Evolving green energy finance with onchain RWA: Meet penomo!
penomo is a revenue-based onchain capital financing platform for green energy assets.
Turning renewable energy infrastructure (such as Solar, Storage Batteries, Wind farms and more) into liquid, tradable assets through Real World Asset (RWA) tokenization.
Why?
The rapid adoption of AI and our race towards General AI has just skyrocketed humanity’s energy demand (think enormous Data Centres for training algorithms 24/7), as if Bitcoin mining & space exploration weren’t on the list.
“We’ll run out of electricity if we adopt the fully AI world…it needs Trillions of dollars of investments” , said Larry Fink — CEO of Blackrock with $9 trillion worth Assets under Management, earlier this June.
Jenson Huang, Nvidia CEO, recently highlighted that the World receives an abundant amount of renewable energy (to sustain AI advancements) from renewable sources, all we need to do is simply tap into it at ‘the right locations’.
The numbers don’t lie. Take this example - a solar farm covering merely 0.2% of the Sahara Desert can deliver enough electricity to power the entire World!
Only if it were that trivial. To make this a reality, we need enormous Capital injection. According to the International Energy Agency (IEA) & recent UN report there is a $4 trillion financing gap per year.
The good news is — this Capital exists. So what’s the BIG BUT?
Liquidity!
Or rather lack of it. Green assets are illiquid — cannot be easily or quickly sold or converted into cash without a significant loss in value, and do not find private capital access easily.
Solving real infrastructure problems
Dominated by Banks and TradFi lenders today, capital injected in energy markets does not simply flow and it’s hard to exit, increasing the Risk and resistance to invest. This is followed by bureaucratic slow access to capital, and high fixed interest rates or equity takeover. A perfect recipe to inhibit renewable energy growth.
The hardest hit are Green energy projects in those ‘right locations’, that Jenson Huang referred to, that are primarily in emerging markets and often labeled ‘not Bankable’!
‘Clean energy needs unprecedented levels of Private Capital access” — World Bank
To realize the dream of Clean Energy Transition (Net Zero 2050), we need a financial evolution.
Enter penomo!
Simply put, penomo makes green assets liquid and tradable for global private capital markets and energy communities through its user-friendly App. Revenue based, powered by tokenization.
A new green Asset Class for blended finance
From Asset allocators & institutions to individuals, users can access digital tokens representing fractional financial ownership of revenue-generating physical energy infrastructure, that return stable asset yields or secure their own clean energy supply.
For Green Asset Developer & Operators, penomo provides a blended finance model that surpasses limits of conventional banking/lending with flexible & accelerated capital access with revenue-based repayments.
Leveraging Tokenization
Tokenization of Real World Assets (RWA) is the process of converting illiquid physical or digital assets into digital (security) tokens that are easy to access and can be easily sold. Boston Consulting Group (BCG) estimates the total size of tokenized illiquid assets to reach $16.1 trillion by 2030 alone. We are witnessing institutional adoption of tokenization with BlackRock’s tokenized fund (BUIDL) surpassing $500M market value in Q2 2024.
The tokens and the underlying asset data are securely and immutably stored on a blockchain, bringing financial efficiency in asset issuance, valuation, risk management, p2p settlements and portfolio composability as never before.
While this technology holds unprecedented potential as the next frontier in global infrastructure and clean energy finance, there are adoption barriers that cannot be solved by a single player. penomo addresses this by pulling-off a comprehensive network of components, from regulatory compliance to seamless payment rails to process automation, operating cohesively (more on in next articles).
The team behind penomo
Spanning senior executives from premier institutions like Deutsche Bank, JPMorgan & Chase, to entrepreneurs in commerce & experts in energy infrastructure such as Goldbeck Group, to seasoned builders in blockchain technology we are an unparalleled bunch on a mission to bring the needed infrastructure finance evolution for us and our future generations.
As the world is witnessing unprecedented uncertainties and growth, from AI to Space exploration, achieving clean energy in good time to sustain all human endeavors is key and at the center of it all.
We are here to blend the best of financial & digital technology and make it happen.
The future looks bright!
