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We often hear about situations where there’s not enough energy to go around, yet sometimes so much energy is produced that it has to be wasted (or ‘curtailed’) to balance the power grid it’s serving. As the headline says, the value of this energy runs into many billions of dollars wasted around the world every single year!
So, can both of these things really be simultaneously true?
Unfortunately, yes. And not only that, it’s a global problem.
Let’s dive in to the problems that exist, how Renewablox solves them and how, as an investor, you can benefit from the work we do.
To have an effective competitive advantage, a company must effectively solve a real, tangible problem in a way that no-one else does. In Renewablox’s case, that problem is much bigger than people think.
Energy is lost in lots of different forms:
Excess energy is where a power producer creates more power than they need or have an agreement to provide. They may still produce power that is never used simply because it is economic to do so to satisfy their obligations or has other benefit, such as some form of green credit.
Curtailed power is when power is produced (or could be produced) but some form of limitation is preventing that power from being transported to where it is actually needed, most commonly in the form of a limitation of the national grid system. Instead, the power operator receives a payment to ‘curtail’ that power instead of it being used effectively, even if demand exists elsewhere on the grid system. That payment may come from government, central power authorities or even consumers. A great example of this is the large scale windfarms in Scotland that produce far more peak power than can be transported with existing systems, resulting in turbines being powered down and compensatory payments being made to operators instead. In 2023, the UK spent over $1bn on curtailment costs for wind production alone, giving an indication of the scale of the problem.
Stranded power is where power is produced for any number of reasons at a location where is simply can’t be effectively used or efficiently transported. Here, the power never leaves the location where it is produced and is simply lost, earthed or production facilities remain idle for lack of demand.
Power can be lost or wasted for other reasons, but Renewbalox’s solution can be scaled up or down according to the power that’s available and installed on a temporary or permanent basis right where the power is lost.
In principal, Renewablox’s solution is simple: install power intensive operations based around data centres at the physical point where the power is lost, wasted, stranded or curtailed.
Previously, this has not been possible since almost all power intensive industries require stable power inputs with uptime guarantees and cannot be shut down quickly to return power to grid where needed. However, the economics, flexibility, location agnostic nature and long term focus of Bitcoin mining mean that, when managed correctly, the problem of wasted power can finally be solved forever.
Renewablox has developed into a two tier company with a mining focus on the UK and Europe and a solar development arm in the USA spanning two legal entities. Investors can earn returns from both operations.
The problem is vast and affects all legacy national grids on the planet, exacerbated by the transition to renewable energy which is usually variable in nature. Not only that, but the problem is actually growing at an ever faster rate as that transition gathers steam.
In addition, while other countries have become leaders in Bitcoin mining, there is almost no mining activity in the UK due to the very high cost of power taken from the grid (also known as ‘in-front-of-the-meter’ Power Purchase Agreements or PPAs). However, as we’ve seen, more than enough power is already being produced for decades of growth in this area without affecting power requirements anywhere else on the grid. In short, we simply locate and monetize power that is being produced - and wasted - anyway.
Renewablox has been around since 2022 and was its pre-seed was funded personally by the officers of the company. During this time, Renewablox has generated valuable partnerships and partnerships and has identified multiple sites for development, some of which have already been modelled and are at advanced stages of discussion. The company is now well positioned to move very quickly when funding is achieved.
For example, the first site could be deployed in a matter of just a few weeks, generating revenues immediately and opening the doors for several other sites who are waiting to see the concept ‘in the flesh’ before moving forward.
Meanwhile, in the US, the large scale solar projects are already in progress. This 160 acre site in Illinois will ultimately house up to four 10 MW solar projects that will be prepared and then sold to long term operators. Project on this scale always take time and the first revenues are not expected to be received by Renewablox until late 2025 at the earliest. In addition, completing this site is likely to lead to more sites for development in the future.
The Total Addressable Market (TAM) in the UK alone is vast. So vast, in fact, that the numbers can seem unreal, but this simply illustrates the sheer scale of wasted power in the UK.
Whilst Renewablox can ultimately look to secure much of this power for mining projects, it is wise to take a scaled approach which forms the basis of our ‘go-to-market’ (GTM) strategy.
This means dealing initially with small power operators and then scaling over time to larger operators in different power generation sectors. We have already started with methane producers via anaerobic digesters, then, broadly, moving to solar and finally to wind, summarized below.
In reality, Renewablox will consider all proposals on a project by project basis and is often approached with new projects within the shores of the UK and beyond. We can confirm that we are exploring several additional sites beyond the UK borders.
There is currently almost no competition in the UK, though we ultimately expect that to change in the next few years, which makes timing essential to secure a first mover and reputational advantage.
It’s worth noting that Bitcoin miners don’t technically compete with each other in terms of mining itself since it’s an open network with a reward system directly linked to input that applies to all participants regardless of scale or location.
However, miners DO compete with each other to secure preferential power agreements which is key to Renewablox’s proposal.
Renewablox is not currently revenue generating and all operational costs to date and the pre-seed round requirements have been met by the officers of the company. Renewablox has spent significant time investing in industry wide relationships, securing supply lines and partnerships and, most importantly, finding and modelling sites for development directly with power operators. There are now sites that are ready for development once funding is achieved.
Meanwhile in the US, the solar projects progress at their own pace due to several immovable steps that must happen over a certain period and in a certain order, applicable to all new power projects in the area. First revenues are not expected until late 2025 at the earliest, and, assuming all complete as planned, Renewablox will be profitable from that date onwards though these projects alone. Some of those profits will be paid as dividends to investors (including a one off 'Profit Shae Payment' detailed below) and others will be reinvested in new projects.
Renewablox’s core team is experienced and well connected in the industries of Bitcoin, Bitcoin mining, renewable energy and real estate and all are committed to the long term success of the company. Their full links can be found on the company website located here.
Although Renewablox has significant capital requirements for the scale of the projects identified, the raise itself is quite small at just under $700,000 due to the expectation of revenues from US solar projects from late 2025 onwards.
Achieving this goal allows significantly faster deployment of projects that are already identified, but it should be noted that the company continues to progress all activities even without funding in place, albeit at a slower pace.
As mentioned, Renewablox actually consists of two companies – A US registered company, known as Renewablox Inc., which is a Delaware registered company set up as a Special Purpose Vehicle (SPV) for the Illinois project and Renewablox Ltd, which is a UK registered company designated as the primary developer of UK (and European) projects. Renewablox Ltd is a shareholder of Renewablox Incorporated. Investors via Wefunder will benefit from both operations.
Renewablox is offering an unusual and attractive ROI structure for Wefunder investors above and beyond the benefits of the usual SAFE format which is laid out in in detail in the attached document called ‘Investor ROI’ which you should examine carefully.
However, the top line is as follows:
On completion of the US solar projects and assuming all targets are met (approximately 3 years after closure of this investment round) all Wefunder investors will receive their initial investment PLUS a one off payment of the same amount again, paid in dollars. This is an ROI of 100% over 3 years, annualized to be 33% a year.
As an example, an investment of $5,000 will yield a total return of $10,000 at that point. (Initial investment PLUS 100% of that investment in informal dividends)
In addition, investors will also still hold the same equity rights as before, in Renewablox Ltd, via the terms of the Wefunder SAFE, which will be converted to direct equity at Series A, acquisition or AIM flotation. This stage should be considered a minimum five year investment from date of raise closure.
The aim is provide solid, identifiable returns for the risk that early investors take at a fixed point, on specific terms, but with a potential for longer term gains.
There are caveats to this first stage payment which are outlined in the attached documentation and must be considered before investing.
This crowdfund uses a well established investment vehicle known as a 'SAFE' (Simple Agreement for Future Equity) on a fixed capital valuation. It is also registered with the SEC and complies with all appropriate regulations that form part of that registration.
Setting it up this way also provides equality for all investors. In other words, this means that even if you only have $100 to invest in this exciting project, you'll still get the same terms as someone who invests $100,000.
That said, if you're an early investor, you can take advantage of a lower valuation cap and secure an even better deal for the future! Please note, however, that the early bird benefits are strictly limited and once the initial level is reached, they will not be available again.
But before you do anything at all, we strongly recommend doing the following:
Don't forget that all investment levels carry additional perks over the equity itself, so be sure to check out what you'll also receive in return for your investment.
Finally, if you're ready to secure a piece of this incredibly exciting future for yourself, simply click on the big red ‘Invest’ button to the right and follow the instructions.
We look forward to you joining us on this incredible journey!
Callum, Jake and Jason
