Digihost Technology Inc. entered into a long-term contract to purchase community credits from a local community solar farm. EnergyMark is managing the project, which is located in National Grid territory. The community solar project is 5 MW in size and will produce roughly 9,500,000 kWh’s of clean electricity annually.
Digihost’s current East Delavan, N.Y. facility will be the anchor subscriber to the project. This facility is located in New York’s Zone-A region, where more than 90% of the power consumed is from zero-emissions generation. The long-term agreement will further reduce Digihost’s already low carbon footprint for its BTC mining operations and allow the company to apply the community solar credits received pursuant to the Agreement against future utility bills. The solar farm is expected start generating renewable electricity in Q4 2022.
The agreement was reached by Digihost in accordance with the DigiGreen Initiative. Digihost is committed towards achieving net zero emission from its BTC mining operations within 2030. Digihost has nearly zero emission electricity at its East Delavan facility. Additionally, Digihost participates in Demand Response programs that aid in grid reliability in times of high volatility and further reduce carbon emissions. The company currently mines with more than 90% zero emission from its power consumption.
“Continued investment and support from the Blockchain industry will accelerate the growth of renewable electricity in the United States,” says Luke Marchiori, Digihost’s chief renewable energy officer. “This long-term community solar agreement with EnergyMark demonstrates our continued commitment to sustainable mining and renewable energy development. As we grow and increase electricity consumption, we will align with additional distributed energy resources that can further reduce our carbon footprint and continue to provide essential grid reliability.”
Digihost increased its operational hashing capacity from 350 PH/s up to 650PH/s.
The company is still waiting approval from the Public Service Commission for its North Tonawanda infrastructure buildout to be used in its proposed power plant acquisition. The company believes that the New York State Senate Bill S6486D passed by the New York State Senate on June 3, 2022 will not impact the company’s proposed acquisition or its operations at the North Tonawanda plant. The bill proposes a two year moratorium on renewals or new permits for future proof of work cryptocurrency mining operations at New York State fossil fuel plants. The legislation is still in the hands of New York Governor Kathy Hochul who could sign it or veto it.
Based on the language of the bill, in particular Section 7, which states that the bill is intended to “take effect immediately and shall apply to all permits or renewal applications filed after such date,” the company believes that, should the legislation be signed into law by the governor, it will not apply to the proposed operations in North Tonawanda, as the company filed renewal applications for that plant in 2021. In addition, the bill also would not prohibit continued operation or expansion of several grid-powered cryptocurrency mining operations scattered across upstate New York, including the Company’s East Delavan facility.
“The passage of the moratorium in the New York State Senate signals New York State’s (NYS) continued desire to be a leader in developing technology for a clean future,” states Nick Williams, in-house counsel for the company. “Based on the language of the bill and the legislative record, it is our understanding that we would be exempt from the bill based on the filing of our renewal application with the PSC in April of 2021 and our filing with the DEC in November of 2021, in each case. The company is not using a retired facility, but rather adding to an existing plant, preserving high-paying jobs and creating new ones in the North Tonawanda area. We continue to work with NYS officials to confirm this understanding and to ensure we are in compliance with all rules and regulations.”
The company is also currently looking into opportunities for operational growth in North Carolina and Texas, Florida, Maryland.