$13 Million Investment Powers Bitcoin Mining Venture Transforming Waste into BTC
Nodal Power has secured a significant funding round of $13 million, aimed at furthering their efforts to transform methane gas from landfills into electricity.
This electricity is then channeled into local power grids as a form of renewable energy. However, not all of this generated energy will be sold. In fact, a portion of it will be directly employed by the company for the purpose of engaging in clean Bitcoin mining, which is used as a backup strategy when the economics of the power grid are less favorable.
Matthew Jones, Co-Founder and COO of Nodal Power, explained that their Bitcoin mining activities currently take place exclusively within their data centers.
Methane gas, a potent greenhouse gas produced by the decomposition of organic matter in landfills, significantly contributes to global warming. Research has indicated that it is 25 times more effective at trapping heat than carbon dioxide.
Nodal Power’s innovative approach involves capturing and repurposing the leaked methane gas by burning it in a generator to produce usable power. This approach not only prevents the wasteful release of methane into the atmosphere but also turns it into a profitable resource.
Presently, Nodal Power operates two data centers for mining activities in the United States, with a third one planned for early 2024. The largest facility mainly supplies electricity to the local power utility, while the second site supports 500 miners, contributing 40 petahashes per second (PH/s) of capacity for mining operations. According to Decrypt, the newly funded third site will replicate the characteristics of the second site in terms of power capacity, mining capabilities, and location.
Matthew Jones emphasized that although their biggest facility has the smallest Bitcoin deployment, most of the electricity generated is supplied to the power grid, following a traditional power plant model. Nevertheless, practical considerations lead around 75% of landfills to use the produced methane gas on-site, as pointed out by Daniel Batten, the Co-Founder of CH4 Capital. This investment fund of $400 million focuses on supporting companies that aim to utilize landfill gas for Bitcoin mining.
It is worth noting that a recent report from KPMG highlighted that the volume of methane gas being flared in the United States and Canada could potentially provide enough energy to power the entire Bitcoin network.
