Summary
On this research, we reveal that it isn’t solely possible however economically viable and environmentally helpful to make use of landfill fuel (LFG) for digital asset compute (e.g., Bitcoin mining). To help this idea, Marathon partnered with Nodal Energy to harness extra capability from their venture, which is solely powered by landfill methane fuel. This partnership, leveraging Nodal’s patented expertise, efficiently utilized methane from a landfill, transformed it into electrical energy, and used it to energy the on-site knowledge heart. This course of proved to be constantly dependable, with excessive uptime and emerged financially helpful for Marathon and Nodal. The price of electrical energy was considerably decrease than the {industry} common, and the landfill generated income from a beforehand untapped useful resource that might in any other case have been wasted. Moreover, powering compute with landfill fuel effectively diminished methane emissions. In situations the place the landfill would have resorted to flaring the methane, digital asset compute proved to be more practical in mitigating emissions.
This pilot venture was Marathon’s first profitable check run of “power harvesting,” which incorporates initiatives devoted to changing waste into power, methane fuel recapture, stabilizing power grids by using stranded or extra power, and reusing warmth generated by knowledge facilities for industrial and business functions.
Introduction
Methane is a potent greenhouse fuel with a world warming potential 80 instances larger than carbon dioxide over a 20-year interval. In line with the International Methane Evaluation, “attaining methane emissions reductions within the subsequent decade will preserve the planet considerably cooler than makes an attempt to chop carbon dioxide emissions alone.” In our Cashing in on Trash report, we cited that landfills are liable for 11% of worldwide methane emissions, with current research suggesting that these emissions is likely to be 1.4 to 2.6 instances larger than beforehand estimated.
Recognizing that landfills are main emitters of methane, we believed there was a chance to make landfills extra sustainable with our digital asset compute applied sciences. Giant landfills able to producing enough portions of methane have the choice to economically cut back their emissions by waste-to-energy conversion applied sciences. These websites can convert captured methane into two types of sustainable power: 1) electrical energy, which could be bought to the grid, and a pair of) renewable pure fuel (RNG), which could be distributed by pipelines. Sadly, conventional waste-to-energy conversion strategies are sometimes not possible or economical for smaller or extra distant landfills. In our report, we proposed a extra viable, win-win resolution that we believed was possible right now for smaller landfills: seize methane from landfills, convert it into electrical energy, and energy digital asset knowledge facilities to economically cut back methane emissions.
To check our idea, Marathon launched a pilot venture by becoming a member of Nodal’s off-grid digital asset compute facility to energy a Bitcoin knowledge heart with 100% renewable, off-grid power from a landfill.
Pilot Particulars
Location: Utah, USALaunch Date: September 27, 2023Pilot Standing: On-goingDuration: 240+ daysCapacity: 270 kWComputing Gear: 83 S19J ProsOperational Hash Price (computing energy): 8.3 PH/s
Determine 1: Marathon’s and Nodal’s Venture
The outcomes from this pilot supported our preliminary idea. Marathon and Nodal utilized methane from the landfill and transformed it into electrical energy to energy a digital asset knowledge heart. The landfill efficiently diminished its methane emissions whereas producing a income stream it in any other case couldn’t have earned. Marathon and Nodal realized an power value considerably under the {industry} common and maintained an above-average operational uptime. Moreover, this was Marathon’s first profitable trial of “power harvesting,” marking a major milestone in our growth of sustainable and inclusive power initiatives. These initiatives embrace changing waste into power, methane fuel recapture, stabilizing the power grid by using stranded or extra power, and reusing warmth generated by mining methods for industrial and business processes.
Definitions and Calculations of Key Metrics
Throughout our pilot venture, we tracked numerous metrics to guage the effectiveness and affect of our operations. The next are the important thing metrics used on this report, every outlined with its definition and calculation methodology.
Common Operational Hash Price
The common hash price or computing energy that was generated throughout a selected time interval from all operational digital asset computing units, measured in petahashes per second (PH/s).
Pool reported hash price per day / Whole days
Operational Uptime
The share of time that the computing units had been practical and actively working.
Operational uptime = Minutes with pool reported hash price / Whole minutes
Methane Utilized
The quantity of methane fuel (CH4) that was harnessed for era, measured in Customary Cubic Ft (SCF).
CH4 utilized (SCF) = Common petahash (PH/s) × Methane utilization price (SCF/PH/s/Day) × Days
Carbon Dioxide Equal Emissions (C02e)
CO2e quantifies the worldwide warming affect of assorted greenhouse gases, like methane, by evaluating their impact to that of an equal quantity of carbon dioxide. This comparability is predicated on every fuel’s International Warming Potential (GWP), an element that represents the comparative warming impact of a unit of the fuel relative to the identical unit of CO2 over a selected time-frame. We used a GWP timeline of 20 years (issue: 84) and 100 years (issue: 28).
C02e = CH4 kilos utilized * GWP issue
Observe: We assumed one SCF of CH4 equals 0.045 kilos at one ambiance and 80 levels Fahrenheit.
Common Gasoline Value per Kilowatt-hour (kWh)
The common value of electrical energy per kWh consists of operational and upkeep bills.
Common Gasoline Value per kWh =
(SCF × 0.001002 dekatherms per SCF × methane content material share × price per dekatherm / kwh) + (operations and upkeep value / kWh)
Outcomes
The outcomes offered on this part replicate the primary 240 days of the pilot venture, spanning from September 27, 2023, to Could 24, 2024. You will need to notice that these findings don’t embody your complete length of the venture however focus particularly on this era.
Methane Utilized
Over the course of 240 days, we utilized roughly 16.1 million SCF of methane. This determine was estimated from the every day utilization price, which was roughly 8,400 SCF of methane for every petahash operational.
Had we not harnessed this methane, the landfill would have flared it. Whereas flaring does cut back the worldwide warming potential of methane by changing it into carbon dioxide, it is just about 92% environment friendly. On common, 8% of flared methane nonetheless escapes into the ambiance. By redirecting the methane to energy a reciprocating engine to supply electrical energy for Nodal’s knowledge heart, we achieved a close to 100% mitigation effectivity. This method resulted in us mitigating an extra 672 SCF of methane every day per petahash, which might in any other case not have been mitigated by flaring. Within the span of 240 days, we prevented the discharge of roughly 1.3 million SCF of methane into the ambiance.
Determine 2: Methane Utilized by Marathon’s and Nodal’s LFG Pilot Venture (240 Day Length)
Carbon Dioxide Equal Influence
To contextualize the environmental affect of our pilot venture, we calculated its methane utilization in its carbon dioxide equal utilizing a GWP timeline of 20 years and 100 years.
Of the entire 16.1 million SCF of methane we utilized, our findings point out that we helped forestall the discharge of roughly 60.9 million kilos of C02e utilizing a 20-year GWP timeline and 20.3 million kilos of CO2e utilizing the 100-year GWP timeline.
In line with the Environmental Safety Company (EPA), a mean gas-powered passenger automobile emits about 9,200 kilos of C02 yearly. Thus, over the course of 240 days, our venture mitigated the equal of 6,627 gas-powered passenger vehicles utilizing the 20-year GWP timeline and a pair of,209 gas-powered passenger vehicles utilizing the 100-year GWP timeline.
If we solely take into account the extra 1.2 million SCF of methane mitigated along with flaring, we prevented the discharge of roughly 4.8 million kilos of C02e utilizing a 20-year GWP timeline and roughly 1.6 million kilos of CO2e utilizing the 100-year GWP timeline. Thus, over the course of 240 days, our venture mitigated the equal of the yearly emissions from 530 gas-powered passenger vehicles utilizing the 20-year GWP timeline and 177 gas-powered passenger vehicles utilizing the 100-year GWP timeline.
Determine 3: Carbon Dioxide Equal Methane Utilized by Marathon’s and Nodal’s LFG Pilot Venture (240 Day Length)
Operational Effectivity and Uptime
We used a reciprocating engine on-site to transform the methane into electrical energy. This engine produced as much as 10,000 BTU per kWh, equating to a conversion effectivity of roughly 34%. In comparison with the typical coal and current nuclear energy crops, which function at an effectivity of round 32% and 33%, respectively, Nodal’s generator operated at a barely larger effectivity.
Determine 4: Effectivity of the Common Pure Fuel Energy Vegetation, Present Nuclear Energy Vegetation, and Coal Energy Vegetation Versus Nodal’s On-Website Reciprocating Generator
Determine 5: On-Website Reciprocating Generator and Knowledge Middle
Furthermore, to successfully harness the methane for generator use, it underwent remedy by a fuel compression and conditioning skid. This significant step refined and pressurized the methane to fulfill vital requirements. The extent of remedy relies on the fuel high quality, straight influenced by the landfill’s natural matter composition. On this explicit case, the landfill fuel contained roughly 50% methane, leading to a relatively decrease degree of remedy requirement.
Determine 6: Fuel Compression and Conditioning Skid
A key facet of the venture’s success was the landfill’s means to generate a constant stream of methane attributable to its favorable waste composition and quantity. Going into the venture, we anticipated an operational uptime of 85%, which is roughly on par with the {industry} common. Nonetheless, our pilot exceeded expectations, attaining an uptime of 92%. Downtimes had been primarily attributable to upkeep functions and weren’t attributable to an absence of fuel availability.
Determine 7: Common Operational Uptime of Marathon’s and Nodal’s Pilot Venture
*The common uptime of digital asset compute suppliers is predicated on the typical Bitcoin hash price realization price. These suppliers embrace Iris Vitality, Bitdeer Applied sciences Group, Hive Digital Applied sciences, Bit Digital, CleanSpark, TeraWulf, Core Scientific, Cipher Mining Applied sciences, Riot Platforms, Marathon Digital Holdings, Argo Blockchain, Hut 8, and Digihost Expertise. The info was accessed on Could 28, 2024, and should have modified since then.
Monetary Advantages for Marathon, Nodal, and the Landfill
Nodal’s Energy Plant generates electrical energy at a price of $0.03 per kWh, which incorporates operational and upkeep prices. This price is lower than half the typical $0.08 per kWh paid by the commercial sector.
Determine 8: Common Gasoline Prices Together with Electrical energy, Operational, and Upkeep Prices of Marathon’s and Nodal’s LFG Pilot Venture
Our pilot venture was not eligible for carbon credit or renewable power credit (RECs), advantages that many related websites typically obtain. If we had certified for these incentives, our computing bills would have been considerably decrease.
Over the 240 days, Marathon and Nodal utilized roughly 1.4 million kWh of electrical energy, which the landfill was capable of generate income from. With out Marathon’s and Nodal’s pilot venture, the landfill would have flared the surplus methane, yielding no further monetary profit. Confronted with restricted choices, the landfill may both flare the methane with none monetary acquire or harness it to energy an on-site knowledge heart. The latter choice, as evidenced by the pilot venture, not solely prevented waste but in addition turned a beforehand unprofitable byproduct right into a income.
Conclusion
The outcomes from our pilot venture efficiently validated our preliminary idea. Digital asset compute isn’t solely potential but in addition an economically viable choice to cut back methane emissions from landfills. Marathon and Nodal efficiently captured methane from a landfill, transformed it into electrical energy, and used it to energy Nodal’s knowledge heart. For knowledge heart operators like Marathon and Nodal, the venture was financially advantageous, as we realized a lower-than-industry common value for computing with reliably excessive uptime. For the landfill, which beforehand didn’t have an incentive to place the methane fuel into productive use, digital asset compute offered a catalyst to cut back emissions extra successfully by creating a brand new revenue stream that in any other case couldn’t have been generated. This venture was, certainly, a win-win for all events concerned.
Moreover, we imagine the methods and insights gained from this venture open the door to new alternatives at landfill websites and different industries the place we will leverage our power harvesting applied sciences to faucet underutilized or wasted power sources and switch them into productive, extra sustainable belongings.
Disclaimer: This report is offered for normal informational functions solely. The opinions expressed within the report could differ from these expressed by Marathon Digital Holdings (“MDH”), its officers, staff, administrators or advisors or their associates. The data on this report doesn’t represent funding, authorized, accounting or different recommendation or data by MDH or its officers, staff, administrators or advisors or their associates. Info has been obtained from sources believed to be dependable, however MDH or its associates don’t warrant its completeness or accuracy. Outlooks and previous efficiency are usually not ensures of future outcomes. The data within the report could also be modified with out discover and isn’t assured to be full, appropriate or up-to-date, and should not replicate probably the most present developments.
