in the country with top copper deposits a chance to showcase their green energy credentials to buyers.

The country’s electricity coordination agency, CEN, has launched an initiative called Renova to track every megawatt-hour of renewable energy from the time it is generated to the time it is consumed. By engraving this data into a blockchain, the aim is to ensure that end users get the clean electricity they paid for.

While global electrification is boosting demand for raw copper, mining companies are under pressure to reduce carbon emissions. Producers such as BHP Group and Anglo American Plc are sourcing renewable energy for their mines in Chile, where solar and wind power are booming.

“This platform allows us to quickly carry out certification to guarantee that local copper mines are using pure green energy,” CEN President Juan Carlos Olmedo said in an interview.

Olmedo said the platform would play a role in Chile’s efforts to become carbon neutral by 2050. Without a unified way of recording, there is a risk that power stations could sell duplicate contracts or that certificates could be double-counted, meaning less clean energy is used than stated on the books.

CEN already has access to data on power generation and consumption in real time. It is now encouraging companies to report on the renewable energy contracts they have purchased so that the data can be entered into the blockchain to ensure that the stipulated megawatt hours are delivered to their intended recipients.

For miners, the platform is an excellent tool for achieving sustainability goals. Industry giants have already begun to look at green hydrogen, which is produced by splitting water into oxygen and hydrogen using electrolyzers powered by wind and solar energy, as an alternative to diesel. Olmedo said that over time, Renova will be able to issue green certificates to prove that the hydrogen purchased is indeed green.

“The granular traceability and audit trail that blockchain can enable will be particularly useful for companies working towards net zero emissions targets,” said Amanda Ahl, an analyst at Bloomberg NEF focusing on emerging technologies in the energy sector. “It can be part of the solution, ensuring companies are meeting their sustainability goals by verifying emissions reduction claims.”