EarthRenew (ERTH) has signed a power sales agreement with a cryptocurrency mining company.
The cryptocurrency mining company will provide off-peak power over a 5-year term.
The agreement provides the cryptocurrency mining company access to a portion of EarthRenew’s power production while allowing EarthRenew to take advantage of power peaking opportunities.
As a result of the power sales agreement, revenue for power generation at the Strathmore facility is now forecast to exceed $1.3 million dollars for the 2021 calendar year.
“Cryptocurrency mining is a way for the company to utilize the unique asset at our Strathmore facility while we pursue our primary objective of building a regenerative fertilizer business,” CEO Keith Driver commented.
“We are excited to have found an off-take partner that was such a good fit with our power production plans. We anticipate that this arrangement will allow us to run the Strathmore unit more consistently, ramping production up when power pricing is at a premium. With this flexibility, we intend to capitalize on the opportunities for peak pricing while maintaining consistent operations of the Strathmore facility. This, along with our agreement with ENEL-X, announced in a press release dated March 31, 2021, is projected to will allow us to maximize the utility of our power generation asset as we scale our business.”
On March 31, 2021, the Company also announced an agreement with Enel-X to participate in its operating reserves program, which the company intends to continue alongside the arrangement with the cryptocurrency mining company.
EarthRenew transforms livestock waste into a high-performance organic fertilizer to be used by organic and traditional growers in Canada and the United States.
Located on a 25,000 head cattle feedlot, EarthRenew's flagship Strathmore plant is capable of producing up to four megawatts per hour of low-cost electricity powered by a natural gas-fired turbine. The exhausted heat from the turbine is used to convert manure into certified organic fertilizer.