Landfill Gas Powers Bitcoin Mining: A Feasible and Beneficial Approach

A recent study conducted by Marathon and Nodal Power has demonstrated that utilizing landfill gas (LFG) for digital asset compute, specifically Bitcoin mining, is not only feasible but also economically viable and environmentally beneficial. This collaboration involved harnessing excess capacity from Nodal’s project, which is exclusively powered by landfill methane gas. The process of converting methane into electricity to power an on-site data center proved to be both reliable and financially advantageous.

Key Findings

Economic Viability and Environmental Benefits Marathon and Nodal's partnership successfully utilized methane from a landfill, converting it into electricity to power a digital asset data center. This initiative not only reduced methane emissions but also generated a new revenue stream for the landfill. The cost of electricity produced was significantly lower than the industry average, highlighting the financial benefits for both Marathon and Nodal. Additionally, using methane to power compute operations effectively mitigated emissions compared to traditional flaring methods.

Pilot Project Details

Location: Utah, USA
Launch Date: September 27, 2023
Status: On-going
Duration: 240+ days
Capacity: 270 kW
Computing Equipment: 83 S19J Pros
Operational Hash Rate: 8.3 PH/s

Methane Utilization and Emission Reduction

Over 240 days, approximately 16.1 million standard cubic feet (SCF) of methane were utilized. If not harnessed, this methane would have been flared, which is only 92% efficient in reducing global warming potential. By using the methane for electricity generation, the project achieved nearly 100% mitigation efficiency, preventing the release of about 1.3 million SCF of methane into the atmosphere.

Environmental Impact

The project significantly reduced greenhouse gas emissions. Using a 20-year global warming potential (GWP) timeline, the initiative prevented the release of approximately 60.9 million pounds of carbon dioxide equivalent (CO2e). Over 240 days, this reduction is comparable to the annual emissions of 6,627 gas-powered passenger cars. Using a 100-year GWP timeline, the project mitigated 20.3 million pounds of CO2e, equivalent to the emissions from 2,209 cars.

Operational Efficiency and Financial Benefits

The on-site reciprocating engine used to convert methane into electricity operated at an efficiency of approximately 34%, slightly higher than the average efficiency of coal and nuclear power plants. The project maintained an operational uptime of 92%, exceeding the expected 85%, mainly due to the consistent methane supply from the landfill.

Financially, the electricity generated cost $0.03 per kWh, significantly lower than the industrial sector's average of $0.08 per kWh. This low cost, combined with the high uptime, made the project economically beneficial. The landfill, which previously had no incentive to utilize methane productively, could now generate revenue by powering the data center, turning a previously wasted resource into a profitable asset.

The pilot project validated the feasibility and economic viability of using landfill gas for digital asset compute. Marathon and Nodal’s success in capturing and converting methane into electricity for a data center demonstrated a win-win scenario. The initiative reduced methane emissions effectively, provided financial benefits, and opened doors to new opportunities for energy harvesting technologies. This project marks a significant step towards sustainable and inclusive energy solutions, transforming underutilized or wasted energy sources into productive assets.

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