Interview With Vikram Seth of Shell

Interview by Tom Lyons

We don’t normally affiliate corporations like Shell with blockchain. How lengthy has Shell been on this area?

Shell has had a blockchain group since 2016. We’re one of many earlier vitality corporations concerned within the area. We had been a founding member of the Vitality Net Basis in addition to conveners of assorted blockchain initiatives within the vitality sector. Shell has been concerned in exploring how blockchain and Web3 will be utilized as an answer to varied issues, notably within the context of the vitality transition to a lower-carbon and sustainable vitality system. 

What was your authentic focus, and the way have you ever developed? 

Our focus initially began off very a lot round bettering present processes. How can we do what we’re doing higher, cheaper, and quicker by utilizing blockchain? After that, we began taking a look at methods to make use of blockchain to enter new markets. And the third piece is the place we are actually. 

Within the age of Web3, NFTs, the Metaverse, and DeFi, this third area is about taking a look at new enterprise fashions. Model new methods of doing issues, new sources of consumers, exploring and tapping into enterprise alternatives from avenues that weren’t on the desk earlier than.

Are you able to give examples of the brand new enterprise fashions you’re discussing?

Take the vitality transition. We’re seeing a shift from centralized to way more decentralized vitality manufacturing. When producing oil and fuel, economies of scale have sometimes been essential. There are massive oil and fuel fields that require heavy capital funding. Within the vitality transition, we’re transferring in the direction of photo voltaic panels on all people’s roof. We’re additionally taking a look at electrical automobiles which may change into vitality storage units, so used each for consumption in addition to storage and dispatching. 

This transition means a probably important scope for decentralization on the vitality manufacturing aspect. One other instance is massive nationwide grid constructions, the place energy transmission has been primarily in a single path from energy producers to energy shoppers. Now, societies are constructing two-way methods the place “prosumers” can produce energy as nicely and promote it to the grid. 

While this decentralization is happening within the vitality system, we’ve the same decentralization occurring on the net. So, Web3 and Blockchain applied sciences can supply distinctive benefits in managing decentralized methods. We see these two shifts marrying very intently. 

Then comes the sustainability piece. When an organization makes sustainability claims, they’re saying one thing to the market, regulators, and clients about, for instance, the origin or carbon depth of its vitality merchandise (chemical substances, fuels, or electrons). These claims have to be substantiated with clear verification. 

Blockchain can deliver a layer of certainty to clients that the merchandise they buy are from, say, renewable sources or that the carbon credit score scheme they signed up for represents the elimination of carbon from the environment and isn’t double-counted. As blockchain can monitor renewable vitality from supply to consumption, it may give clients extra perception into its low-carbon attributes. 

Are you engaged on any particular tasks when it comes to sustainability?

Sure. Avelia, a platform to speed up the adoption of sustainable aviation gas (SAF), is certainly one of our flagship tasks and is about simply the sort of use case. Avelia tracks when SAF is injected into the advanced, world jet gas community and when it’s consumed by an airline or company flier. It permits these patrons to say using SAF that they’ve paid for, despite the fact that it might not be bodily out there at a selected airport however is burned elsewhere within the sky. 

Avelia makes use of Vitality Net Chain, which is an EVM-compatible public blockchain. Utilizing public blockchain is a vital side as a result of the philosophy we’ve inside our group is to give attention to public verifiability to be able to actually allow transparency and traceability. 

Now we have different tasks and PoCs as nicely within the area. We strongly imagine that leveraging rising digital applied sciences similar to blockchain will assist speed up the vitality transition while making certain belief in our sustainability claims and people of our clients. 

What different tasks are you engaged on?

One other main undertaking that has just lately gone stay is Falcon, which we co-developed with Wipro and piloted in our operations. Falcon is a platform for industrial provide chain administration, which was constructed with Wipro and launched on the Polygon chain. 

Falcon primarily eliminates the necessity for a bodily paper path for heavy industrial tools, which makes traceability and auditability tough. As a substitute, Falcon makes use of digital product passports to make information extra accessible and reliable.

As well as, we’ve additionally labored on the traceability of sustainable chemical merchandise. We ran a few PoCs with two totally different gamers to point out if plastic is produced from a bio-based supply or a round supply (recycled), differentiating it from virgin plastic. Right here, we’re utilizing blockchain to supply traceability via each level within the provide chain, from materials supply to end-customer.

You lately introduced a collaboration with Gitcoin. What was the intention there?

This initiative is concentrated on regenerative finance or ReFi. ReFi is explicitly exploring how Web3 infrastructure and governance fashions can assist sustainable or regenerative economies. This area is admittedly fairly nascent, and we had been asking ourselves how we are able to work with and assist startups which might be constructing the enabling options. 

The collaboration with Gitcoin happened as a result of we love what Gitcoin is doing; it’s a novel approach of funding utilizing the knowledge of the gang to assist tasks in lots of areas, together with local weather motion. We felt their strategy was most applicable given the early stage of maturity of ReFi. 

Shell offered grant funding to Gitcoin for 4 of their local weather rounds, and tasks can opt-in in the event that they wish to obtain a share of those funds. It’s the group that’s deciding which tasks to fund and by how a lot. 

This, by the way in which, is the primary time that Shell has labored with a DAO.

Turning to Ethereum, what are crucial developments you see within the enterprise Ethereum ecosystem at this time?

Key Ethereum developments are the change to a proof-of-stake consensus mechanism, transferring away from proof-of-work, and the rising enterprise shift from personal to public blockchains. 

Initially, we did loads of work with personal chains. Naturally, we’re targeted on information safety and privateness, and subsequently, preliminary efforts consisted of de-risking the know-how and proving compliance. However our key pillars are traceability, belief, and transparency. And it’s very clear that that may solely be delivered at scale by public blockchains. With options similar to zero-knowledge proofs, we are able to see a better potential to make use of public blockchains whereas sustaining the safety and privateness of information the place wanted. 

One other benefit to utilizing a public blockchain is the power to assemble a bigger ecosystem of gamers. These ecosystems are much more prone to kind round a public, permissionless setup than in a personal chain with a walled backyard. 

And when speaking about public blockchains, one issue that basically speaks for Ethereum is the variety of EVM-compatible chains. That makes for a bigger ecosystem but additionally, by definition, gives some degree of interoperability. That can be one thing key for us to think about. As a result of we wish to be certain that as we apply Web3 to the decentralized vitality system of the longer term, our totally different options can speak to one another if we wish them to. 

Vikram Seth serves as Head of Blockchain & Web3 at Shell, the place he performs a pivotal function in integrating blockchain and Web3 applied sciences into the vitality sector. With over a decade of expertise on this trade, Vikram is deeply dedicated to leveraging these applied sciences for world sustainable growth. He has a specific give attention to utilizing DeFi, cryptocurrency, and NFTs in tasks geared toward sustainable and regenerative growth.