13 May 2020
Blockchain Consulting and Development

Case Study: Blockchain-based Energy Usage Tracking and Carbon Credit Calculation

Challenge/Opportunity

Expanding environmental legislation such as NYC’s Greater Greener Buildings Act requires buildings to be carbon neutral as soon as 2025. By 2029, most NYC building owners will pay fines of $268 per ton of carbon emission in excess of their cap. Similar fines, caps and costs are now also being implemented in other cities, regions and nations. While retrofit activity decreases both costs and carbon emissions in the long-run, the upfront cost and effort of these activities can be unclear or intimidating.

Optimum’s Involvement

Launched in February 2020, GreenWatt engaged BlockApps and Optimum to develop a blockchain-backed energy tracking system. The ultimate goal of the solution is to build an ecosystem for real-estate managers, energy manufacturers and regulators to: track the energy usage, calculate the cost and ecological savings, convert ecological savings into a tokenized asset (i.e. carbon credit), and use tokenized asset as an incentive and investment vehicle for creation of new or improved energy management products and services .

Results

– Residual energy cost reductions of 20+% with industry-leading 92-96% efficiency -Standardized, simplified compliance reporting – Eligibility for incentive & regional FIT programs Preventative building maintenance and energy tracking alerts using smart contracts – Carbon credit (token) trading and other contractors with CO2 reduction technology

Expanding environmental legislation such as NYC’s Greater Greener Buildings Act requires buildings to be carbon neutral as soon as 2025.

Most building GHG (greenhouse gas) emissions are created from heat and cooling activities that use antiquated systems, making it impossible to:

  • Measure & report (annual) the carbon impact of a building
  • Perform proper cost-benefit analysis of building upgrades
  • Automate services & monetize carbon credits

By 2029, most NYC building owners will pay fines of $268 per ton of carbon emission in excess of their cap. Similar fines, caps and costs are now also being implemented in other cities, regions and nations.

While retrofit activity decreases both costs and carbon emissions in the long-run, the upfront cost and effort of these activities can be unclear or intimidating.

Current Project Underway

Launched in February 2020, GreenWatt, BlockApps and Optimum are underway with development of the project’s first phase. The ultimate goal of the solution is to build an ecosystem for real-estate managers, energy manufacturers and regulators to:

  • Precisely track the energy usage of their building systems
  • Calculate the cost savings of building improvements such as those provided by GreenWatt’s innovative co-generator units, with 40+ being installed across the Bronx, NY 
  • Calculate the ecological savings of building improvements and behavioral changes
  • Convert ecological savings into a tokenized asset (i.e. carbon credit) which can be both exchanged between building mangers AND prove regulatory compliance
  • Use tokenized asset as an incentive and investment vehicle for creation of new or improved energy management products and services

Phase One

Despite recent economic shocks, phase one of the project is currently under development with deployment targeted for the end of 2020.

  • Create the base network where data from the internet-connected (IoT) co-gen units are securely uploaded to a blockchain ledger
  • Automatically estimate the CO2 reduction generated by each co-gen unit using smart contracts

Phase Two & Beyond

  • Onboard additional CO2 technologies (e.g. efficient LED lightbulbs) to join the network
  • Create the marketplace component and custom functionality specific to CO2 technologies

Solution Benefits

  • Residual energy cost reductions of 20+% with industry-leading 92-96% efficiency
  • Standardized, simplified compliance reporting
  • Eligibility for incentive & regional FIT programs
  • Preventative building maintenance and energy tracking alerts using smart contracts
  • Carbon credit (token) trading and other contractors with CO2 reduction technology

About Optimum

Optimum designs and develops enterprise-level and robust blockchain solutions for various industries. From Proof-of-Concept (POC) to Integration with web services and full Production Deployment, we help our clients build the future of decentralized technology and drive digital transformation.

Optimum utilizes the field-tested, enterprise-grade security, interoperability and scalability of BlockApps’ STRATO platform to develop and customize solutions that address the unique needs and challenges of their clients.

Contact Us to speak with our blockchain experts and schedule a free discovery session.

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