Sinan Energy South Africa has launched a blockchain platform for carbon tokenization

  • May 19, 2022 at 10:44 am
  • A South African blockchain startup has launched a carbon tokenization blockchain platform that aims to spark a renewable energy renaissance in the country. Sinan Energy is targeting an initial capacity of over 100 megawatts and the project will be funded through the sale of tokenized carbon credits. Sinan claims to have signed power purchase agreements with several key players and obtained the necessary permits to build and operate plants with a total capacity of at least 100 MW, Smart Energy reported. Construction is scheduled to start this month. The company, based in Brianston, South Africa, plans to build a power plant in the country’s Northern Cape in a so-called innovation zone. Sinan plans to have two revenue streams — one from energy sales and the other from carbon credits. “The existence of multiple revenue streams means Sinan can introduce new renewable energy technologies earlier than others and accelerate their commercialization and mass deployment,” he said. As for why it’s switching to blockchain, the company says the technology “enables it to tag, record, and verify carbon credits generated by its own facilities.” This allows it to gain international certification and thereby trade carbon credits on the global carbon market. Carbon credits have become a lucrative business as the fight against climate change takes shape. One study estimates the market will reach $6.7 billion by the end of this year, with Bloomberg analysts forecasting it will grow 3,000% to $190 billion by the end of 2030 as stricter regulations take effect worldwide. Blockchain technology continues to be an edge in the energy sector, with fair trade in energy giving individuals known as consumers (producers/consumers) a much better opportunity to sell some of the extra energy they produce. Blockchain helps track transactions, and in many cases smart contracts are implemented to automate payments between parties, which are usually done in digital currency. Only large-scale blockchain networks can be integrated into such a system, and Bitcoin SV is undoubtedly a good fit for this fledgling industry with its unlimited blocks, real-time transactions and low fees.