Sangha Renewables, a firm specializing in integrating bitcoin mining with renewable energy production, has commenced construction on a 19.9-megawatt (MW) bitcoin mining facility in West Texas. This project is strategically co-located with a solar energy plant, enabling the mining operation to utilize surplus electricity that might otherwise be wasted. (prnewswire.com)
Addressing Energy Surplus and Enhancing Renewable Economics
Renewable energy producers often encounter challenges with surplus energy, sometimes even incurring costs to offload it. By integrating bitcoin mining, these companies can convert excess electricity into a valuable digital asset, enhancing their economic efficiency. Sangha Renewables’ approach addresses the issue of stranded energy and reduces waste by converting it into bitcoin. (bitcoinversus.tech)
Project Details and Financial Projections
The 19.9 MW facility is projected to generate approximately 900 bitcoins over the next decade. The operation is expected to bring in $42 million in revenue in the first 12 months, with access to electricity at a cost between 2.8 and 3.2 cents per kilowatt-hour on a 30-year lease. This pricing allows investors to acquire bitcoin at a 25% to 50% discount to spot prices. (coindesk.com)
Investment Opportunities and Partnerships
To fund this initiative, Sangha Renewables has partnered with Plural Energy, an on-chain investing platform focused on clean energy projects. Through this collaboration, accredited investors can invest directly in the bitcoin mine and choose to receive distributions in US dollars or in mined bitcoin. (prnewswire.com)
Future Expansion Plans
While the current project is limited to 19.9 MW due to regulatory constraints, Sangha Renewables has plans to expand the facility up to 110 MW, pending final approvals. This expansion aims to further integrate bitcoin mining with renewable energy production, enhancing the economic viability of renewable energy projects. (coindesk.com)
Sangha Renewables’ innovative approach exemplifies how integrating bitcoin mining with renewable energy production can address energy surplus issues and create new revenue streams for energy producers.
