EarthRenew Signs Power Sales Agreement With Crypto Miner
EarthRenew (CSE: ERTH) has entered another arrangement for its electricity production division. The company this morning announced that it has signed a power sales agreement with a cryptocurrency mining firm, thereby increasing the revenue potential for its power production.
The arrangement will see the company provide off-peak power to an undisclosed firm for the purpose of cryptocurrency mining. The agreement, which is for a five year term, will enable the company to still take advantage of power peaking opportunities as well as the arrangement with Enel-X for an operating reserves program.
The company has indicated that with the implementation of this new production agreement, revenues from the power division are expected to more than double from its 2020 figure of $506,000 to that of $1.3 million for 2021. Margins as a result are expected to be near to 40%.
“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. 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.”
Keith Driver, CEO of EarthRenew
The company currently generates power from a 4 MW Rolls Royce turbine at its Strathmore facility, which is also used to produce regeneration agriculture solutions.
EarthRenew last traded at $0.325 on the CSE.
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