Where there’s muck, there’s brass! But do investors need new ways to turn that muck into gleaming brass? Well, we have the answer – Bitcoin mining! Yes, you heard it right. Bitcoin, the best flexible load in the digital town, can now tackle a seriously stinky issue – landfill gas.
Daniel Batten, a Climate Tech Investor, has been working on a genius solution to revolutionise how to use Bitcoin mining to help governments achieve their ESG goals. Landfill gas contains methane, the naughty greenhouse gas that is 84 times more potent than carbon dioxide (Co2). Landfill emissions have been lurking under the radar, growing twice as fast as agriculture. But guess what? Daniel and his team at CH4 Capital have cracked the code, and now they are using this potent gas to mine some digital gold!
Why landfill gas for Bitcoin mining?
LFG presents a much bigger issue than we initially thought. But fear not, for Bitcoin mining is here to save the day! By channelling methane emissions into Bitcoin mining, we’re not just tackling environmental and health challenges but uncovering new and profitable opportunities.
Now, let’s address the elephant in the landfill – the challenges! Combining Bitcoin mining with stranded energy, landfill power-gen projects, carbon credits, and energy infrastructure requires a superhero team. Picture this – Bitcoin data centres chilling in landfill sites, getting cosy with well-maintained perforated wells, and leaving those power companies at the door. We’re here to make money and save the environment!
Many landfills lack convenient grid access, with only 30% of landfill sites being suitably located within a suitable distance of a grid. For the remaining 70% of landfill sites, Bitcoin mining swoops in like a superhero, saving the day and making landfill owners an average of £6.5 per megawatt hour! It’s a win-win.
Choosing the right site is like picking the juiciest fruit from the tree. No grid export, well-maintained perforated wells, quick decisions, and five-year Power Purchase Agreements – these are the required criteria. Think of it as finding the perfect spot to strike gold, but in this case, it’s Bitcoin gold! It’s not easy, but that’s what makes it so cool. Once it’s established, you will not regret the effort and investment.
Calculating revenue and costs
Effective financial planning is critical for the success of LFG-based Bitcoin mining. We’re not just making money; we’re generating carbon credits too! That’s right; we’re fighting emissions and mining Bitcoin at the same time.
Carbon credits play a significant role in generating additional revenue. Landfill gas carbon credits amount to approximately £3.20 per tonne of Co2. One tonne of methane is equivalent to 28 carbon credits. A 4 MW landfill is a carbon credit goldmine, making around £530,000 annually. Cha-ching!
Capital and team dynamics
Last but not least, assembling the dream team! We need the best of the best – commercial whizzes with access to capital and negotiation skills? Check. Bitcoin mining experts who optimise like there’s no tomorrow? Check. Energy infrastructure pros who keep the power flowing? Check, check, and check! It’s like building an all-star squad ready to take on the mucky world of Bitcoin mining.
Methane is also proving its potential in agriculture, as evidenced in Joe Hall’s documentary The Bitcoin Farmer with Scilling Mining. The documentary documents how Bitcoin mining is fostering circular economies on farms. The working examples highlight the exciting intersection between methane utilisation and its application in the world of Bitcoin.