#1225 Daniel Batten on Making Millions Turning Trash Into Bitcoin
7/17/2023 · 36 min · transcript via mlx
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Key topics
— Bitcoin mining on landfills can capture methane emissions and turn them into electricity, potentially making the industry carbon negative rather than carbon positive.
— Landfills are the second-largest human source of methane emissions (underestimated by 2.27x according to NASA), and are projected to become the leading source by 2032.
— A mid-sized landfill generating ~8 megawatts could power approximately 2,500 Bitcoin mining units, requiring $10–15 million in infrastructure investment per site.
— Approximately 30–40 landfills globally—requiring less than $500 million total investment—could achieve 4 million tons of methane mitigation in year one, a dramatic improvement over traditional climate tech timelines.
— Bitcoin mining's unique properties (location agnostic, time agnostic, electricity-intensive) make it an ideal persistent buyer of stranded landfill gas energy that cannot connect to grids.
— CH4 Capital is launching a $50 million initial fund to develop 4–5 landfill sites over three years while helping other Bitcoin mining operators identify suitable landfill opportunities.
Market & price signals
— None discussed.
Actionable insights
— Bitcoin miners should investigate stranded energy opportunities at landfills and waste-to-energy facilities, where electricity costs can be 50% cheaper than traditional sources while generating positive ESG impact.
— Municipalities and landfill operators can generate tens of thousands of dollars monthly in revenue with zero upfront cost by partnering with Bitcoin mining units to monetize otherwise-wasted methane.
— Investors and firms in climate tech should consider how Bitcoin mining's demand profile can unlock funding and viability for renewable and waste-to-energy projects that were previously uneconomic.
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