Need Energy: Operator, Landman, Engineer(?)

[schurchill39]

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https://www.cbc.ca/news/canada/calga...ties-1.6194653

edit: huh. i guess i shouldnt be shocked cbc is basically recycling https://forums.beyond.ca/threads/413...37#post4996237

$7.1Million in fines?!

[themack89]

We know about it.

Non-technical reference point: https://www.auc.ab.ca/Pages/Bitcoin-...n-Alberta.aspx

We check a lot of those boxes, though two of them are debatable. Obviously I am biased when I say we are optimistic that we've covered all our bases, but at least we have documented proof of attempting to.

Lately my hours are spent working on the automation, control, and monitoring side of the mine (keeping it healthy). The business boys are handling the other end.

Definitely though the Link Global case is going to be precedent setting. This story is spreading like wildfire in the mining community.

[themack89]

Hi guys,

Deployment is still up and running, AER showed up and seemed to have no issues. AUC hasn't showed up yet. We structured our agreement as an operating lease to the O&G Co as an insulating measure. Total payout so far running at 50% capacity is around 3.5 BTC since mid August, roughly 8.5 decs/d (still waiting for them to tie-in their other gas so we can run full throttle). Payout for my end of the project is looking like 8 to 12 months, not sure about the gen guys.

Working on two additional deployment deals right now and I need some help spec'ing out a sweetening plant. Anybody know some of the better guys to talk to?

[ExtraSlow]

Awesome that it seems to be working out for you. No advice, I don't deal with gas sweetening.

[themack89]

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Awesome that it seems to be working out for you. No advice, I don't deal with gas sweetening.

It is a lot of fun

Reading back through the thread before any of this was a reality is interesting. It has turned out to be one of the best investments I've ever made.

Someone commented on the BTC difficulty and not understanding... I did end up making my own model and step by step calculations of how BTC rewards are calculated and distributed. Modelled it out with assumptions for 80% difficulty growth etc, and then assigned a cauchy distribution I stole from someone's BTC daily returns data to create a monte carlo bull/bear/neutral forecast generator (should have boot strapped it in hindsight). That model is what basically got us initial buy-in, learned a fuck ton this whole process, and everyone pretty happy so far.

[Darkane]

This is awesome to see.

Per sweetening - go re-purpose the mazeppa plant haha.

[themack89]

Hi guys, popping in for short update.

Scrapped the sour gas project. Economics didn't work on either end.

Ended up deploying 600kW near Fort Sask on a rev share.

We have another 2MW package (identical to the one in the photos I posted earlier) which is looking for a home. It's currently sitting in Texas. Again, ideally rev share, but will also buy gas at the right price, terms, and location.

Things are going to get real interesting in mining with Intel entering the game. Exciting times.

[ExtraSlow]

Mack, remind me, how much gas do you need?

[mr2mike]

Sour gas almost never makes sense once you factor in the scrubber opex and capital.

[themack89]

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Mack, remind me, how much gas do you need?

It depends on what kinda generation and the heat content...

But say 1050 BTUs and 35% efficiency, 14-16 decs is safe barring decline rates.

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Sour gas almost never makes sense once you factor in the scrubber opex and capital.

Yes, I understand why now after a bunch of phone calls.

[ExtraSlow]

You guys should hire mr2mike. Only guy on beyond smarter than me.

I may be able to find your next gas source. Please hold.

[ThePenIsMightier]

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It depends on what kinda generation and the heat content...

But say 1050 BTUs and 35% efficiency, 14-16 decs is safe barring decline rates.



Yes, I understand why now after a bunch of phone calls.

The sour aspect of the concept always blew me away. So many additional challenges!
Someone please remind me the conversion from dec's to (million) SCF/day

[killramos]

~x35 for roughneck math decs to mcf

[mr2mike]

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~x35 for roughneck math decs to mcf

Conversion works in PowerPoint too.

- - - Updated - - -

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You guys should hire mr2mike. Only guy on beyond smarter than me.

I may be able to find your next gas source. Please hold.

Or I'm just a sucker beat down into the salt mine.

[killramos]

You poke fun. But very accurate

[ExtraSlow]

https://bitcoinmagazine.com/business...ess-gas-report
Exxon likes it.

[ExtraSlow]

@themack89 , any interest in partnering with someone who has large but intermittent power requirements? Like 3-4 hours twice a week, and quite low use outside those times? How much per kWh would you charge me? What's peak output in either amps or watts of your facility?

I have a little side project that might get extremely interesting soon.

[ThePenIsMightier]

@themack89 you got any updates?
I would think that the higher electricity prices have indirectly benefited you.

[themack89]

@ThePenIsMightier I'm bad at being a regular.

But yes, believe it or not, we are still hashing. It's no secret that mining has become extremely unprofitable for most miners, but we are still cash flow positive (although not much). We have two sites online, one of them is the original in this post. I suppose the secret sauce we have is how we structured our contracts, because I am quite convinced that the owner of the power generation is not coming out ahead after factoring in depreciation and anticipated maintenance (bearing swap).

Unfortunately there has been an unforeseen development. It looks like we are drawing down pressure on their reservoir too much, and it is quite noticeable how much it has been affecting their production. Now they are entertaining buying us out so we vacate the site. Ultimately that means we are going to be in the market and looking for a new site.

In other news, I have spent the last year or so working with a System Integrator who specializes in mission critical data centers. This is a fancy way of saying we implement industrial control systems which aid in cooling computers. I love it, have learned a ton on some pretty high dollar proprietary systems and design philosophies, and I pretty much have a career for the rest of my life. I'm happy for once, which I haven't been for a while.

[ThePenIsMightier]

How about now @themack89 ? Did they buy you out to vacate that site?