Using blockchain technology, South African startup Momint has initiated a project which aims to solve the country’s energy-technology challenges. Through Suncash, traders can purchase non-fungible tokens (NFTs) linked to photovoltaic cells, which can then be leased to public establishments, such as schools.
Momint Pilot Program at Local School
South African startup Momint recently announced the launch of Suncash, its blockchain-based solution to address energy challenges in the region. The pilot program has already been tested at Delmas High School in the Mpumalanga Province of South Africa.
Traders interested in participating in the venture can buy NFTs, which are linked to photovoltaic cells, at a minimum value of $9. The photovoltaic cell is then leased out to organizations that agree to purchase the electricity generated, under a conventional energy buy agreement.
Commenting on his firm’s solution to the South African energy technology crisis, Ahren Posthumus, CEO of Momint, stated:
We are a technology company looking to build in the next 15 years. But, we realized that we couldn’t build a business in a country without electricity.
Posthumus also noted that the firm doesn’t expect to make any profit from the venture, which he described as “financially unsustainable.” He said the team chose to go ahead with the project to help South Africa address its energy technology challenges.
Blockchain Solution Reduces Risks for Momint
Posthumus explained that blockchain technology was chosen for the project as it not only makes the venture more transparent, but also reduces the risk for Momint. He elaborated:
We take legal contracts that represent ownership of each individual cell, and we put those legal contracts into a file that is commonly referred to as ‘the token’ on the blockchain. It’s called a smart contract. That smart contract says: ‘whoever owns this token is entitled to the underlying asset’ and is entitled to the revenue that the underlying asset generates.
Despite the advantages of the blockchain-based solution, Posthumus noted that there are risks, such as the potential for public establishments to not comply with regulations.
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