Spanish companies Endesa and Gas Natural Fenosa have carried out the first blockchain-based energy trade transaction.

With this trial, they have become the first companies on the Iberian Peninsula to buy and sell energy using blockchain technology. The transaction involved a deal for a total of 5.95 GWh of natural gas.

According to the official release, the transaction was made possible by Enerchain – a joint initiative which involves 39 major European energy companies. The deal marks the first real trade transaction on the platform and was carried out at the E-World trade fair in Essen, Germany.

Endesa’s parent company Enel is also involved in the Enerchain initiative. Last October, Enel, together with E. ON, traded electricity for the first time using the blockchain-based platform.

“Through this project, we are leveraging on cutting-edge solutions to build a trading platform that can lower energy supply costs, while creating value for customers, in line with the Enel Group’s Open Innovation philosophy,” Javier Alonso, Director of Trading at Endesa, said.

Developed by German software company Ponton, Enerchain was officially launched in May 2017. It is the first decentralised energy trading platform involving physical delivery. The platform can be used to trade gas and electricity for any area in Europe and any supply period, from the very short-term to annual baseload transactions.

"With this transaction, Gas Natural Fenosa shows its commitment to innovation," said David Guerra, Director of Trading at Gas Natural Fenosa, and Susana Calvo, the company’s deputy director of Emerging Businesses. "Blockchain technology, though it still has to overcome some relevant challenges, has the potential to transform many areas in which energy companies are active, with major benefits for our customers, both in terms of price and services."