Soluna’s Project Dorothy Outperforms Traditional Centers with an 18% Lower Carbon Footprint

Rhea-AI Summary

Soluna Holdings, Inc. (NASDAQ: SLNH) announced the findings of an independent study by REsurety, concluding that its Project Dorothy data center emits 18% less carbon emissions than traditional data centers and can be up to 40% greener than its cryptocurrency mining peers.

Insights

Environmental Sustainability Analyst

The independent study conducted by REsurety on Soluna Holdings, Inc.'s Project Dorothy data center presents significant environmental implications for the data center industry, particularly within the realm of cryptocurrency mining, which is known for its high energy consumption. The study's finding that Project Dorothy emits 18% less carbon than traditional data centers and can be up to 40% greener than its peers is a notable achievement in the industry's push towards sustainability.

The reduction in carbon emissions is largely attributed to the data center's strategic location in West Texas, an area abundant in renewable energy sources and its utilization of curtailed wind energy. Curtailment occurs when energy production exceeds demand, leading to potential waste. By harnessing this otherwise unused energy, Project Dorothy not only operates more sustainably but also offers a solution to the challenge of renewable energy wastage.

This advancement aligns with global trends towards environmental, social and governance (ESG) criteria, which are increasingly important to investors. Companies that demonstrate a commitment to sustainability may benefit from a more positive public image, potential cost savings from efficient energy use and alignment with investor values, which can have a favorable impact on their stock performance.

Energy Market Analyst

The integration of renewable energy into high-intensity computing applications, such as those used for Bitcoin mining, is a transformative development for the energy market. By leveraging curtailed wind energy, Soluna's Project Dorothy mitigates one of the key challenges in renewable energy deployment: intermittency and grid balancing. The ability to use excess renewable energy efficiently could serve as a model for other sectors and promote broader adoption of green energy practices.

From an energy market perspective, the success of Project Dorothy could stimulate further investment in renewable infrastructure, particularly in regions where curtailment is common. This could lead to greater overall grid stability and the potential for reduced energy costs due to the optimized use of available resources.

Moreover, as regulatory pressures increase and carbon pricing mechanisms become more prevalent, the reduced carbon footprint of data centers like Project Dorothy could translate into direct financial advantages, such as lower carbon taxes or access to incentives for sustainable operations.

Tech Industry Analyst

The tech industry, especially companies involved in data-intensive operations like cryptocurrency mining and AI, is under increasing pressure to reduce its carbon footprint. The findings from the REsurety study regarding Soluna's Project Dorothy data center could catalyze a shift towards more eco-friendly computing solutions. The ability to significantly lower emissions while maintaining operational efficiency is a competitive edge that could attract environmentally conscious investors and customers.

As the demand for sustainable tech solutions grows, Soluna's approach could set a new industry standard, potentially influencing the operational strategies of other tech companies. This could lead to increased market demand for green data center technologies and services, spurring innovation and growth within the sector.

It is also worth noting that the tech industry's reputation has been marred by concerns over its environmental impact. By demonstrating a viable pathway to greener operations, Soluna could help improve the sector's image and reduce the risk of regulatory backlash, which can have far-reaching consequences for market valuation and investor confidence.

ALBANY, N.Y.--(BUSINESS WIRE)-- Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), the parent company of Soluna Computing, Inc. (“SCI”), a developer of green data centers for Bitcoin mining and other intensive computing applications, announced the findings of an independent study by REsurety which concluded that Soluna’s Project Dorothy data center in Texas emits 18% less carbon emissions than a traditional, inflexible data center and can be up to 40% greener than its cryptocurrency mining peers.

(Graphic: Business Wire)

The study by REsurety, using its Local Marginal Emissions data and analysis, found that Project Dorothy’s use of curtailed energy helps it emit 18% less carbon than traditional around-the-clock data centers located in West Texas.

This report also found that Soluna’s emissions performance is substantially better than the average cryptocurrency mining data center analyzed by WattTime, as seen in The New York Times. The NYT / WattTime report found an average MW in their sample set induced emissions of 4,188 marginal CO2 tons per year. Using a similar methodological approach, the study found that the Project Dorothy data center, due to its location in renewable-rich West Texas and its ability to use curtailed wind energy, induced an estimated 2,657 CO2 tons per year, almost 40% less.

John Belizaire, CEO of Soluna Holdings, commented, “Our journey began with a commitment to revolutionize data centers, focusing on minimal carbon impact and high efficiency. This independent study confirms our success in co-locating with renewable energy sites to establish a new benchmark in data center operations, especially crucial as we see a growing demand for sustainable cryptocurrency mining and AI computing resources.”

The details of this study can be found in Soluna’s White Paper on Project Dorothy’s Carbon Footprint here.

Soluna also released Season 4: Episode 1 of its Clean Integration Podcast where guest Rob Day of Spring Lane Capital discussed this study and the low carbon emissions at Project Dorothy.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Soluna Holdings, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company's filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and Soluna Holdings, Inc. undertakes no duty to update such information, except as required under applicable law.

In addition to figures prepared in accordance with GAAP, Soluna from time to time presents alternative non-GAAP performance measures, e.g., EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Alternative performance measures are not subject to GAAP or any other generally accepted accounting principle. Other companies may define these terms in different ways.

About Soluna Holdings, Inc (SLNH)

Soluna Holdings, Inc. is the leading developer of green data centers that convert excess renewable energy into global computing resources. Soluna builds modular, scalable data centers for computing intensive, batchable applications such as Bitcoin mining, AI, and machine learning. Soluna provides a cost-effective alternative to battery storage or transmission lines. Soluna uses technology and intentional design to solve complex, real-world challenges. Up to 30% of the power of renewable energy projects can go to waste. Soluna’s data centers enable clean electricity asset owners to ‘Sell. Every. Megawatt.’

View source version on businesswire.com: https://www.businesswire.com/news/home/20240103491736/en/

Sam Sova

Founder and CEO

SOVA

Sam@teamsova.biz

Source: Soluna Holdings, Inc.

FAQ

What did the independent study by REsurety conclude about Soluna's Project Dorothy data center?

The study found that Project Dorothy emits 18% less carbon emissions than traditional data centers and can be up to 40% greener than its cryptocurrency mining peers.

How does Project Dorothy's emissions performance compare to the average cryptocurrency mining data center?

Project Dorothy's emissions performance is substantially better than the average cryptocurrency mining data center, inducing almost 40% less CO2 tons per year.

What is the CEO, John Belizaire's, comment on the independent study's findings?

John Belizaire commented that the study confirms Soluna's success in establishing a new benchmark in data center operations, focusing on minimal carbon impact and high efficiency.

Where can the details of the study be found?

The details of the study can be found in Soluna's White Paper on Project Dorothy's Carbon Footprint.

What was discussed in Season 4: Episode 1 of Soluna's Clean Integration Podcast?

Season 4: Episode 1 of the Clean Integration Podcast discussed the low carbon emissions at Project Dorothy, featuring guest Rob Day of Spring Lane Capital.