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Abstract In this paper we present our Blockchain-based solution to digitalize green LNG (liquefied natural gas); how with our digital asset, we create the differentiated-product carbon-neutrality LNG, leveraging innovation carbon-neutral business models in the natural gas eco-system.
We design digital twins to represent a certain volume of non-fungible gas. We track the digital twin of a molecule, tagged with metadata. The purpose of our technical development is to create a "digital asset" (DA); a virtual representation of a volume of LNG associated with a specific LNG cargo, reflecting specific green attributes. The DA can be split into phases, corresponding to LNG supply chain steps, to represent a specific volume of GHG emitted. Our model incorporates the possibility for LNG stakeholders to offset and compensate GHG emitted they are directly/indirectly responsible for and/or accountable for. Additionally, LNG Stakeholders can interact on a specific volume (parceled), differentiating the same molecules of gas (fungible) with specific green attributes (non-fungible).
We developed innovative digital assets’ features:
–Fractionable (dividable digital asset, for a specific volume of LNG);
–Transferable (change of ownership, for traceability along all value chain);
–Transactional & Valuable (a Premium offers with evidence of low emission); and, Stackable (rewards mechanisms).
This permits to provide a life-time value oriented service in a dynamic multi-actors model, to incentivize sustainable LNG with a premium, and value non-tangible assets.
Lastly, we programmed a redistribution mechanism, governed by smart contracts, to transfer collected fees (value pool) to local communities, triggering positive impacts; contributing to UN SDGs achievement.
Our Blockchain solution aims to establish a single origin of truth to provide LNG buyers and sellers with a decentralized interoperable view of carbon-neutral LNG cargoes; offering new capabilities to tackle issues LNG players are dealing with: clear delineation, silos approach (vs. collaborative), authoritative single source of information, data transparency, identified legitimate users, added-value generation; premium (attached / detached) in case of re-export, co-purchasing, borrowing & lending; and attribution of benefits of auditable emission intensities, including to big industrial gas consumers.
LNG players can help entities meet their net-zero commitments by sourcing green LNG; supporting companies for their green/carbon neutral initiatives throughout the whole supply chain.
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