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Renewablox was formed to bring the two proven technologies of solar power and Bitcoin mining together to profitably solve a universal problem that is slowing the transition to renewable energy across the globe.
Here’s what that problem is, how big it is and how we’re fixing it ...
Both solar and Bitcoin mining operations are proven technologies in their own right - we’re not planning to reinvent the wheel!
In fact, for our own sites, we’ll be using the very same tried and tested formulas to deliver solar installations (either directly or with partners) that have been done many times before, although, naturally, we’ll include the latest, most efficient tech.
After all, we know these roadmaps to be predictable, profitable and straightforward. In fact, today’s modelling, satellite data and data processing techniques are so good, it’s now possible to estimate returns on a project with a very high degree of certainty.
However, this also means we’ll face the same problem that all would-be solar operators face when building their projects – getting connected to the grid.
Joining the back of the queue – assuming you’re even able to - means a wait of up to seven years while the grid infrastructure is surveyed, assessed and upgraded before you can export your power and get paid for it. In fact, in some areas of America, power companies have temporarily stopped accepting connection requests due the extreme backlog, even while the push for the green transformation is bigger than ever.
And it’s not just America. The problem is global as can be seen from news headlines from pretty much everywhere. A sample of news stories is included in the attached documents below.
National grids almost everywhere are seeing similar waiting times as older grids, designed as a top-down approach to suit large fossil or nuclear generation from centralized locations, are adapted to accept variable loads from multiple renewable sources in a way that is safe, reliable and efficient.
It's not an easy task and it's created a bottleneck that is very, very real.
Not only that, but it wastes energy and prolongs the use of less favourable power sources, such as fossil fuels, and for the would-be renewable energy producer itself, it creates uncertainty, delays projects and can even prevent them from going ahead.
Unless, of course, you can find a way to enable these projects to proceed and be profitable regardless of grid connection waiting time.
And that’s where Renewablox comes in.
Bitcoin mining – the process by which the global Bitcoin network is secured – is a rather unique industry. It is also one that the core officers of Renewablox have significant experience in.
It’s highly energy intensive and is most profitable when connected directly to a reliable, cheap power source. However, it is also the only industry in the world where powering up or down entire operations does not affect the capability of the global network in any way, nor does it matter where they are physically located to contribute to that network.
In fact, Bitcoin mining is one of the few technologies that is completely location agnostic. This means Bitcoin miners can be placed virtually anywhere, even in the most rural locations.
Put this all together and you have a perfect solution to absorb power and generate revenue where it would otherwise be entirely wasted or, worse, wouldn’t even exist in the first place.
Like, for example, in a solar operation that is awaiting grid connection.
Operators simply install, connect to the internet, and let the machines run, generating Bitcoin at a 100% margin while the sun is shining. Additionally, they could run 24/7 if they opt to connect to the grid, which is usually much easier to do if you’re only looking to draw power, rather than send it as well.
This is ideal for the Bitcoin mining operator as overnight rates are often very cheap (sometimes even negative), solving an overnight excess power problem from the local energy utility at the same time. This is why mining operations are now often used to stabilize power usage on national or regional grids, balancing out the fluctuations often associated with renewable energy.
So, problem solved, right?
Bitcoin mining is easy on paper and, even in practice, it is generally quite simple to build a small, home based or hobby system and maybe generate a little extra revenue with just a little money and knowledge.
But an efficient large-scale solution requires significant capital, expertise and at least some on site presence, creating issues in all those categories that solar operators either don’t know how to overcome or simply have no interest in resolving. After all, they are energy producers, not Bitcoin miners.
What these solar operators need is a turnkey solution that can be tailored to their particular circumstances and modelled in detail, right from design stage if necessary, so that revenue streams are clear and calculable.
Renewablox aims to provide this service and, if necessary, access to capital, insurance and expertise; thereby allowing projects to proceed at any stage of development. This can be done on partnership, consultancy or ownership basis according to the requirements of the client.
When connectivity is achieved, a detailed assessment of the business model will be made and the operator will have the choice to either continue mining on an ongoing basis, or to switch wholly to their previous business model based on the agreements made and objectives of the client.
In short, it’s a simple, proven solution that carries an extremely high degree of flexibility.
Specifically, Renewablox plans to generate profits in three ways:
Since these projects have a necessarily long lead time due to regulatory process, Renewablox plans to actively secure, develop and deploy multiple operations simultaneously, both via our own and acquisitions and by finding solar operators in need of a revenue stream while awaiting connectivity.
Further, to accelerate the plan and secure as much of the total addressable market as possible, Renewablox will draw on key partnerships with appropriate industry leading parties on a project-by-project basis.
We’re already two years of research, extensive modelling and ground-work in, meaning we’ve already started!
In fact, the first major project will be deployed in Illinois, USA, where we have secured a ten year option on 160 acres of land with a view to developing four community solar projects for resale and one wholly owned solar array and Bitcoin mining operation that will ultimately be connected to the grid.
This will be our showcase project, demonstrating the viability of the solution in a full, practical sense and providing a positive, and real, reference point for future clients. Even better, the structure of this development means that only a small amount of initial funding - $700,000 - is required to fund the entire company and deliver phase one of this project, after which the rest of the solar aspect of the operation will be self-financing.
We call this “Project One” and we will develop this at the same time as actively looking for new land to develop, something else that we are already progressing.
Project One is covered in more detail in the attached documents at the bottom of this page.
In a word, enormous!
Not only that, it is almost entirely unaddressed.
In fact, there are two markets we are addressing – Solar and Bitcoin mining itself.
Bitcoin Mining is already a global, multi-billion dollar industry with the market size estimated at $1.92Bn in 2022 and expected to reach $7Bn by 2032 at a CAGR of 12.90% between 2023 and 2032. (Source: Precedence Research)
Since Bitcoin mining is entirely open source and has no upper limit on the number of participants, there are no real competitors to any individual miners. You’re simply being rewarded for your contribution to the network in a way that is entirely commensurate with your power input. Your profitability is not necessary directly linked to your market share.
But the bottom line is that it all comes down to power cost – the lower it is, the more longevity, resilience and profitability you have. “Free” power (from stranded solar energy in this case) guarantees indefinite, profitable production for decades to come, no matter the price of Bitcoin itself or what level the difficulty is.
In short, when you have direct access to power that is generated from your own operation, your ability to mine even in the most adverse conditions is assured.
Solar, of course, is a well-established global industry valued at $186.Bn (2022) and forecasted to grow to $305.85Bn by 2030, according to analysis carried out by Vantage Market Research.
We are most interested in a subset of this; those projects that are in development or in a connection queue.
And there are lots of them:
Whilst there is clearly a vast addressable market, types of solar projects also play an important part in our own development projects.
In our case, we are referring to Community Solar.
The idea behind this concept is to provide clean energy to people in the local community who would not normally have access to it. This could be for any number of reasons, such as they might not have access to sufficient roof space, they may live in rented properties where there are restrictions or they simply don't have the knowledge, expertise or money to install it themselves.
This market is also significant, with analysis from The National Renewable Energy Laboratory (NREL) (2022) revealing that almost half of US individuals & businesses are unable to host rooftop solar systems.
In fact, Community Solar is the fastest growing segment of the entire US solar industry, going from scattered pilot projects in 2007, to over 5 GW installed capacity by 2022 (Source: Wood Mackenzie, 2023)
The Coalition for Community Solar Access (2023) is targeting 30 GW of installed capacity by 2030, which will give up to 10 million Americans the opportunity to access Community Solar. This is an enormous runway of growth that is left to be captured and Renewablox aims to capitalize on this incentive-driven system over the next few years, especially in geographical areas served by PGM and CAISO.
Renewablox’s first deployment – Project one – makes extensive use of the Community Solar tax incentives to generate an attractive return for investors.
In short, Community Solar sits in its own category, with an almost guaranteed acceptance by local regulators and very significant tax credits for delivery for years to come.
While the processes are proven and the technologies being implemented are well developed, putting it all together efficiently and profitably requires significant time input and access to industry leading expertise. Renewablox either has these skills in-house or secures them by partnership on a project by project basis. We did exactly this with Project One.
In that case, it was clear that it would be far more efficient to join forces with a company who has a strong track record in this specific form of Community Solar project delivery to reduce that learning curve and drive profitability earlier. So, we intend to form joint venture with an energy advisory with over 14 years' experience in similar solar project developments including implementation management, financial feasibility analysis and ongoing asset management services. To date, over $500m of these projects have already been successfully delivered by this team.
Meanwhile, the Renewablox core team, consisting of Callum Wheeler, Jake Menard and Jason Deane, will draw on their combined Bitcoin mining experience of twelve years to design, seek capital for and build the on-site mining solution, working with specialist optimising agents for maximum return on investment.
Over the next five years, Renewablox will simply repeat the same process with new land acquisitions and secure additional clients from operators whose projects are currently stalled in the interconnection queue using Project One as a positive reference point.
With Project One already being progressed, the top line milestone plan for the next five years looks like this:
Top line forecasted revenues for Project One are approximately $12m gross profit in solar development fees (net, before tax, expected to be between $8m and $9.2m) and another $12.6m gross profit in Bitcoin Mining activity, delivered within the first five years of operation.
Bitcoin mining revenues were made in a snapshot model in October 2023. Due to the number of variables in mining operations, new models need to produced periodically and updated versions will be released in due course, assessing viability on an ongoing basis.
For the time being, we have elected to assume zero other revenues in this timescale since:
That said, Renewablox is already actively pursuing new project locations and clients for partnership and we are fully expecting to add new revenue streams and projects before the valuation process at Series A.
To date, the project has been developed at the personal cost of the three officers and our combined, personal investment is in excess of $85,000. We definitely have skin in the game and you can be sure we’re in it for the long term.
The terms provisionally agreed with our chosen partners for Project One also gives us access to an additional $220,000 fund that we can draw on immediately to start the development process of the first phase of that project. This has allowed us to develop this site without even having to wait for this funding round to complete. That means we’re moving forward even as you’re reading this!
This crowdfund aims to secure just under $700,000. At first glance, this appears to be an usually small amount for a project of this size, but since Project One is fundamentally self-financing beyond phase one, it is all that is required at this stage. Investors in this round secure equity in all current and future company activities, including Project One.
At an appropriate point in the next 12-24 months, a Series A round will be required to finance the mining deployment on the POG1 phase of Project One. At that time, agents will be appointed to carry out a full valuation and seek investment. When this happens, investors in this early crowdfund will see their SAFEs converted to actual equity.
Of course, Series A should generate a valuation that is higher than the early investor valuation cap, meaning that early investors in this round should secure a disproportionately advantageous conversion on their investment. In simple terms, that means a higher proportion of equity than later investors will receive for the same amount of money.
Think of it as a reward for taking on the higher levels of risk associated with early-stage start-ups.
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
A final revelation: